Navalign Wealth Partners
Partner / Financial Planner
Stephen Rischall is an award winning fiduciary financial planner and public speaker. He has been recognized by InvestmentNews as a "40 Under 40" honoree and by Investopedia as a "Top 100 Most Influential Advisor". Stephen has also been featured in the Wall Street Journal, Los Angeles Times and on live radio and television.
Stephen began investing as a teenager and began his career in financial services while in college. Upon graduating, he earned a special honors commendation for his help in managing the University Corporation Student Investment Fund. He continued his professional development by earning the CERTIFIED FINANCIAL PLANNER™ and CHARTERED RETIREMENT PLANNING COUNSELOR™ designations.
After working several years for large Wall Street brokerage firms he realized how the industry was filled with conflicts of interest and he believed there had to be a better way. This lead Stephen to begin building his independent practice which eventually became Navalign Wealth Partners, a modern fiduciary financial planning and investment management company.
Stephen enjoys being an active leader in his community and has served on several non-profit boards. In his free time hey enjoys the outdoors; skiing, snowboarding and mountain biking.
B.S. - Honors Finance & Financial Management Services, California State University Northridge
Chartered Retirement Planning Counselor, College for Financial Planning
Certified Financial Planner Required Education, Kaplan University
Assets Under Management:
Financial planning and investment management services offered through Navalign, LLC a Registered Investment Adviser.
Investopedia Advisor Insights - Stephen Rischall
The highest possible FICO score is 850, the lowest is 300.
Your credit score is calculated from your credit report and there are many different ways of doing this. Here is a good post about your credit report versus credit score.
The concept behind the FICO score comes from the Fair Isaac Corporation, they apply different weightings to components of your credit report such as:
- Payment history
- Accounts owed
- Length of credit history
- New credit
- Credit mix
In general, a FICO credit score above 650 is considered good, although many people strive to be above 750. It is practically impossible to score a perfect 850 FICO score because there are a lot of different items from your credit report which go into calculating your FICO score. Keep in mind that different lenders (mortgage, credit card, automobile loan) will use different methods of credit scoring to assess your credit risk.
Stephen Rischall, CRPC
You cannot directly transfer stock from a taxable account into a Roth IRA. Roth contributions are made using after tax dollars.
You would need to first sell the stock in the taxable account and then you could transfer the cash proceeds to your Roth IRA account. You could, of course, re-purchase the same stocks in the Roth IRA, but you still end up paying all taxes due on investment gains from what was sold in the taxable account.
Stephen Rischall, CRPC
1080 Financial Group
A traditional IRA and 401(k) are similar in terms of how they are treated for taxes. The main differences are contribution limits, access to funds, and eligibility.
Both the IRA and 401(k) are retirement accounts and the IRS provides special tax benefits for money contributed and held in these respective account types. Funds invested in both will grow tax deferred, and typically investors receive an income tax deduction for the tax year in which they make contributions. Your ability to receive a tax deduction for contributions to an IRA depends on your tax situation, here is information about deductions for IRA contributions from the IRS.
You can contribute more to a 401(k) each year than you can to an IRA and you can contribute to both in any given year. Furthermore, if you are over the age of 50, you can make additional “catch up contributions”. Below are the 2016/2017 annual personal contribution limits published by the IRS:
|With Age 50+ Catch Up||$6,500||$24,000|
If you withdraw funds from an IRA or 401(k) before age 59 ½, the IRS will assess a 10% tax penalty in addition to income taxes owed on the funds disbursed. Some 401(k) plans may offer loans, which allows you to access a portion of your 401(k) account in the form of a loan, which you are expected to pay back to yourself. If you don’t pay it back, it will be considered a withdrawal and you may be subject to the early withdrawal penalty based on your age at the time of taking the loan. IRA accounts do not allow loans.
The key factor of being able to contribute to a 401(k) is having access to one. Anyone can setup an IRA for themselves, but a 401(k) is a group retirement plan setup by an employer. If you are an entrepreneur or a small business owner, your business can setup a plan for you. If you are an employee, it would be up to your employer group to offer a 401(k) plan.
There are many other differences in terms of maintaining a 401(k) which is subject to ERISA and entails all sorts of additional reporting, testing, and compliance each year. An IRA is much more simple to setup and does not involve any of this additional reporting or annual administration.
Yes, technically everyone qualifies for a Backdoor Roth IRA. This refers to a strategy by which someone (regardless of income or being covered by employer sponsored plans) makes a non-deductible IRA contribution and then immediately converts the funds to a Roth IRA.
The pro-rata rule only applies to IRA assets. If all of your pre-tax funds are in qualified employer plans, then the rule is not applicable. If you are concerned about the pro-rata rule and participate in a plan which allows for a roll-in from IRA or other qualified plans, you may want to consider consolidating all of your pre-tax contributions into a single 401(k) account. If you are self-employed, you can accomplish the same thing by establishing a Solo 401(k) and consolidating your pre-tax funds there.
This will avoid the pro-rata rule altogether and make keeping track of all your pre-tax, non-deductible, and Roth contributions much easier over the long run.
You are still limited to the annual Traditional/Roth IRA contribution limits when making non-deductible contributions. Currently in 2016, the maximum annual contribution any one person may make is $5,500. If you are over the age of 50, you may make an additional $1,000 catch up contribution for a grand total of $6,500.
Stephen Rischall, CRPC
If you are restricted from accessing your vested 401(k) funds, that is indeed illegal. At all times, you have full rights to withdraw all of your contributions made to the plan in addition to fully vested employer matching contributions, if applicable. Be aware, there may be tax ramifications and penalties assed by the IRS depending on your specific situation.
In the event the plan sponsor is changing record keepers, there is a blackout period in which funds cannot be changed or accessed in any way. This is legal and notices must be provided to active participants at least 30 days prior to the blackout start date.
You may want to call again and speak with a supervisor to clarify your request. If they are unable to explain why you are restricted from accessing the funds, you may want to consider submitting a complaint to the Department of Labor here:
Stephen Rischall, CRPC