The Wealth Coach for Women, Inc.
Certified Money Coach
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.
What Happens When Passion and Purpose Collide
Absolutely not! Never EVER borrow money to create an investmentment. Build your account from current cash flow. If your account earns 4%, that is the annual dividend rate, not monthly. Assuming this is accurate, your income from the portfolio will be $2,000 a year, not a month.
Please accept my condolenses for your mother's health. I was in the same boat a few years ago and understand how difficult this is. Your questions are difficult to answer without a little more information. The best answers could vary depending on what state you live in. Are any of your mother's assets in a trust? Have any assets been sheltered from Medicaid? Does she draw income from the annuity? Is the annuity out of surrender and one where you can draw the principle without restrictions? Is anyone living in the house?
Without knowing the answers to these questions, I would suggest looking into the annuity first. If you have flexibility and can withdraw any amount, this might be the easiest option. If you can establish monthly distributions to cover the cost of the nursing home, this will be easiest. The other option is to consult an elder law attorney and determine if she is eligible or can become eligible for assistance.
If you have an outstanding loan and stop making payments, the balance of the loan is taxable as income in the year you stop making payments. It does not impact the current balance of your 401k since it has already been withdrawn. If you roll over the remaining balance into an IRA, the rollover amount is not taxed. If you withdraw the amount and deposit it into a NON IRA (like a bank account for example) the amount you withdraw is taxed as ordinary income. The tax rate will be your current tax rate. If you are over 59.5, you will not incur a 10% penalty.
You might want to meet with the financial aid advisor at your school. Sometimes grad school loans include a cost of living stipend. If you only want money for tuition, you can ask how you should fill out the application to receive less. It is also possible you received the amount for the full school year. How did you plan to pay for next semester? If you were planning to borrow, use the $8,000 toward next semester. If you don't need it, you can either start paying your loan back or put it in a separate bank account to use for future semesters. If you think you will need to borrow again in the future, paying the loan back now might complicate things. I hope this helps.
The short answer to your question is "yes" if you are willing to pay cash for the house. But now I must put my Money Coach/Financial Planner hat on...
First, congrats on the inheritance. If it was due to the loss of a loved one, my condolonces for your loss. For someone to amass that amount of money, they had to be a disciplined saver, investor and live below their means. My first recommendation is to try to glean a life lesson from them. Too often I see inherited wealth evaporate because the person inheriting feels compelled to raise their lifestyle beyond what is normal for them. Based on the data you shared, it appears you and your wife have a comfortable but moderate lifestyle. Buying this house will elevate your lifestyle and the expenses that go with it considerably. Are you considering this house because it has income potential?
By purchasing a house for $950,000, you are buying something that eats up close to 50% of your inheritance. Is that really what you want to do? If the house is much larger than your current residence, do you really want the upkeep, taxes, utility bills etc. that will go along with the house? My professional advice would be for you to really look at all the expenses involved with buying this house. Regarding Social Security, my rule of thumb is to wait until you are full retirement age to draw. Starting at 62 reduces your payout by 25% for the rest of your life. If you and your wife have earned income, you will pay a large penalty on the social security income until you reach full retirement age. Since you are obviously not desparate for money, it does not make any sense for you to start your social security pension early. By making prudent, thoughtful decisions you will have a better chance of having this money last beyond your lifetime.