Jillian Nel

CFP®, CDFA™
Personal Finance, Retirement, Insurance
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“Jillian Nel, a CERTIFIED FINANCIAL PLANNER™, directs a financial planning practice for Legacy Asset Management, Inc. Jillian is committed to educating and empowering clients and the general public about the importance of financial planning.”
Firm:

Legacy Asset Management

Job Title:

Principal & Director of Financial Planning

Biography:
Education:

BS, Business Administration, University of Colorado at Boulder

Assets Under Management:

$340 million

Fee Structure:

Asset-Based

CRD Number:

5055280

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December 2017
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December 2017

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    Retirement, IRAs, Retirement Plans, Women & Money
Should I convert my two 403(b) accounts into a Roth IRA?
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Consolidating accounts from former employers is a great idea.  This keeps costs down and is a lot easier to manage the investments.  Where the money should go depends upon your overall tax picture. If you convert your 403B accounts to a Roth IRA, the total amount converted will be taxed at ordinary income rates.  The company holding the 403B accounts will send you 1099s that you will have to add to your tax return.  As such, you should add up all of your income and deductions from various sources to determine how much taxes will be owed on the converted amounts.  

That being said - getting as much of your retirement savings into a Roth as soon as you can will be hugely beneficial to you since you are young.  Because the money that goes into a Roth IRA is after tax - the deposits grow tax free so long as the account has been open 5 years and you wait to withdraw money after you attain the age of 59 and a half. Thus, consider the many years of compounded growth between now and your early 60s.   You will want to invest your Roth deposits for long term growth in order to capture as much tax-exempt earnings as possible. 

If you keep the money in the 403Bs, any growth over time is taxable when you draw it out of the account in retirement.  

If the taxes owed on converting the full amounts to Roth this year turn out to be excessive and too expensive, you can consider converting them in smaller amounts overtime so that the tax burden is reduced.  This would be a balanced way to control the tax cost while adding deposits to a vehicle with tax exempt growth.  

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    Retirement, Social Security
Are Social Security benefits withheld because of excess earnings returned to you in monthly installments when you reach full retirement age? 
100% of people found this answer helpful
June 2018
    Insurance
Are there disadvantages to having both a flexible spending account (FSA) and a health savings account (HSA)?
100% of people found this answer helpful
May 2018
    Retirement, Social Security
How do I determine the expected benefit amount I will receive from Social Security if I retire at 59.5 years old instead of the projected 67 years old?
50% of people found this answer helpful
March 2018
    Retirement, Retirement Savings, Retirement Living
How much money should I withdraw from my retirement account to live comfortably?
36% of people found this answer helpful
September 2017