AO Wealth Advisory
Financial Planner & Owner
Adam Obrecht obtained the Certified Financial PlannerTM designation in 2008 and is licensed in 19 states. He has successfully obtained securities licenses 7, 24, 51, 63 and 65. He also has insurance licenses with life, health, and variable lines. His professional involvement includes being a Financial Planning Association of Iowa member, Urbandale Chamber of Commerce member, and Kingdom Advisors qualified member.
Before starting his own wealth advisory firm, Adam was Manager of Investment Management Services at LWBJ Financial in West Des Moines, Iowa. There, he established a new division to manage wealth for high net worth individuals. For over five years Adam was Vice President at Broker Dealer Financial Services Corp. in West Des Moines, Iowa. He was responsible for the education of 250 representatives in packaged products and worked on advanced planning cases with the brokers.
The Des Moines Business Record named Adam to its Forty under 40 Class of 2008. Class members were recognized as Central Iowa's youthful business leaders that made significant impacts in the community. In 2009/2010 Adam was one of 40 professionals from around the state of Iowa that completed Leadership Iowa through the Association of Business and Industry. Monthly sessions were designed to deal with issues facing Iowa, including such topics as government, workforce development, education, and agriculture.
Adam is a speaker to area organizations and businesses on financial planning topics and has been quoted in Des Moines area newspapers and magazines. Adam was an adjunct professor at AIB College of Business and taught college education classes in the areas of investments and banking. He also taught a Dave Ramsey course entitled "Financial Peace University" to the members of the Urbandale community and Lutheran Church of Hope congregation.
Active in his community, Adam is an Urbandale School Board member, fundraising chair for the Urbandale Education Foundation, member of 100+ Men on a Mission, and member of Lutheran Church of Hope Johnston-Grimes. He resides in Urbandale, Iowa with his wife and sons.
BS, Agricultural Business, Iowa State University
Advisory services offered through Investment Advisors Corp., an SEC registered investment adviser. Securities offered through Broker Dealer Financial Services Corp., Member FINRA & SIPC.
The best would be to keep doing the company plan and then do the Roth or Traditional IRA on top of what you are already doing. This assumes you have the room in your budget to increase what you are putting away. But, to directly answer your question, going down to the 6% would be a very typical way to save for retirement if you plan to keep doing the 4% out side of the company. I would also check with a tax advisor to make sure you qualify for contributions to a Roth or on the deductibility of the IRA contributions outside of the plan. That would be one reason to keep putting the 10% into the work plan is you don’t have to worry about income qualifications.
One last thing is you could check with your work plan on if you can do your 10% as a Roth contribution into the work plan. This is separate from the Roth IRA but the tax treatment is similar. This may allow you to do what you are wanting to do all in the work plan instead of setting up an outside account.
First off, great job on starting to plan at your age, many of your peers are not thinking that far ahead. As for what to do, depends on your goals. If you goal is to be debt free then yes, pay off the mortgage with your extra dollars. You are saving in your 401K (wasn’t sure if you were putting in the match max or the plan maximum closer to $18,000 in 2016), have an emergency fund and building up some additional assets, then the next place to go is your mortgage.
If your goal is to not be debt free but to just find a home for the dollars. Look to maybe add an outside of work IRA or Roth IRA account as well as building up your outside investments a little more before attacking the debt. But personally I love debt free status.
In most cases yes the stock becomes worthless. The company’s assets and future income is used to pay the debts first and then shareholders could get what is left. But in most cases there is nothing left for the shareholders. Typically, new stock is issued once the company comes out of bankruptcy to recapitalize the company and keep operations going. While this is the typical way it happens, read through the material the company is providing about the bankruptcy to know for sure.
Check out the resources at https://www.xyplanningnetwork.com/ They have podcasts, blogs and a lot of information to help guide you through this. But I would also suggest reaching out to fee based firms in the area you want to live and ask for a meeting. You may find someone willing to bring you in and help you get started instead of having to create it from scratch.
Spousal benefits are 50% of the income earners benefit. If this amount is higher than your own benefit, then you get the higher of the two. The spousal benefit is not a straight addition to your own benefit, but a replacement of your benefit.
It sounds like you need to look at a restricted application for spousal benefits on your husband. While it may be a lower payment than him getting spousal benefits on you, this would allow your benefits to continue to increase until you are age 70. That is when you would file for your own and he could do spousal off of you if it is higher than 100% of his at that time.