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
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This sounds like something worth talking to an attorney about. Inherited IRA Mistakes like this can have serious tax consequences. There is potentially huge liability for the bank if you can prove that the beneficiary information has been recieved and should have been processed by the bank.
I'm going to guess if you were working with a bank they likely will not be working under the Fiduciary Rule - which could their level of liability less.
Look through your records and see if their was beneficiary listed at any time. Or if you have any paperwork from them showing that they ever had a beneficiary on file.
Lesson for anyone else reading this make sure you keep your beneficiaries up to date!
You will not be able to contribute to a spousal IRA once your spouse is over 70.5 years old.
BUT YOU CAN DO A SPOUSAL ROTH IRA!!!! There are no age restrictions here. So good call to contribute here for tax free growth.
Best of Luck
The tax bill would be hefty......and obviously not recommended.
You would first off have a 10% penalty = $16,000
Asumming you have not other income - you will pay about 22% Federal income tax - say about $35,200. Would be lower if you actually had no income.....but I'm going to assuming you work. So federal income taxes would likely be in the 32-37% range.
Lastly you will also owe state income taxes in most states. That could be as high as 13.3% in California. Add a few more thousand to your total tax bill.
Add it all up and you could easily be losing half the $160k withdrawal to taxes. Which could translate into millions of dollars less in retirement income.
Things long and hard about if you can truly afford to make this move now.
It is never to early to get started. Depending on your goal for the money I'm 99% sure you would be better off investing in stocks. To keep fees consider a low cost index fund.
If you put in $1000 today and nothing else- and earned 10% you child would have over $700,000 when they turned 70. The magic of compounding interest.
If you can set up some type of automatic contribution.
Best of luck, your child with thank you when they are old enough to know to.
If you are in your 20s your money should be invested, not in a fixed interest bank account. Consider speaking with a fiduciary financial planner to set up an appropriate allocation for your age/ time frames and retirement needs.
The financial world is confusing, but there are ways to make it less stressfull.
Best of luck.