Patrick Traverse, founder of MoneyCoach, decided to get into financial services after an 18-year professional hockey career. His journey to his new career started as a young investor during his early twenties as he became frustrated with the type of help he was getting from his advisors. He felt compelled to learn on his own about everything he needed to know to make proper financial decisions. His new passion for the intricacies of the markets and personal finance pushed him to choose financial planning as a second career.
Patrick and his team know that clients are busy with their life and sometimes feel they don’t have the time to get to learn everything they need to know. Patrick thinks it is important that he advises his clients on every facet of their financial life. He feels that every piece plays hand in hand with each other and if an area of their finances is neglected, it could mean that their whole life plan could come down crashing.
After more than 4 years in the business, Patrick founded MoneyCoach in 2016. He uses his experience as a top-level athlete to help his clients become financially successful. He feels that the most important missing component that most investors do not have is accountability. By being their financial coach, Patrick guides his clients to control their money. Not that money is everything, but so much of our lives depends on how we manage money!
Organizational Leadership, Quinnipiac University
Assets Under Management:
MoneyCoach LLC and/or Patrick Traverse offer Investment advisory and financial planning services through Belpointe Asset Management, LLC, 125 Greenwich Avenue, Greenwich, CT 06830 (“Belpointe), an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration with the SEC should not be construed to imply that the SEC has approved or endorsed qualifications or the services Belpointe Asset Management offers, or that or its personnel possess a particular level of skill, expertise or training. Insurance products are offered through Belpointe Insurance, LLC and Belpointe Specialty Insurance, LLC. MoneyCoach LLC is not affiliated with Belpointe Asset Management, LLC. Additional information about Belpointe Asset Management is available on the SEC’s website at www.adviserinfo.sec.gov.
A minor cannot be the beneficiary of an IRA unless you appoint a guardian to the account. If properly done, the minor (under the custodian's guidance) would have 3 choices for distributions:
- Lump sum
- 5-Year Distribution
- Lifetime distribution
If the distribution is larger than a few thousand dollars, it might be subject to the parent's tax rate. So take advice from a tax professional before taking this decision.
You can also create a revocable trust to be the beneficiary of the IRA while the minor can be stated as beneficiary of the trust itself with an adult trustee. The advantage of this method would be the ability to customize the way the minor uses the funds. If you feel strongly that you would like him/her to have access to the money only under specific circumstances, the trust can accomplish that for you. Doing this properly would help defer tax until later but would be subject to trust tax rates going forward, which are higher than income taxes.
I hope this helps. Contact me for more information.
It depends what these 10 mutual funds are invested in. The Dow Jones is an index of 30 large American Companies. You are right during the last few weeks, the index has done quite well but we also know that it will also underperform other indexes or asset classes at other periods of time.
The problem with many retail investors is that they don’t understand what they own and sell their investments when it underperforms to switch to a fund or asset class that overperformed. This is the classic Sell Low and Buy High investors need to avoid.
I recommend that you ask a fiduciary advisor to educate you on what you own and learn about your goals. If your portfolio is not in line with what you need, you can make changes. After you are comfortable with your portfolio, I recommend that you stick with it.
Chasing performance is the main reason why investors are not successful.
I hope this helps. Good luck.
I like the way you are thinking!
My recommendation would depend on how big your SEP IRA is. Your income is high right now and you are probably in a high income tax bracket. Adding a significant amount of conversion on top of your income might not be the wisest thing to do.
-If the SEP is large, I would roll it over to your employer plan if it allows it. This way you would be instantly able to take advantage of the Back Door Roth IRA contribution strategy.
-If the SEP is somewhat small, I would convert it over a few years. If you decide to do this, make sure you pay attention to the next tax bracket, even if it means that it could take an additional year to convert the whole account.
I hope this helps.
I have to say that I am impressed with your thought of wanting to save at your age. Most people in your situation would rather spend their first paycheck than to put it away for later!
To answer your question, I would save the money to pay for tuition. Retirement is a great goal to save for however there are many other goals you will want to reach before you get there. I recommend my clients to maintain a low amount of committed/fixed expenses. This is the best way to become financially secure. If you are able to save up for your education and pay your debt off soon after your graduate, it will go a long way.
Another recommendation: Once you move out of your's parents home, maintain your lodging expenses (rent/renter's insurance vs mortgage/real estate tax/home insurance) to no more than 25% of your net pay. Doing this will ensure that you don't become house poor and are able to contribute to your different accounts, including your retirement plans.
I believe this plan will ensure that you build yourself a strong financial footing, before thinking long-term.
I hope this help.
This is a tough decision to make!
First of all, you might not be able to withdraw out of your 401k. Depending on your plan, you might be able to make an in-service distribution of your funds. If not, you would need to take a loan to take the money out of a 401k from an employer you still work for. Either way, I am not sure I would recommend you doing so. The cost and the complications that could arise from the decision might be devastating.
When I help clients with their debt problem, the first thing I do is not looking for ways to pay it off. I look at their behavior around money and see if their lifestyle is the problem. I address this first before we look for a payoff solution. My concern with your question is that you could possibly get back into debt after your pay it off using your 401k.
I would consult with a fiduciary financial planner. With more information he/she might be able to guide you towards the best solution to your problem.