Guided Wealth Management
Investment Advisor Representative
Since 2009, Jonathan Swanburg has been an Investment Advisor Representative at Tri-Star Advisors. Today he runs the firm's Guided Wealth Management service, offering financial planning and investment advice to working age professionals. He has an extensive fixed income background having started his career analyzing mortgage backed securities, municipal bonds, and structured notes. Jonathan's financial commentary has been featured in publications including Time Magazine, The Financial Times, The Wall Street Journal, and Financial Planning Magazine.
Jonathan attended college at Pepperdine University where he graduated with a Bachelor of Arts degree in Economics. During that time he was a macroeconomic teaching assistant, the President of Phi Alpha Delta, and a caddy at Riviera Country Club. From there, he went on to receive his Juris Doctorate and Master of Business Administration from Baylor University where he concentrated in Business Transactions and was recognized as the outstanding MBA graduate, top presenter at the Big XII case competition, and two-time winner of the Baylor MBA ethics case competition. Jonathan earned the Certified Financial Planner© designation in 2013 and is an active member of the State Bar of Texas.
Outside of work, Jonathan volunteers with the Houston Young Lawyers Association and enjoys playing golf, tennis, fishing, writing and spending time with his wife and two sons.
BA, Economics, Pepperdine University
JD / MBA, Baylor University
Assets Under Management:
Jonathan Swanburg is a Registered Representative offering securities through Calton & Associates, Inc. Member FINRA/SIPC and an Investment Advisor Representative offering advisory services through Tri-Star Advisors, an SEC registered investment adviser. Calton & Associates, Inc and Tri-Star Advisors are separate entities.
Jonathan Swanburg, Advisor Insights Interview
As long as the money is in an ERISA protected retirement account - like a 401k - it is protected and can’t be seized. If you cash out a 401k and move the funds to your checking account, the money is no longer protected by ERISA and could be subject to garnishment. Also, a mortgage lender will consider the student loan defaults when deciding whether to lend money for a new home. This means you will either not get the home loan or the lender will charge an incredibly high interest rate that will make the home purchase very unattractive.
Your best bet is to keep the money in the 401(k) or roll the balance into an IRA to keep the assets protected until you work out the other issues.
It sounds like you may be mixing up a few tax concepts. For the purpose of determining how much of your Social Security is taxed, the IRS will look at ALL income whether it is taxable, tax-free, passive or earned. If you’re married and your combined income (including muni bond income) is between $32 - $44k, you will likely pay income tax on up to 50% of your SS benefit. If you and your spouse have combined income above $44k, up to 85% of the SS will be taxed as ordinary income. However, the tax free muni bond income would continue to be tax free regardless of how the Social Security was being taxed.
For example, if you had $1,000,000 of tax free muni bond income and $30,000 of Social Security income, 85% of the $30,000 of Social Security benefit would be taxable at your ordinary income rate (since they will look at all of your combined income for determining the tax bill on your Social Security). The $1,000,000 of tax free muni income would still be tax free.
You should be able to get the shares to your son. However, the way you go about doing so will depend on your state and the specifics behind how and why you are receiving the shares. A few of the questions someone would need to know before answering your question:
- Do you live in a community property state?
- Were the shares received as part of your earned income while married?
- Is there a premarital agreement?
- Do the private shares have restrictions on who can own the shares?
- Would your son be an operator of the company?
- Do you want to gift the shares while you’re alive or only after you die?
- Are the shares’ value going to raise estate tax implications?
- Is your current husband okay with your plans?
If you husband is okay with everything, the shares are transferrable, and there are no estate tax implications, something as easy as updating a will or a post marital agreement may accomplish your goals. More complex situations would require more complex solutions. Best bet is to contact an estate attorney and make sure to work out the details.
Adding to the previous response, the contributions aren’t categorized as catch-up contributions until the employee reaches $18,000. Expanding on your example, if the employee has a salary of $100,000 and contributed 12% of her salary, all $12,000 would be counted as a regular contribution and the employer match would be 4% ($4,000) for total annual contributions of $16,000.
If the employee’s salary was $500,000 (and she is older than age 50) the max contribution would be $24,000 ($18,000 regular and $6,000 catch up). In this case, in order to complete the 4% match of $20,000, the employer would deposit $18,000 to match the regular and $2,000 towards the catch up.
This Investopedia answer from 2015 should provide additional color:
That’s a tricky one. Typically an investment banker at a big firm starts fresh out of undergrad as an analyst, works for two years, goes to business school and comes back as an associate. There aren’t many shortcuts and the hiring process is tough. Goldman & JP Morgan, for example, hire about 2% of the applicants.
The best thing you could do is talk to investment bankers. Network with people from your undergrad. Apply for a lot of internships. Also consider smaller banks, boutiques, or broker dealers that may get you a foot in the door.
Alternatively, if you’re into the circuitous route, you can work for a few years after undergrad in a field like consulting, get an MBA from a top business school, and then potentially bypass the analyst level. Also, a friend of mine was able to transition from big firm securities lawyer to investment banker but that is an expensive and risky path if you have no long term plans of practicing law.