STA Wealth Management, LLC
Partner and Executive VP of Financial Planning
Scott Bishop is a Partner and is Exec. Vice President of Financial Planning at STA Wealth, a Houston based RIA Firm. In this role, Scott guides clients through the process of identifying and realizing their personal financial planning goals while working with them to help develop, implement and monitor strategies to help assure the long-term coordination of their overall financial, retirement, business planning.
Scott is also the host of STA's radio show, "Financial Planning Fridays" on The STA Money Hour, on 950AM KPRC Radio in Houston at 12pm Central where he frequently discusses tax and financial planning topics and hosts interviews of industry experts.
Scott graduated from the University of Texas at Austin with a Bachelor of Business Administration in Accounting and received his Master of Business Administration from the University of St. Thomas.
Currently, Scott is a CFP® and a CPA and also holds a PFS® designation. Scott has been active as a member of the American Institute of Certified Public Accountants (AICPA), the Texas Society of Certified Public Accountants (TSCPA) and its Houston CPA Society as a member of its Board of Directors. He has also been recognized for excellence by being named the Young CPA of the Year for 2002-2003 by the Houston CPA Society, one of the largest and most prominent CPA chapters in the United States.
In addition, Scott has both authored and has been interviewed for numerous articles in financial related publications and websites such as the Wall Street Journal, MarketWatch, CNBC, USA Today, Washington Post, The New York Times, Investopedia, Houston Chronicle, Investment News, Kiplinger, The AICPA Tax Section, BankRate.com, the Houston Business Journal and the CPA Forum. Scott is also a member of the Houston Business and Estate Planning Council.
BBA - Accounting, University of Texas at Austin
MBA - Finance, University of St. Thomas
Assets Under Management:
AUM information provide is for the firm STA Wealth Management, LLC of which Scott Bishop is a partner/shareholder. The information herein has been obtained from sources believed to be reliable, but we do not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by STA Wealth Management, LLC), or any non-investment related content, made reference to directly or indirectly in this presentation will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice from STA Wealth Management, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. STA Wealth Management, LLC is neither a law firm nor a certified public accounting firm and no portion of this article should be construed as legal or accounting advice. A copy of the STA Wealth Management, LLC’s current written disclosure statement discussing our advisory services and fees is available for review upon request. ALL INFORMATION PROVIDED HEREIN IS FOR EDUCATIONAL PURPOSES ONLY – USE ONLY AT YOUR OWN RISK AND PERIL.
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STA Wealth Planning Process - Scott Bishop
All else being equal, yes, I think that is a good plan. The only downside would be if you drain your taxable account to a level where you don't have access to funds needed in an "emergency". I would not want you to pay any 10% penalties or have to do a 401k loan.
The answer is typically no - they can not. However to what level the protection holds, it really depends on state laws regarding homestead and asset protections. There are also Federal laws.
To be clear, this is related to qualified retirement plans and ERISA Plans (like IRAs, Roth IRAs, 401k's and Pension plans and not necessarily other types of accounts). Some states have very generous exemptions on annuities and insurance products as well.
As an example, in Texas our retirement savingsare pretty much 100% protected.
Note that there was recent court cases that have now excluded inherited IRAs from Federal protections - see my article:
It really depends on the state law where the will is being probated. If a will is contested during probate, the estate's assets will typically not be distributed until the will contest is done. If the executor distributes assets during a will contest, they could be held liable.
In most states, you can not shelter assets AFTER the rise of liability (like a legal lawsuit/contest) as that would be considered a fraudulent transfer.
There is very little that you can do to protect/shelter your assets that you receive (if distributed) as they can be clawed-back (a court order to return assets) if the will-contest succeeds.
That is one of the reasons that I recommend that any person creating a will create good no contest clauses that if they contest and lose, they get disinherited.
Great question. Where a 401(k) loan is always preferable to a distributtion (as you don't have to pay taxes or penalties on the money), the biggest downside is that you have to re-pay it with interest back in post-tax dollars. This is usually done with payroll deductions over a period of time selected in the plan document (check out the summary plan descritipion or SPD for your plan). FYI - the interest goes to your account and NOT to the 401k plan provider (it is a loan to yourself). Please note that if you default on a loan, you have to pay taxes and penalties (the penalties are if you are under age 55).
That is a very prudent question (and I discussed it in my Layoff Survival Guide). Part of it would depend on:
- How much after-tax savings you have,
- How much taxable income you will make in the year of layoff (tax benefit of 401k)
- How much you spend a month,
- Vesting of the match (would you get to keep it), and
- How much time you would be unemployed if laid off (job search time)
If you were very fearful of a job loss and had a high likelihood of not having a job for an extended period, I would like you to have a MINIMUM of 6 months spending in after tax accounts. If you didn't have that, then I would definitely put more into savings. The 6% match (if vested) would be a plus, but would not be worth not being able to pay your mortgage! Also, the lower your income, the less beneficial the tax dedctuion for the deferral into the 401k.