David Nash

CFP®, CFA
Retirement, Investing, Small Business
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“As the founder of Magister Wealth, David Nash helps families build stronger and healthier financial lives by aligning and improving their resources and goals.”
Firm:

Magister Wealth

Job Title:

Owner

Biography:

David is the founder of Magister Wealth and the visionary behind the firm’s unique approach to delivering holistic, integrated financial planning solutions. He is described by those who know him as a “fixer”, “life coach” and mentor who asks the hard questions many other advisors are afraid to ask. An avid student of the markets with a passion for economics, philosophy and psychology, David is a natural problem solver and accomplished teacher. He applies his keen analytical skills in an effort to deliver a truly comprehensive approach to solving his client’s most pressing financial challenges.

David’s financial advisory experience includes both client-facing and back office positions at award-winning independent advisory firms across the country. For Covenant Multifamily Offices, the leading San Antonio-based wealth management firm with $1.3 billion in client assets (as of May 2013), David served as an Advisory Strategist where he was responsible for developing and executing financial planning and investment research projects. Prior to joining Covenant, David was an Associate Portfolio Manager and Financial Planner for 1st Portfolio Wealth Advisors, a wealth management firm serving clients in the greater metropolitan Washington, DC area. At 1st Portfolio, David helped to monitor and trade over $100 million in client accounts, conducted investment research and developed comprehensive financial plans. He also managed and trained staff in the firm’s client service and data management best practices.

David graduated with a Bachelor of Science from George Mason University and completed his Certificate in Financial Planning from Boston University’s Institute of Finance. He is a CFA® charterholder and a CERTIFIED FINANCIAL PLANNER™ professional. David served as the 2017 Chairman and 2016 President of the Financial Planning Association (FPA) chapter of San Antonio and South Texas.

For over 20 years, David pursued his passion for music as an instrumentalist, conductor and educator. As a professional trombone player, he was a semi-finalist in major orchestra auditions. David’s students received scholarships to some of the best conservatories in the world including Juilliard and the New England Conservatories.

David enjoys bike riding and swimming. He resides in San Antonio with his wife Ellyn and daughters Sylvia and Emily.

Assets Under Management:

$2 million

Fee Structure:

Fee-Only
Hourly
Asset-Based

CRD Number:

5882986

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    Career / Compensation, 401(k), IRAs, Taxes, Retirement Plans, Starting Out
Should I contribute towards a traditional 401(k), Roth 401(k), or Roth IRA?
100% of people found this answer helpful

Congratulations on a great start to your career and retirement! Check your 401K plan fees, hopefully they are not excessive. Even with high relative fees, the match is worth doing up to 5%. Roth contributions are typically matched with regular 401K funds. You will pay on qualified withdrawals at 59.5 or later.

You don’t need a Roth IRA account. If you leave your employer and want to move the assets over, then you would create a Roth IRA and roll the Roth 401K into it. Roth IRA contributions income phase outs start at $120,000 for single tax filers with $5,500 max contributions. 401K’s have no income limits, but the total contribution limit is $18,500. (2018 information for those under 50.)

I would recommend the Roth in your scenario. Over time more detailed planning to optimize your retirement and tax efficiency could be highly valuable.

$12,350 Total Annual Savings. ($65,000 x 15% = $9,750 savings plus the match of $2,600= 4% x $65,000)

Only considering Federal taxes lets look at regular 401K contributions (tax deferred)

  • Lowers your current taxable income.
  • Given your $65,000 salary, your current 401K/IRA savings are lowering your income in the 22% tax bracket. (2018 tax brackets)

$9,750 only reduces your net income by $7,605.

  • $2,145 less in Federal taxes ($9,750 x 22% tax bracket)
  • $7,605 in lower total annual income ($9,750- $2,145 lower taxes)

Nice current tax benefit, but also consider future taxes.

Roth 401K(Roth IRA) contributions

  • Do not lower your current income, but you never pay taxes on qualified withdrawals.
  • Your $9,750 contribution lowers your net income by that amount.
  • The $2,600 matching is regular 401K assets.

To illustrate what may occur let’s take a hypothetical $12,350 a year total savings forward 40 years to your early 60’s at 5%. With these assumptions over $1.49 Million. (A vast oversimplification, but it leaves out raises, and all sorts of other positive and negative things that may occur.) With this much tax deferred assets there begins to be a danger of paying higher tax rates in your retirement than you are paying now.

Roth versus regular 401K/IRA assets fall into the taxes now versus taxes later pools. As you progress in your career and get raises, your tax bracket will tend to go up and therefor the value of regular 401K contributions goes up as well. Coordinating current versus future tax rates, your total assets and spending, can provide lifetime tax savings and efficiencies. In the future consider having an expert run the numbers with your specific goals and information. Saving is the most important thing, but tax efficiencies can improve your net lifetime income.

Hope this helps please feel to reach out to me with questions!

David Nash, CFA, CFP®

2 weeks ago
    College Tuition, Debt, 401(k)
Should I max out my 401(k) contributions or make principal payments on student loan debt?
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Yesterday
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Can my mother consolidate her two mortgages down to one, lower payment?
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5 days ago
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As a 58-year-old woman who needs to save for retirement, what is the best way to save?
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2 weeks ago
    Financial Planning, Investing, Stocks, Starting Out
If I invest $500 into stocks every month and expect a 10 percent return every month, I calculated that it would take around 4-5 years to reach $1,000,000 in profits; does this seem reasonable?
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1 week ago