Insight Financial Strategists LLC
Chris Chen CFP® helps individuals and families plan difficult life transitions such as retirement and divorce.
As a CFP® professional, Chris works with your own legal and tax advisers to build cost-effective and tax-efficient strategies to help you achieve your long term financial goals with wealth preservation, retirement income planning, and legacy planning.His calming confidence and knowledgeable guidance through complex financial transitions such as retirement and divorce can help you gain a sense of security and reassurance for your financial future.
Chris’s career in financial services followed a rewarding career in strategic business management during which he lived, worked, and grew successful businesses in the US, Asia/ Pacific and Europe. Chris earned his Bachelor’s degree in Economics and his MBA in Finance. He is also a CERTIFIED FINANCIAL PLANNER® practitioner and a Certified Divorce Financial Analyst. Chris is a member of the Financial Planning Association, the Massachusetts Council on Family Mediation and he is the Treasurer of the Association of Divorce Financial Planners, a non profit organization.
Chris invites you to sign up to start your own financial plan for free at po.st/financialplan
Blend and balanced refer to the asset mix that a mutual fund may hold.
Equity funds are often classified into value and growth. Value funds invest in stocks that are perceived to be undervalued. They often deliver a relatively high dividend. Growth funds invest in stocks that are perceived to have high growth potential.
Blend funds are funds that blend the value and growth approach; they invest in a mixture of stocks that the portfolio manager perceives as undervalued and have high growth potential.
Balanced funds refer to mutual funds that invest in both equity and fixed income securities, thus achieving a "balance."
Much like having budget to gamble when you go to a casino (you are too young for that), you want to have a budget for your stock investing learning experience.
In general, I advise people against buying individual stocks for their "serious money." That is because the investment insight, and skill of the vast majority of people not investing professionally, will be inferior to the insight and skill of professionals.
That being said, I am in favor of learning experiences. I would look around for a financial website that provides stock picking advice and see if you find one that resonates with you. Then I would pass that website by your father and his financial planner and see what they think. Assuming it all passes muster, try it out, but only with money that you can afford to lose.
Unfortunately you cannot claim both benefits. You can only claim the higher of the two. So, if your husband's benefit was higher than yours, you could claim the higher amount. If your husband's benefit was lower than yours, you are better off with your own. If your husband's benefit was higher, go to a Social Security office. They can help you with that.
Assuming that you are under 59 1/2, you would have to pay income taxes and penalties on the withdrawal from your retirement plan. Hence, for the $13,000 that you plan to use to pay the IRS, you will net less than that. If you wanted to avoid the penalties and taxes, you would have to roll over your retirement plan into another retirement plan such as an IRA. Yes, a rollover from a company retirement plan into an IRA is allowed.
You may plan to pay for the tax debt differently. For instance, by reducing your husband's contribution to his retirement plan, you may be able to pay off your tax debt sooner. In the end, the income tax impact may be roughly equivalent. You will, however, avoid the early withdrawal penalty.
As with many of these questions, it depends!
If you are over 59 1/2 years of age at the time of the distribution, and you and your ex spouse have had the Roth IRA for less than 5 years, you would be subject to income taxes on the earnings, but not penalties
If you are over 59 1/2 years of age at the time of the distribution, and you and your ex spouse have had the Roth IRA for more than 5 years, you would not be subject to income tax or penalties.
In general, if you are less than 59 1/2 years old and you and your ex-spouse have had the IRA for less than 5 years, your early distribution could be subject to penalties, and the earnings would be subject to income tax.
If you use the money for one of the following reasons, you could avoid the penalty, but not the tax if:
- You use up to $10,000 (lifetime maximum) to pay for a first-time home purchase.
- You use the withdrawal to pay for qualified education expenses.
- You become disabled or pass away.
- If you are unemployed, you use the withdrawal to pay for unreimbursed medical expenses or health insurance.
- You make substantially equal periodic withdrawals until you reach 59 1/2 years of age.