Wes Shannon

CFP®, LUTCF
Retirement, Investing, Small Business
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155
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7
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“Wes has 32 years of experience in the financial services field, and is the founder of SJK Financial Planning, an independent registered investment advisory firm, fee-only practice.”
Firm:

SJK Financial Planning, L.L.C.

Job Title:

Managing Partner

Biography:

Wes started his career as an insurance agent for his family’s independent insurance agency in Fort Worth, Texas, where he was born and raised. He owned several businesses over the years in the financial services and other industries.  

After working decades in the insurance and financial services industry, Wes eventually left the insurance field to commit to financial planning and investment advising. Wes founded SJK Financial Planning, where SJK represents the initials of his children. 

Wes graduated with a  bachelor's degree in Business Administration from the University of North Texas majoring in Financial Planning. In addition to being a Certified Financial Planner™ Professional, Wes is a Life Underwriters Training Council Fellow (LUTCF). Wes is also an active member of the DFW chapter of the Financial Planning Association.

In his personal life, Wes has raised three children and seen them through college. He has been active in church, school, and professional organizations all his life. Wes enjoys the outdoors participating in backpacking, hunting, fishing, canoeing, and camping. He likes to cook, garden and read. He has a passion for old movies and is a Turner Classic Movie fan.

 

Education:

BA, Risk Management, Insurance, & Financial Services, The University of North Texas

Assets Under Management:

$12 million

Fee Structure:

Fee-Only
Asset-Based

CRD Number:

1673397

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  • Wes Shannon, CFP
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May 2017
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    Retirement, IRAs
How much of my retirement account can I convert to a Roth IRA?
84% of people found this answer helpful

A great question, that leads to a very useful strategy I have used with my clients, but it is a complicated strategy. You can convert from a traditional IRA, Rollover IRA, any amount each year to a Roth but you will have to pay taxes as ordinary income on the amount converted.  So your limit is based upon how much you want to pay in taxes. I find it is best to do a comprehensive review of the client's tax returns to properly identify what marginal tax bracket the client is currently in and how much more income can the client realize before moving into the next tax bracket. Remember, that for people over 65 on Medicare that their Medicare premiums are determined by their income so not only can the conversion increase income taxes but also possibly increase Medicare premium. The third concern is that the taxable amount of Social Security benefits is determined by income so the Roth conversion will also affect that calculation. So it is possible that a Roth conversion will increase three things: 1) Income taxes; 2) Medicare premiums; 3) Social Security amount taxed.  So you can see that it is a calculation that will require some expert tax advice. The good news is the IRS allows you to change your mind about the conversion and "back-it-out" before you file the next year's tax return (including extensions).  So if you do a conversion and find out that it is costing more than you considered you may undo part or all of the conversion.

With regards to the Required Minimum Distributions (RMD), the IRS does not allow the Roth conversion to satisfy the present year's RMD.  So it is a two step process; first, withdraw the RMD and calculate the new marginal tax rate and determine the amount available to the next tax bracket; then do a Roth conversion.  The Roth Conversion will reduce the amount of your traditional IRA therefore, future RMD's will be reduced because of the reduction in the IRA balance but the Roth conversion doesn't reduce the present RMD.

June 2016
    College Tuition, Debt, IRAs, Taxes
What is the best way to pay off graduate school debt using my 401(k)?
67% of people found this answer helpful
November 2017
    Investing, Starting Out
How do I choose a good index fund to invest in and where should I buy one?
67% of people found this answer helpful
October 2017
    Annuities, Taxes
What should my mother do with the commencement of her annuity?
67% of people found this answer helpful
September 2017
    Personal Finance, Annuities, End of Life
What should I be ready for when managing my mother's annuities as she gets older?
67% of people found this answer helpful
August 2017