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!
It’s very tempting to pay off the credit card debts when you know you have a stash in an IRA. However, the amount of money you take out (I assume $65k to pay off credit card balances) will add into your regular income, which may accidentally bump you into the next higher tax bracket. For example, if you file as an individual and your income is usually below $38, with that $65k from the IRA, you suddenly look at the 22% tax bracket vs. 12% prior to the IRA withdrawals.
Worse, if you file Medicare at 65, the SSA will review your 2018 return when you’re 63. Once income, or more precisely the AGI, is above $85k for single, you will be paying additional premiums for Medicare Part B and D.
Thus, look the pros and cons for each choice before making a withdrawal from the IRA. Better yet, talk to a professional for ideas/confirmations. 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!
Regardless it’s fixed or variable, the primary purpose of an annuity is to provide a lifetime income. Others may use it as an investment tool to minimize the annual taxation. In your case, if you find after adding all the annuity income, pension (if you have one), and social security income still can’t cover the occasional contingencies, such as the house maintenance cost, you may want to dip into other savings, whether it’s a checking account or an IRA account. Last but not least, if the bills getting too much and you don’t plan to leave the home, a reverse mortgage may be an option too. Make sure you check out with a CFP® or RICP® first. Best!
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!