The Wealth Coach for Women, Inc.
Certified Money Coach(CMC)®
Therese Nicklas is a Certified Money Coach(TM) at The Wealth Coach for Women, Inc, a fee-only Registered Investment Advisory firm. She is committed to helping smart, successful women learn how to make wise financial decisions. She knows coping with money issues is a struggle for many, even when they are successful in other areas of their life. The financial impact for women in transition from divorce, death of a spouse, caring for a family member or changing careers is profound. Often they were not the person handling the household finances and do not know where to begin. Given this, Therese's mission is to provide tools and resources to help them gain clarity and confidence so they can move forward with their lives.
Therese's Wealth Coaching process helps her clients identify what holds them back and move beyond these limitations. Her clients are bright, successful women. Many are entrepreneurs. They are brilliant at helping others but often lack confidence when it comes to money management and business expansion. Therese's distinct coaching program helps women solve common problems associated with choices from their past caused by unconscious money patterns. Money Coaching bridges the gap between behavioral finance and traditional Financial Planning. By identifying the bad habits that hold a person back and replacing them with positive behaviors, the client is empowered with smart money strategies that help them attain their goals.
Therese's Passion Inspired, Purpose Driven(TM) approach helps clients take some of the uncertainty out of tomorrow so they can live their life by design, not default. Together they utilize a holistic financial life planning process that consolidates the fractured advice they may receive from multiple sources. By coordinating the services of her client's financial team, the possibility of something significant falling through the cracks is minimized. Throughout the process, Therese holds their hand while holding them accountable.
Therese has been featured in the Wall Street Journal, Forbes Magazine, and more. She is a sought out speaker, serving as a subject matter expert for many healing arts, divorce mediators and grief counseling centers.
BS, Business Administration, Eastern Nazarene College
Certificate in Financial Planning, Boston University Center for Professional Education
Assets Under Management:
Investment advice offered through The Wealth Coach for Women, Inc.® a Registered Investment Advisory firm offering fee only advisory services in the State of Massachusetts and in other jurisdictions where exempted. Custodial services offered through TD Ameritrade Institutional, Member FINRA and SIPC. The Wealth Coach for Women, Inc. is a separate entity from TD Ameritrade Institutional. For a list of states where I am registered to do business, please visit www.wealthcoachforwomen.net. Third party posts found on this website do not reflect the view of TD Ameritrade Institutional and have not been reviewed by TD Ameritrade as to accuracy or completeness.
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I am so happy to see you asking this question before you receive the inheritance. If you google "sudden wealth" or "lottery winners", you will find that most people that receive sudden money are worse off financially within 2 years of receiving their windfall. My first recommendation is for you to find a CFP that specializes in financial education. Before you invest or spend a dime, work with a professional that will help you increase your financial wisdom to a level that will support having such a large amount of cash. Part of the process should include a holistic financial plan. That means the professional will work with you to build a plan that includes every aspect of your life's dreams, goals and aspirations. Your plan should not be stagnant and the professional should be someone that will not only tell you what you need to do, but show you how to do it. They should guide you while holding you accountable for the outcome. That will be your best first investment. Second, pay off your debt. Feel free to reach out privately if you want more information. My website is https://wealthcoachforwomen.net. Best of luck, and congrats!
A Solo 401(k) account is available to business owners that do not have employees, or the only employee is an immediate family member (parent, spouse, child). Do you own a business? If you do not, a Solo 401(k) account is not available to you. However, depending on your income, you might be eligible to start a Roth IRA. Depending on your age, you can maximize the contribution at either $5,500 or $6,500 if you are 50 or over.
A Roth IRA is funded with after tax money, but tax free when you withdraw it. The rules to get the tax free withdrawal status are the withdrawals happen after age 59 1/2 and you've had the Roth account for a minimum of 5 years. Provided you meet the tax free criteria, you can withdraw as a lump sum (or periodic distributions) tax free.
In general, I think converting portions of your traditional IRA to a Roth is a good idea for the reason you mentioned - reducing your future RMD. Assuming your RMD exceeds your financial needs, this can make sense. If you need all or more than your RMD, then converting may not be a good idea. I recommend speaking with your tax professional and your financial advisor. Ideally, they should be working together to help you determine the best solution for your distinct situation.
With a time frame of 2 to 3 years, your best way to save is in a savings account. Look for accounts that pay the best interest or look for a CD that matches your timeline. Usually, credit unions and online banks tend to pay the most competitive interest rates. I do not recommend investing in the market because if the market dropped, you probably would not have enough time to recover, delaying your goal of buying within 2 to 3 years. Personally, I don't think the potential for gain is worth the risk for loss with a short window of time.
Personally, I am a big fan of getting debt obligations satisfied quickly. Not knowing details of your finances, it is hard to answer, but I will try my best.
Do you have surplus cash flow now? Have you reviewed your household budget to try to make adjustments to increase your surplus? How long did it take you to build your savings to $40,000? Do you know how much you will need for a down payment and safety cushion?
Assuming you have surplus cash flow, I would recommend accelerating loan payments, rather than taking money out of savings. This will benefit you in 2 ways. First, you will reduce your debt. Next, you are demonstrating to a potential home lender that you are disciplined. If your surplus will allow you to satisfy the debt before you buy your home, that would be great. So, if you set a target of satisfying the debt in 12 months, increase your loan payment by $1,000 monthly. Keep in mind you are actually "paying" yourself the rate of interest by paying down the debt instead of paying interest to the lender. If your cash flow is sufficient, use anything over your increased debt payment to save toward your new home. Keep in mind it is very important you have a safety net saved that will not be used for the down payment.
Regarding where to put the $40,000, find a safe liquid savings vehicle. The rate of interest probably will not make a big difference for such a short term. If the rate of return is 1%, that will come out to approximately $40 a year in interest. Better than nothing, but not significant. Hope this helps!