Alliance Wealth Management
CEO and Founder
Given Jeff's unique interest in the financial markets and his excited to meet new people, being a financial advisor was the perfect fit for his career. He started his career as a financial advisor with A.G. Edwards & Sons in 2001.
In January of 2005, 4 years into his career, he was called upon to support Operation Iraqi Freedom. Anticipating his return, he attained the Chartered Retirement Planning Counselor designation between mission and duties during his downtime in Iraq.
As soon as he returned from Iraq, he resumed his career as a financial advisor. His goal was to provide financial guidance to people in all areas including: investments, insurance, taxes, and estate planning. In November 2007, he became a CERTIFIED FINANCIAL PLANNER™ practitioner, and a month after that, he formed Alliance Investment Planning Group LLC. Since then, Jeff created his own registered investment adviser named Alliance Wealth Management LLC.
With the hope of helping people make sense of investing and their personal finances, Jeff launched his own personal financial blog called Good Financial Cents and life insurance site Life Insurance by Jeff. With so many different options out there, Jeff hopes to ease the fog and help others make clear and smart financial decisions. He currently writes for Forbes, US News & World Report, and CNBC. In addition, he has been featured in major sites such as Huffington Post, Wall Street Journal, Reuters, Kiplingers, and Fox Business.
Jeff resides in Carterville, IL with his wife, Mandy, and his three sons Parker, Bentley, and Sloane and daughter Janella.
BA, Finance, Southern Illinois University
Assets Under Management:
GFC TV Ep 009: This Investor Didn’t Know He Was Paying $5,500 Per Year in Investment Fees
I'd recommend maxing out your 401k, to the extent of maxing out the employer match. It's free money, and you shouldn't leave that on the table, especially if you're already vested in the plan. Then I'd go for the Roth IRA. I get what you're saying about being able to pull the money out if you need to, but if you focus on long-term investing, going for the 401k employer match first is the better way. And remember also that your 401k might have a loan provision, which could serve the same function as withdrawing money from a Roth IRA. The loan would enable you to access the funds without disturbing your investments. Once the Roth is funded, then, yes shift remaining funds over to the 401k.
It sounds like you've got a 401k plan at the university for a relatively low paying job, in addition to the fact that there's no employer match. You would probably be better off with an IRA rollover. But since you're also a student, the Roth IRA rollover might be a better option. Once the tax had been paid on the conversion, you will be able, you'll be able to withdraw your contributions from the plan tax free, in the event that you need to access the funds now. As a student, that's a definite consideration. But if you leave the money there, it will continue to grow tax-deferred, giving you a tax free source of cash in retirement. It's a good deal all around!
Nope. The $6,500 contribution limit applies to both traditional or Roth IRAs, as if they were the same account. Now you can split the contribution between the two, say $3,250 to a traditional IRA, and $3,250 to a Roth IRA. But you can't exceed $6,500 total in the contribution to the two.
You can, but you'll be limited to the amount that's in your traditional IRA right now, and/or the amount of your current traditional IRA contribution. The good thing is that there's no income limit on Roth IRA conversions, unlike direct contributions. If you're asking if you can convert your employer 401k's to a Roth IRA, the answer is almost certainly not. You won't be able to do that unless one of you leave your job and no longer participates in the 401k. But you can - and probably should ask if your employer has or is planning to offer a Roth 401k option. Under that plan, you can contribute up to $18,000 to the Roth 401k, or up to $24,000 if you're age 50 or older. That will also make a Roth rollover easier once you do leave the company.
The RMD is a distribution from the plan, and that's where the money has to come from. You can't "pay" the RMD from a different account, like a bank account. The insurance company is required to distribute RMDs beginning at age 70.5, as long as the annuity was tax deferred. Of course, if the annuity was not a tax deferred account, then no RMDs will be required. If the insurance company told you that RMDs are required, then it's a tax deferred account.