Financial Planning Solutions, LLC
Rick Fingerman is managing partner and co-founder of Financial Planning Solutions, LLC, an independent fee-based financial planning and Registered Investment Advisor located in Newton, MA. He has over 25 years’ experience helping people make intelligent decisions with their money.
Rick specializes in helping clients plan for retirement, create a proper investment plan, save for college, and protect their assets from a catastrophe. He also has expertise in financial issues specific to women and women in transition. He believes having a good financial plan that addresses one's goals and concerns, can make all the difference in the world.
Rick currently holds the CERTIFIED FINANCIAL PLANNER™ designation as well as the Certified Divorce Financial Analyst™ professional designation from IDFA™. For those in the unfortunate position of going through a divorce, Rick can be instrumental in helping them determine a fair division of marital assets.
Rick is an active member of the Financial Planning Association of MA where he is a past President and Chairman. Currently, he holds the position of Liaison to the Financial Coaching Program with Dana Farber Cancer Institute in Boston. This program provides pro bono financial planning to cancer patients and their families. You can watch a short video on this program under the Client Center tab on the home page.
Rick has been quoted in several national publications such as the Wall Street Journal, The Boston Globe, The Chicago Tribune, and CNBC MarketWatch. Furthermore, Rick has been granted several awards throughout his career such as the Boston Five Star Professional Wealth Manager Award in 2013, 2015, and 2016 as well as other prominent awards for financial planning and work with Pro Bono and charitable organizations.
Rick lives in Arlington, MA with his wife and stepdaughter. He is also the proud father of a grown daughter and son from a previous marriage. His interests include spending time with his family, performing stand-up comedy, woodworking, hiking, exercise, and nutrition.
Assets Under Management:
Financial Planning Solutions, LLC (FPS) is a fee-based Registered Investment Advisor. Financial Planning Solutions, LLC (FPS) is providing general information for educational purposes only. This should not be considered specific investment, tax, or legal advice. FPS only renders personalized advice to each client. Information herein includes opinions and source information that is believed to be reliable. However, such information may not be independently verified by FPS.
Meet Rick Fingerman, CFP®
This is definitely one of those "It depends" type of questions.
Ideally, in my opinion, one should pay more than just interest if possible so they pay down principal on a HELOC. Also, since we don't know if you owe 20k or 200k on the HELOC, it is hard to say. Lastly, we don't know what you have in retirement, if you are collecting SS, if you have a spouse that has or will have any retirement income, what you actually need in retirement, and whether you plan on selling your house in the near future. See what I mean by "It depends".
I strongly recommend sitting down with a fee-based Certified Financial Planner practitioner to look at your overall financial picture. Good luck! Rick
One additional thing to consider, pertaining to Social Security, is if you take it early and pass away early, your spouse is locked in to a smaller widow benefit (assuming your benefit is higher than hers). By waiting, your benefit is higher and therefore her widow benefit would be higher as well. If you sit down with a planner, just run the numbers to see how things look overall.
If you are unable to contribute to a deductible IRA I suggest first looking into a Roth IRA. Neither non-deductible IRA's or Roth IRA's are deductible BUT the Roth allows some advantages such as tax FREE growth (assuming certain rules are met).
Making non-deductible IRA contributions do not allow for a deduction but should be reported on IRS form 8606 and contributions should not be commingled with any deductible IRA accounts. Keeping this separate helps ensure you will only pay taxes on the gains in the account vs. the whole amount when you take distributions.
If your wife inherits your traditional IRA, and is over 70 1/2 when you pass away, she will be required to take a required minimum distribution each year. This distribution is based on her age and the value of the account. The amount she takes out (whether the minimum or more than that) is taxable as ordinary income. Depending on her other income at the time will dictate how much, if any, tax she has to pay. Your wife could keep the IRA in your name or roll it into her own.
Your daughter, whom you named secondary beneficiary, would only kick in if you and your wife passed away at the same time. Once your wife inherits your IRA, she could then name a new primary beneficiary as your daughter. If you are concerned that your wife wouldn't name your daughter, I suggest sitting down with an advisor or estate planning attorney to discuss some options.
As far as the taxability for your daughter, regardless of her age when she inherits this IRA, she would be required to take these required minimum distributions. Only spouses get the chance to wait until they are 70 1/2 to begin.
If this is a regular deductible IRA, taxes will be due on the amount withdrawn. You could also be subject to a 10% early withdrawal penalty if you are under 59 1/2. There are some exceptions to the 10% penalty such as a disability or certain medical expenses.