Signature Estate & Investment Advisors LLC
Theodore E. Saade, CFP®, AIF®, CMFC, is a Senior Partner with Signature Estate & Investment Advisors, a Registered Investment Advisory firm offering wealth management services tailored to meet the unique needs of affluent individuals, institutions and corporations.
Mr. Saade works with a team of knowledgeable professionals that have established an unparalleled reputation for helping wealthy multi-generational families manage their financial lives. Typically, their client relationships begin with individuals who are approaching retirement or in retirement – those who are committed to enjoying their retirement, but also hoping to provide a legacy for future generations – and quickly expands to children, grandchildren and beyond.
Mr. Saade and his team have helped clients weather all types of markets and every economic climate imaginable. This has instilled in them a deep appreciation for the critical importance of asset protection and income – generation strategies for pre-retirees and retirees. That’s why they don’t chase trends or the latest fad, but instead focus their efforts on the responsible balance between preservation and growth of clients’ assets, managing money in a way that assumes the least amount of risk necessary to help clients achieve retirement income and legacy planning goals.
The knowledge and experience of Mr. Saade’s team is backed by a $5B AUM registered investment advisory firm; with 18 advisors and 47 support staff that encompass client service, investment research, trading, and operations support. Collectively, the firm’s clients have access to the most sophisticated and competent wealth management experience possible. SEIA’s independent vantage point allows for the delivery and implementation of wealth management strategies through objective, comprehensive and unbiased advice.
Mr. Saade is a 20+ year veteran of the securities and insurance business, and earned his Bachelor’s degree in Economics with an emphasis in Biochemistry with Honors from University of California, Los Angeles. Mr. Saade completed the CFP® professional education program in 1998, and is a CERTIFIED FINANCIAL PLANNER™ practitioner with the Certified Financial Planner Board of Standards, Inc . In addition, he completed the Chartered Mutual Fund Counselor (CMFC) Education program in 2000 and earned the Accredited Investment Fiduciary® (AIF®) professional designation conferred by Fiduciary360. He also received formal training in investment fiduciary responsibility.
Specializing in investment, retirement and estate planning, Mr. Saade is a thought leader in the financial services community. He has been included in REP Magazine’s Top 40 Under 40 since the inception of the award in 2013. An active member of his community, Mr. Saade has also been recognized as a Five Star Wealth Manager* in Los Angeles Magazine since 2012 and was recognized as a Top Wealth Manager for “Providing Exceptional Service And Overall Satisfaction” as published in Los Angeles Magazine in 2014. He has been published annually in Worth Magazine since 2010 and has been recognized as a Leading Wealth Advisor as published in Worth Magazine annually since 2012. Most recently, Mr. Saade’s comments have appeared in MONEY Magazine and InvestmentNews.
Mr. Saade is a 25 yr. resident of Los Angeles, California, where he lives with his wife and 3 sons.
Bachelor's Degree in Economics, UCLA
Specialization in Biochemistry , UCLA
Assets Under Management:
Registered Representative/Securities Offered through Signator Investors, Inc., Member FINRA, SIPC, 2121 Ave of the Stars, Suite 1600, Los Angeles, CA 90067 (310)712-2323. SEIA, LLC and its investment advisory services are offered independent of Signator Investors, Inc. and any subsidiaries or affiliates. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of security and should not be acted upon without consulting with a licensed professional regarding your specific situation. SEIA, LLC does not provide tax or legal advice.
I am sorry to hear about your recent loss. I do want to take the opportunity to congratulate you on your completion of your residency, this is an outstanding accomplishment. I also understand you have just received an inheritance. To begin, it is important to take an overall wealth assessment to review your current financial picture. You should look at what your overall goals and objectives are, income, expenses, assets and any debts. You may want to consider paying off any debt you may have from student loans (if any), and other liabilities.
Seeing that you have a large inheritance, for many of our clients, we discuss placing funds in a three bucket approach: short, intermediate, and long term. This is a strategy used by many to achieve retirement income needs while utilizing a diversified investment approach with varying time horizons. The first bucket is considered to be a conservative portfolio to cover living expenses and other short term needs. The intermediate bucket encompasses a balanced strategy with a blend of stocks and bonds. The goal of this approach is to maintain a balanced level of risk and return. The final bucket is the long term bucket. This specific bucket focuses on a longer term strategy by investing in more growth oriented securities. With the search for growth, comes an increased amount of risk.
The bucket approach must be maintained and monitored by you and your wealth advisor/planner. Your inherited funds and the three bucket approach are great topics to speak with your wealth advisor/planner. He/she will be able to outline these next steps in your financial picture.
Great question. The Traditional IRA (Individual Retirement Account), is a type of tax-deferred retirement account. One of the great benefits of this account is that your investments grow tax-deferred until you eventually begin taking distributions. When taking a distribution from a Traditional IRA, any pre-tax funds and earnings within the account, are included in your taxable income. The funds are taxed at the rates based on your income for that year.
It is important to remember that the IRA will have certain restrictions on when funds can be distributed. You may take funds whenever you'd like, but an additional 10% early withdrawal penalty may be assessed if you are under the age of 59 1/2. This early withdrawal penalty is on top of the income tax you will owe as well. The 10% early withdrawal may be avoided in certain situations. Please see the link below to the irs.gov website for further information:
Retirement plans and their specific features are excellent topics to review with an independent wealth advisor/planner. As with any important financial decision, I’d recommend speaking to a Certified Financial Planner™ Professional to help walk you through which solution best fits your current financial picture.
First off, I want to congratulate you for maxing out your 401k as that is a commendable feat and will get you well on your way to a comfortable retirement. I will assume you are over age 50 since you mention that you contributed $24,000 to your Roth 401k and are taking advantage of the catch up contribution. Since you are participating in a workplace retirement plan, there are limitations on how much you can contribute to an IRA. As a precursor, all numbers quoted here are per IRS guidelines for 2016. If you are single, you cannot make a Roth IRA contribution if your modified adjusted gross income is $132,000 or greater. If you are married filing jointly, you cannot make a Roth IRA contribution if your modified adjusted gross income is $194,000 or greater.
Moreover, since you are participating in a workplace retirement plan, you cannot make a deductible contribution to a Traditional IRA under the following circumstances: married filing jointly at modified adjusted gross income of $118,000 or greater or single at modified adjusted gross income of $71,000 or greater. Note that you still may make a Traditional IRA contribution up to $6,500, however, it will not be allowed as a deduction assuming your modified adjusted gross income is above these levels.
As far as other options go, a Simplified Employee Pension (SEP) plan might make sense on your small business income. It would allow larger contributions than what you’re currently doing ($53,000 or 25% of compensation, whichever is smaller). There are other factors to consider as well, such as contributions that may need to be made for your employees. As with any important financial decision, I’d recommend speaking to a Certified Financial Planner® to help walk you through what solution will best fit your circumstances.
Based on the information you have provided, you would most likely be subject to taxation. The exclusion you are referencing is called the Section 121 Primary Residence Exclusion because it is explained under section 121 of the Internal Revenue Code.
It is important to note that you must be married and filing jointly to be eligible for the $500,000 exclusion. If this is not the case, you can only qualify for a $250,000 exclusion. Also note that you must have lived in the home as your primary residence for at least 2 of the last 5 years to qualify, however, there are exceptions in the case of a divorce. This is why it is important to consult with a knowledgeable CFP® or CPA to determine eligibility for your specific scenario.
Here is a link to the IRS website explaining this particular rule in detail: https://www.irs.gov/publications/p523/ar02.html
You pose an excellent question. When dividends are no longer reinvested, the cash goes directly into your respective brokerage account. This will not affect the cost basis of any of your investments. If this occurs within a taxable account (i.e. individual account, trust) then the dividends would be fully taxable as per your specific tax bracket regardless of if it’s reinvested or not.
As you may know, when you receive a dividend you are getting cash from the underlying asset. When it’s reinvested, instead of getting the cash, the funds are immediately used to buy more shares of the respective security. Many individuals often use this as a way of dollar cost averaging their investments if the dividends are not needed as income.