1080 Financial Group
Founding Partner / Financial Adviser
Stephen Rischall is an award winning financial advisor and public speaker. He has been recognized by InvestmentNews as one of the top "40 Under 40" in the financial advice industry and ranked by Investopedia in the top 10 of the Investopedia 100 Most Influential Advisors. Stephen has also been featured in the Wall Street Journal, Los Angeles Times and on live radio and television.
Stephen began investing his own money at the age of thirteen. While in college, he started his career in financial services while helping his mother recover from financial fraud. He earned his BS in Honors Finance at California State University Northridge and received a special commendation for managing the University Corporation Student Investment Fund. Since then he has continued his professional development by earning the CERTIFIED FINANCIAL PLANNER and Chartered Retirement Planning Counselor designations.
After college, Stephen worked for a large brokerage firm where he began to recognize how the industry was filled with conflicts of interest. He believed there had to be a better way to put clients best interest first. In 2015, with help from his business partner Matt, they launched 1080 Financial Group, a modern, fiduciary financial advice firm in Los Angeles, California.
Stephen enjoys actively serving the community through leadership on several boards of directors. In his free time he enjoys mountain biking, skiing, snowboarding and golf.
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:
Investment management and financial planning services offered through 1080 Financial Group, 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
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.
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
Yes, you can maintain the funds awarded to you as your own retirement funds. You’ll want to get a copy of a recent statement to see exactly how much is in the account, what type of an account it is, and the investment holdings.
Once you have that info, here’s what you can do to transfer the funds to a retirement account in your name.
- If your ex’s retirement funds are invested in an IRA or 401(k), then you must establish an IRA (Individual Retirement Account) for yourself. If these funds are coming from a Roth IRA or Roth 401(k), then you’ll need to setup a Roth IRA for yourself.
- Contact the financial institution(s) currently holding his account(s), explain the situation, and provide them with your divorce decree or QDRO (qualified domestic relations order).
- Submit transfer forms and any additional paperwork required by the financial institution to have your 50% transferred into the retirement account(s) you setup to receive the funds.
- Typically, they will perform a transfer in kind, meaning you will receive half of the investments currently in the account. Therefore, you’ll want to review the investments to determine if they make sense for you. I would highly encourage you to develop an investment strategy that is specific to you and not just blindly hold onto whatever your ex was invested in.
If you have specific questions or need assistance doing this, feel free to contact me directly and I can assist you.
Stephen Rischall, CRPC
The performance of any person’s investment account depends on the investments they hold inside of the account. If your friend really lost about 10% of her account value in the past year, it's probably not invested in a way that is aligned with her goals or comfort with risk seeing that she is complaining.
She should consider working with a professional, preferably a Fiduciary financial advisor to help her figure out a better long term investment strategy. A financial advisor that is a 100% fee-only Fiduciary puts their clients best interest first, is transparent with fees, and must disclose any conflicts of interest.
You are correct in saying the US stock market has held steady over the past year. This leads me to believe your friend has international investments (which in general haven’t performed well) or she is concentrated in only a few investments which unfortunately lost money last year.
I’m happy to offer your friend a second opinion on her investments, but I would need to review a recent statement and would help her first by figuring out her Risk Number.
Stephen Rischall, CRPC