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.
For a Free Copy of David Financial Book visit http://www.financialplannerla.com/torrance/
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 Nightline, ABC News, CBS News, Fox News, NBC News, KTLA News, KCAL 9 News, Time Magazine, MSN Money, Men’s Health, NBC News, The Today Show, 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. Recently, David was interviewed by Nightline. 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.
More info at www.davidraefp.com
or the top rated www.FinancialPlannerLA.com blog.
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, Trilogy Capital, TD Ameritrade, SEI and Investopedia are separate and unrelated companies. www.financialplannerla.com
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You bring up a great question that I hear a lot when people read about the 4% rule of thumb for retirement income. People often think they must spend the Required minimum distributions when they take them. This is not the cast. You would take 4% each year, and the rest would be reinvested into a taxable investment account.
RMDs are based on an average life expectancy so if you spent your RMD every year, the odd or running out of money before you run out of life would be HUGE for many retirees.
Reminder the "4% rule" is a just a rule of thumb- and not a guarantee of running out of money. Work with a CFP to make sure your have an appropriate spending plan for your need and life expectancy.
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
I know it can't be fun when see how much money your parents on spending on nursing home charges. What is the alternative? Do you want to care for them full time? Or head to the cheapest nursing home money can buy?
Based on your question you may find some type of Hybrid Life Insurance with Long Term Care Coverage, or straight long term care insurance coverage beneficial. You will have premiums (they won't be cheap) but it may allow you the freedom to enjoy some of your other saving now, knowing you have some of your Long Term Care cost covered with the insurance.
In general, as long as there is money to keep the policy solvent, you should be okay while waiting for the 1035 to clear. I would hope that this policy wouldn't be in danger of lapsing in the first year, over $300, but probably worth checking in with the insurance company to make sure you are ok.
Be prepared that 1035 exchanges can take some time, depending on the surrendering company. I believe they have 6 months to transfer the funds once they have everything in good order.
Best of luck.
First off, the cash value on a permanent life insurance policy works more like a ROTH IRA. If the policy is handled properly, the money will grow tax free and come out tax free. Without the contribution limits of a basic ROTH IRA.
The investment options available to you are generally limited on a permanent life insurance policy.
Many policies pay interest and you have no say in the investment options.
Some policies are "equity indexed" which will allow you some choices regarding how to allocate between the various indexes that they choose to offer.
Finally, there is Variable Universal Life- which will have a wider range of investment options, but still limited. Again, depending on the company, it may look like a list of choices similar to what you might find in your 401(k) plan.
You might also find this article of interest - 3 Ways to Cash in on Life Insurance for Retirement
Best of Luck.