Weise Capital & Risk Advisors
Chief Investment Officer, Director
As Chief Investment Officer and Director, Planning & Valuation, Chase oversees the investment and planning analysis processes. His team helps individuals and organizations execute effective financial, investment, risk management, and insurance strategies. Additionally, Mr. Chandler leads the valuation process for private clients and potential investments.
Chase has counseled leading professionals in the fields of health care, insurance, agriculture, oil and gas, asset management, and media. Clients include Fortune 500 C-level and director executives, medical and dental practices, pharmacy owners, professional investors, actuaries, and attorneys. Additionally, he regularly lectures on financial planning, risk management, and strategic investment planning. Chandler earned his bachelors in business administration from Harding University before attending Cornell University and The American College of Financial Services (for finance), then Pepperdine University and Lipscomb University (for business graduate school). Mr. Chandler holds the CFP® certification, the CLU® charter, the AAMS® designation, and is a 2017 Level II candidate in the CFA Program.
In 2012, Chandler released his first book, The Wealthy Physician, which immediately became an Amazon best-seller. In 2015, his second book, The Wealthy Family, was released. He has given talks around the country about investment, risk management, and financial planning topics (but has since slowed down to spend more time with his wife and kids, all of which are out of his league). He has spoken for LIMRA, Ohio National Financial Services, Northwestern Mutual, NAIFA, Harding University Pharmacy, and UAMS. Chase enjoys reading, writing, church activities, and, most of all, spending time with his wife (Beth) and two young children (Kate and Owen). He is an avid reader and recovering golfer.
BBA, Business Administration, Harding University
Assets Under Management:
Weise Capital Advisors, LLC (WCA). A Division of Capital Markets IQ, LLC, a SEC registered investment advisor. No financial, legal, or tax decisions should be made without thorough consultation with properly credentialed and experienced advisors. Weise Capital Advisors, LLC does not give tax or legal advice. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
The solution depends on her current income and basic living expenses, as well as her desires. If your mother-in-law is currently retired and does not need to funds for basic living income, it would be best to set aside the amount needed for travel and other fulfilling endeavors in a very safe (cash-based) place. The rest of the funds might then be divided between a preservation and growth allocation. The preservation dollars would be invested for income (meaning, dividend-paying stocks, preferreds, and bonds) and moderate growth. The growth portion would be more aggressive and carry more risk. Her advisor/investment manager would rebalance 1-2 times per year, selling what has increased to maintain the cash needed for the next 12 months. On the other hand, if she does currently need income, she could use the same strategy, but simply increase the amount of short-term cash and treasuries to ~24 months of income.
It will be best for her (and the family) to do due diligence before jumping into any one strategy or product. But also, relax and avoid decision fatigue. Incidentally, I've had a good number of clients receive large inheritances in the past few years, usually due to an unexpected death of a parent or spouse. Many who receive large amounts after emotionally difficult times become overburdened with all of the decisions that need to be made. Sudden money often creates more problems than it solves. Keep it simple, and flexible. Make a rule that you'll make no more than 2-3 decisions per month over the course of, say, 3-6 months. This helps mitigate the [internal or external] pressure to buy, invest, spend, or give before having time to truly contemplate how to maximize the impact.
LAST POINT- be deliberate before buying any product (like an annuity) that comes with high surrender charges. It may be prudent to put some of the funds in an annuity for guaranteed income (not for growth). But make sure it's a real need and you're getting the best deal before taking action.
No one will know exactly what needs to be done until we see what actually comes from the proposed legislation. That said, you should probably be funding a Roth either way. You can do that directly or, if income is over the limit, through a back door Roth (by funding a non-deductible Traditional IRA then converting to a Roth).
Ideally, you want a good mix of tax-deferred investments and tax-free investments as you reach your later years. This will allow you to take from either depending on where tax rates are at that time.
There are two primary factors to consider when planning for Social Security Retirement Benefits. Here is a quick overview:
- Your Social Security Retirement Benefit will be based on your Average Indexed Monthly Earnings ("AIME"). The Social Security Administration ("SSA") takes your highest 35 years of earnings (indexed for inflation) and divides the sum by 420 (i.e. 35 years x 12). This is the AIME. Then they apply the Personal Insurance Amount (PIA) formula, which determines your monthly retirement payment. The PIA formula can get a bit complex, but it is usually around 30-50% of AIME. The higher a retiree's AIME the lower the percentage. And lower income earners will receive a higher PIA payment. (You can see an example at the ssa.gov website here.)
- The second consideration is how benefits will be taxed. Combined Income, as defined by SSA, is your AGI + tax-free interest received + 1/2 of your PIA payment. If you're married filing jointly and your combined income is above $32,000, half of your PIA payment could be taxable. If combined income is > $44.000 then 85% of your payment could be taxable. If single, half of your payment will be taxable if combined income is north of $25,000. If combined income is > $34,000 it will be 85% taxable. The amount of your SS payment that is taxable is also dependent on a few other factors found of page 7 of Pub. 915.
Your advisor should be able to calculate a current estimate of PIA and/or strategize with you about how to optimize benefits and tax efficiency.
As long as you are consistently paying it off each month, the credit card can be convenient and provide extra perks and rewards. However, the credit card company's ability to provide those rewards comes from the vast majority of cardholders who accrue a balance overtime and use the card more for pleasure or as an emergency fund.
As a general rule, you want to avoid using debt for depreciating assets. This can be difficult when in school or just starting out because you may not be able to afford to not take a bank loan. But the tendency is for people to continue taking on car loans as income increases, which allows them to buy more expensive luxury cars or have excess cash for other purposes. Say you have $20,000 in savings (above your emergency fund) and you need a car, costing roughly $20,000. You can either pay cash for the car or take a loan. The only reason to take a loan is if you're very confident the $20,000 can be invested to earn greater returns than the interest you would pay on the car note.
Student loans (for certain degrees) can be "good debt", plus the advantage of the interest tax deduction. A mortgage also gets an interest deduction, and is an example of an appreciating asset. But even when you buy appreciating assets, using debt can be risky. You want to make sure the asset is (1) very likely to increase long-term at a greater rate than the after-tax cost of the debt and (2) maintain enough equity (value - debt) so you'll be okay even if the asset does experience a loss.
In summary, debt can be used for beneficial purposes. But it takes significant willpower to not use debt to finance lifestyle.
The first thing to do would be to call your creditors and ask them to work with you. You may be able to reduce student loan and other payments, at least for a period. To avoid dipping into long-term savings, trying getting a part-time or "alternative" job. There are many part-time and/or unpopular jobs that are in high demand, but not many people want to do them. For instance, court stenographers in my area are now being offered nearly $100,000 per year because they're in such short supply. IT administrators, waste management workers, and call center reps are other examples.
This will help (1) provide some current income, (2) prove to creditors that you're making your best effort, and (3) possibly lead to meeting new contacts for the full-time job you want. It would probably only be wise to withdraw from your 401(k) or IRA if you are going to use those funds to gain an in-demand skill-set. Otherwise, you risk using the money for living expenses and putting off the inevitable. Unless you're 59.5 or have a hardship provision, you'll pay tax and a 10% penalty on your withdrawal. But if you use it for higher education, you could take advantage of certain education tax credits.
If you want to be in the best mid to long-term financial situation, do everything you can to make do on unemployment or part-time income right now. And get started learning new, relevant, and in-demand skills.
Hope this helps!
B. Chase Chandler, CFP