Advise Finance, LLC
Certified Financial Planner
Rose was born and raised in China, but educated in the US. Consequently, she enjoys the best of both worlds. She aims to incorporate that philosophy into her practice and provides her clients with the same privilege. Rose was the first American Certified Financial Planner(tm) practitioner who ever won the annual international financial plan competition twice (2014 & 2016), sponsored by the Global PlanPlus Award. Additionally, Rose has been frequently interviewed and quoted by major financial media sources, such as The Wall Street Journal, Kiplinger, Forbes, US World News, Reuters, CNBC, Chicago Tribune, and InvestmentNews. You can see a clip of her interview with the local TV, WBIR, about teaching kids of financial literacy.
Besides having the general knowledge of financial planning, Rose has two other distinctive designations: 1) RICP®--Retirement Income Certified Professional, which gives her the expertise to help retirees during the retirement in issues such as safe income withdrawal, Social Security and Medicare planning, long-term care, etc, and 2) CDFA®--Certified Divorce Financial Analyst, which allows her to assist attorneys and clients to achieve the best possible equitable settlement and at the same time to avoid typical financial and tax pitfalls. Rose Swanger is passionate about promoting financial literacy. Her personal goal is to help Americans get their financial houses in order, one community at a time.
BS, Medical Technology, Georgia State University
MBA, Financial Planning, California Lutheran University
Advise Finance is a marketing name for securities and advisory services offered through Royal Alliance Associates, Inc., Member FINRA/SIPC and a registered investment advisor. This communication is strictly intended for individuals residing in the states of TN,MD, and VA, where the RR is registered to conduct securities business. No offers may be made or accepted from any resident outside the specific state(s) referenced. IMPORTANT CONSUMER INFORMATION : A broker-dealer, investment adviser, BD agent, or IA rep may only transact business in a state if first registered, or is excluded or exempt from state broker/dealer, investment adviser, BD agent, or IA registration requirements as appropriate. Follow-up, individualized responses to persons in a state by such a firm or individual that involve either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without first complying with appropriate registration requirements, or an applicable exemption or exclusion. For information concerning the licensing status or disciplinary history of a broker-dealer, investment, adviser, BD agent, or IA rep, a consumer should contact his or her state securities law administrator.
Advise Finance, LLC
If you’re working at 70-year-young and make at least $6,500/yr., you can put $6,500 towards Roth and designate your beneficiaries accordingly. When the time comes, your beneficiaries will get a good size of inheritance and tax-free.
If you have retired completely from the work, then invest the entire $36k in a taxable account. Just make sure you make it tax-efficient and growth oriented since you want to give the most to your loved ones. The best part of investing in a taxable account is retaining the step-up basis. For example, you purchased a fund at $50/share. At the date of the death, it’s worth $150/share. Your beneficiary can sell it immediately with zero capital gain tax on that $100 gain. Talk to a financial professional, and see what else you can learn and do with your intention. Best!
If your AGI (the last line on the front page of 1040) is less than $99k, you can deduct the IRA contributions even if you and your wife already made a contribution to the SIMPLE plan. Once your AGI is above $119k, you’re fully phased out for any deduction from the IRA contribution. Hope that helps!
I agree with your research. Unless the pension administrator can point out where exactly in the plan summary says there’s no rollover option for an older beneficiary, your mother should be able to do a rollover without the 20% tax withholding. She may need your help get the paperwork done right so she won’t get a nasty 1099-R distribution notice next year. One caveat: because your mother is over 70 ½, which means she needs to take a RMD from the rollover. This can be easily solved with the custodian company that holds the new rollover IRA account. Usually the custodian or financial institution will calculate a number for your mother to do an annual withdrawal. Lastly, please urge her to set up primary and contingency beneficiaries once she opens her rollover IRA account. Best!
Glad you ask the question before you jump into the bond wagon. Here’s a simple example of learning bond. If a bond sells at its par value or face value, $1,000, with a 5-year term and 5% interest, you will get your $1,000 principal back, plus the annul $50 interest at its maturity. However, life is not always that simple and straight forward as we hope it to be. Depending on the supply and demand, bond’s price can vary, thus the premium or discount price.
For example, when the interest rate falls, older bonds may become valuable because they were sold in a higher interest rate environment and therefore with a higher coupon rate. Consequently, investors holding those bonds can commend a "premium" to sell them. On the other hand, if interest rate rises, older bonds may become less valuable. In order to get rid of them, investors may have to sell for less, thus the "discount” price.
Bond prices are quoted as a percent of the bond’s face value, and an easy way to learn the price of a bond is simply adding a zero to the price quoted. For instance, when you hear a bond is quoted at 99, it means the price for the bond is $990 for every $1,000 of face value. Because the bond price is below the face value, it’s said the bond is traded at a discount. On the other hand, if the bond is trading at 101, it means you will pay $1,010 to get that $1,000 face value bond. Thus, you’re paying a premium. Happy learning!
Yes, you can absolutely do that, investing and managing on your own. Before I became a financial professional, I used to be a DIY investor myself. It’s both exciting and nervous because you know you can do the trades by click a button but you are not sure if you made the right one.
There are many things to consider when you invest on your own: 1) What’s your goal--generating a great investment return, income, or both? Your specific goal will direct you in selecting what kind of stocks you need to own. 2) What’s the investment vehicle, taxable, tax-deferred, or tax exempt to hold your investment? Depending on where you invest, the dividends and capital gains can either be taxed or not at all. If you’re already in a high-tax bracket, you may accidently have to pay an extra 3.8% net investment income surtax should you chose the wrong vehicle to invest. 3) Are you diversified enough, or are you putting all the money in one basket? Until you have the time to study the investment journal, how can you be sure you have the most diversification to reduce the investment risks?
Those are just some initial questions for you to consider. There’s nothing wrong to be a DIY investor, but sometimes a professional’s second opinion is worth more the cost for that conversion. Best!