DRM Wealth Management, LLC
President Founder - Financial Planner
David Rae is the independent LA CFP®, AIF® to Lead Your Financial Team. We believe everyone can retire earlier and with more money than they ever thought possible.
David Rae, Certified Financial Planner®, Accredited Investment Fiduciary® and Wealth Manager positions his clients for prosperity.
Name one of the "100 Most Influential Financial Advisors" by Investopedia.
“Once you get your financial house in order,” he says, “It’s a lot easier for everything else–personal life, professional life, family life and recreational life–to fall into place too.”
Working with a wide diversity of clients for well over a decade, he has built a successful career developing comprehensive financial plans to meet life goals, retirement, tax planning, estate issues, portfolio revision, life insurance, portfolio management, business exit strategies and more. While based in Los Angeles, he serves clients across the country. At the same time, he enjoys a solid reputation as a smart, go-to financial guy for both mainstream and LGBT print, broadcast and online media.
David grew up Irvine, California. His father Mike Rae retired from a career as an NFL quarterback (USC, Raiders, Redskins, Buccaneers) while he was still in elementary school. This gave him a front row seat to retirement planning and money manners early on. His mother, Terri, was something of a financial genius who ran a tight ship, planned carefully, got the most bang for the buck and successfully avoided the financial traps that often snare former athletes and their families.
At the University of Redlands, David majored in Business and Musical Theatre, earning full-ride scholarships in both disciplines. A year studying abroad in Vienna, Austria – in addition to consistent and considerable amounts of world travel that he keeps up to this day – engendered a dimensional world view about peoples and cultures.
Life in finance
Financial planning has proven an excellent fit for fully engages David’s considerable math, social and communication skills. He began in 2003 as a Financial Advisor and hit the ground running. After completing the CFP’s rigorous two-year preparation program, in 2006 he passed the two-day CFP exam (the financial industry’s equivalent of the bar exam) with flying colors, earning him his professional certification. He achieved his Accredited Investment Fiduciary certification in 2015. He became President of DRM Wealth Management in 2017. This independent RIA specializes in helping the friends on the LGBT community reach their financial goals.
In addition to building his own business, David has always been active in helping others build their businesses as well. In 2004, he founded the Beverly Hills Breakfast Club chapter of BNI, an international networking group, which has grown today into the largest and wealthiest chapter in Southern California. He was also named an "Adviser with Heart" by Wealth Management Magazine.
“There’s a significant lack of financial literacy in the general population,” David reports, “Even among those who are very bright. This may be related to being phobic about math since so much about money is really about math too. My function is to translate what may seem to be overwhelming and confusing concepts and programs into something clear, understandable and attainable. Essentially it’s pretty simple. You have a dream or life goal? Great, let’s sit down together, plan a workable strategy on how to finance it and make it a reality.”
David Rae is the go to Financial Expert for the media. He has been seen, quoted and published in many national publications including Today Show Nightline, ABC News, CBS News, Fox News, NBC News, KTLA News, KCAL 9 News, Time Magazine, MSN Money, Men’s Health, NBC News, US News & World Report, Yahoo News and 401(K) Specialist Magazine and many more. He blogs weekly on financial issues for The Huffington Post where he is noted for his trenchant observations and spot-on wit. He is also a regular contributor to The Advocate Magazine and Investopedia blogs. David recently became a Personal Finance Contributor for Forbes.com. He also has his own personal finance blog Financial Planner LA
David has completed the 545 mile Aids Lifecycle bicycle ride from San Francisco to Los Angeles for seven years in a row becoming not only a top fundraiser personally but heading a team that raised over a million dollars for the organization. A longtime and enthusiastic resident of West Hollywood, he lives with his husband Ryne Meadors and their two chihuahuas.
BA, Business Adminstration, University of Redlands
Assets Under Management:
All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security investment or instrument or to participate in any particular trading strategy.
Securities and investment advisory services offered through DRM Wealth Management LLC Registered Investment Adviser. DRM Wealth Management LLC, TD Ameritrade, SEI and Investopedia are separate and unrelated companies. www.financialplannerla.com
Fiduciary Rule and Dodd Frank Video From ABC 7 News
Record Powerball Lottery What to do if you Win - VIDEO
Tax Reform and your Wallet NBC News with David Rae
How to get a Friend to Pay You Back KTLA Video
These 6 mistakes may cause you to pay more for LTC
#1: Doing nothing or waiting too long to act.
#2: Choosing your policy based on price not value.
#3: Not taking advantage of couples’ options.
#4: Not factoring in inflation.
#5: Not knowing exactly what you’re getting with your policy.
#6: Ignoring Hybrid Policies that may save you money or get you more coverage.
Don’t put your head in the sand, you are in your 50’s. At least have the LTC discussion with your trusted Fiduciary CFP®. I like to think of investing in your LTC plan now is guaranteeing yourself some TLC later. There is real value to knowing that you and your loved ones are appropriately covered.
Hope this info helps
Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA, SIPC, a Registered Investment Advisor. Trilogy Capital Trilogy Financial and NPC are separate and unrelated entities. The opinions voiced in this article are for general information only and do not constitute an endorsement by NPC. NPC does not provide tax advice. www,financialplannerLA.com
Your options will be severely limited since both of you have chronic illnesses. If just one of your had an illness, we could try and plan around it, heavily insure the healthier spouse.
If you are able to get coverage, look into Hybrid Life Insurance with Long Term care benefits (either a rider, or living benefit)
So called Hybrid Polices have been growing in popularity over the past few years. They often package Long Term Care coverage with Life Insurance or sometimes even annuities. I think shoppers are attracted to these policies because they often increase the odds of actually seeing benefits. With LTC, generally it’s use it or lose it. Personally, I’d rather not use it, but I still want a great value from my policy.
If you look at a life insurance policy with living benefits like a LTC rider and the death benefit, the question is whether we get Long Term Care coverage first. They may even include a cash value account which can grow tax free and come out tax free when handled properly. The upside is that life insurance has more protection from premium increases; the downside is you may end up with some extra fees to cover the life insurance cost.
If you aren't eligible for life insurance, then I would look into other options with Annuities that come with some type of additional Long Term Care coverage, that you don't have to go through medical underwriting to obtain.
Best of Luck,
A few things you want want to consider that will help you find the right Life Insurance Decisions for you. Sounds like for your question here, that the goal is to not just let this policy lapse, wasting the cash value, and getting no benefit out if the policy does lapse, if you live longer than expected.
1) Look at reducing the Face Value (Death Benefit on this policy). This will lower the insurance cost, and will help extend the coverage out further. You generally can drop the face amount a certain percentage each calendar year.
2) If you are able to get new insurance, you may want to consider looking into a 1035 exchange to a policy that has living benefits to help coverage for things like Terminal Illnesses or Long Term Care. You could get a new policy with a much smaller death benefit (to lower the cost) and hopefully earn a bit more interest from a newer policy.
3) Consider what you would be doing with the cash value if you pulled it out (and if taxes would be due). If you are just pulling it out, and then investing it in to some account, you also need to consider things like probate etc, if you aren't expected to spend most of all of the account when you are alive.
Hopefully this helps just a bit. There a wide variety of options depending your specific goals and needs.
Here are a few thoughts from my article 'Ballers Guide to Choosing a Financial Advisor"
The Big Five Questions Ballers ask when choosing a Financial Adviser
The Five questions anyone should ask before hiring a financial planner are:
- Do you trust them?
- Can they help you reach your financial goals?
- Do they have your best interests at heart?
- Are they a Certified Financial Planner™?
- Are they a Fiduciary?
A response of NO to any of these questions should be a deal breaker. For sure, there are many more questions to ask a financial advisor before actually hiring them—things like fee structure, experience, and investment philosophy– but these initial four are easy to answer and are non-negotiable in my book. So bearing this in mind, let’s see how the Ballers guys do.
Hope this points you in the right direction.
Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Adviser. Additional advisory services offered through Trilogy Capital, a Registered Investment Adviser. Trilogy Capital, Trilogy Financial and NPC are separate and unrelated companies. www.financialplannerLA.com
If your premiums "keep going up," on your universal life policy, you may either be paying more towards your cash value, or you may have begun under-funding the policy from the beginning.
Universal Life can be quite flexible in regards to when and how you pay premiums. While this can be a big advantage for when life happens, and life always happens, it can mean potentially higher premiums in the future if the interest rates aren't crediting as illustration (essentially that the interest rate your policy is earning is less than what was shown in the illustration).
Work with a Trusted CFP who can help guide you through the best course of action to keep as much benefit from your current policy, and find the best combination of coverage and cost, while also eliminating those pesky increase in premiums.
For more life insurance tips click here
Hope this is helpful,