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
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.
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.
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.
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.
Normally you are allowed to roll over your 403(b) into an IRA. However, before you do, make sure you understand the provisions of your 403(b). Is it an insurance policy? Will there be surrender penalties if you roll it over? Will you be giving up any type of living benefit or extended pension? Be certain you fully understand the potential costs associated with making the change. A Fiduciary Advisor will be able to help you navigate your options and help you make a decision that is in your best interest.