Anthony Capital, LLC
Matthew is an avid learner and as such, sees his role as a guide who helps clients as they navigate saving for retirement and spending in retirement. His training as an Retirement Management Analyst informs every aspect of his planning and centers every decision on the client. He has taught hundreds of seminars touching on subjects ranging from debt solutions, investing, Social Security, pensions, insurance, and other financial topics, with the emphasis being on what trade offs are made when each is selected.
Living in San Antonio, known as Military City USA, Matthew has become an expert in optimizing the financial lives of public as well as private sector employees. Matthew recognized a huge need for benefits education and basic financial planning among government employees. To serve this need, he started Federal Benefits and Retirement (fedbenretire.org) and teamed up with the nonprofit The Society for Financial Awareness to offer trainings and private consultations at no cost to federal employees. This collaboration has given thousands of federal employees access to fiduciary advice formerly reserved for the more affluent and has created millions in dollars of value for them and their families.
With everyone in the industry clamoring to proclaim their fiduciary status, Matthew is quick to point out that that actually requires more than honesty and transparency. Though without those one cannot claim to be advising, without a broad understanding of finance one cannot claim to be a true advisor.
Matthew is the 8th of 11 children, which he will tell you was an education in and of itself. He has graduated from Dixie State University and Brigham Young University, and has also taken numerous post-graduate courses including a 4 month stint in Medical School. He speaks fluent Thai and enjoys traveling whenever occasion permits. He enjoys being a father to 3 boys and husband to a beautiful and creative wife.
Brigham Young University
Assets Under Management:
Congratulations! That is really awesome.
Your question is one that many high net worth clients are struggling with and is certainly part of the reason that Bitcoin jumped so much this year- people were looking for alternatives to stocks and bonds.
While I don't heavily advocate for crypto-currencies, the idea of seeking investments that are not directly tied to the "market" is a sound idea though given the high valuations. Considering your sizable investable assets you have the advantage of being able to access private funds and other non-public ventures. Examples include real estate funds, oil and gas funds, and partnerships in private businesses, as well as even less traditional funds like buying legal settlements and making small business loans. These can provide significant returns but they also can provide much greater diversification from the various business cycles that plague the traditional markets. Experience and due diligence is highly important with these investments however.
Obviously, your goal should be to find someone who is competent and who you can trust. My opinion is that you will be best served by someone who works in wealth management and has alternative investment expertise. Wealth management is different from investing/ insurance guys, and even differ from financial planners in that they work solely with high net worth individuals to integrate all financial aspects, whether that is taxes, interest, or asset valuations, etc, into a comprehensive picture that provides the most value to you.
That said, while I'd love to help you, your situation is outside of my wheelhouse. Depending on your goals, I'd refer you to one of two people- Dave Anthony is more wealth builiding and uses alternatives, or Kirk Cassidy for charitable and retirement planning. They are both top 3 for most brilliant, creative,and innovative managers out of the thousands I've met. And perhaps even more importantly, they are straight shooting and squeeky clean.
I'm sorry to hear about your difficulties but you are smart to get ahead of the foreclosure so you can save any equity you have in your home.
As far as a distribution, assuming you mean from your 401k or IRA- Yes, you can take money out from it.
But you might not need to do a hardship withdrawal if your doctor has certified that you are disabled. That is one circumstance where the IRS allows distributions without penalty.
I hope that helps answer your question.
God bless you and your family
IRS rules state that if you have lived in the property for 2 out of the last 5 years, you would pay NO capital gains taxes on any increase in value up to $250,000 over what you had purchased the house for originally.
So in the scenario you presented, if you paid $150,000 for the townhouse and you sold it for $400,000 you would pay no taxes on the sale as long as you live there for at least the next 2 years. (If you're married and the house is in both names, you can exempt $250,000 x2 = $500,000 total from taxes).
Anything over the limit would cause your normal long term capital gains taxes to kick in for whatever tax bracket you are in currently.
Great question. Generally withdrawing early is frowned upon in financial circles- often because it is unwise for the client, sometimes because the manager is worried about assets under management. The underlying question is can I pay the taxman more right now so that I can pay the Bank less.
Let's look deeper at the numbers to determine what is right* for you (*this is hypothetical given I don't have all your financial information and is done in rough numbers for education purposes only).
If you withdraw $10,000 you will only take home roughly $7,500 after 15% tax and 10% penalty assuming you make ~$45,000 a year or less. If you need the full $10,000 and have it available in your IRA, then we would need to take $13,350 to get the $10,000 you need to payoff the card balances. Total cost = $3,350 taxes.
(Again, if you are making $97,000 or less that could be closer to $15,000 withdrawal with a $5,000 cost)
Pay $500 a month over the next 2 years to pay off the cards. Total cost = $1,709 interest
(However, if it takes you more than 3.8 years to pay off the loans then your total interest cost increases to $3,400!)
In summary, the rough numbers seem to suggest that you'd be better off cutting money out of some other part of your budget to set up an accelerated payment plan rather than take the withdrawal.
Great job getting retirement plans up and running right out of the gate!
Your current allocation to simple IRA is a great start and if that's all you can afford then sit tight. Just be sure your investments are more aggressively geared toward growth as you have plenty of years before retirement.
However, if you can spare a bit more (especially after January) then by all means put what you can spare away for later. Generally, younger people who can put more away in the early years get compounding interest on their side which really comes in handy if you later get married, have children, or become disabled. Planning so early in your career also gives you much better lifestyle options later in your career for taking lower paying jobs in better locations, switching to lower paying vocations your passionate about like teaching, more time for hobbies, or even early retirement. Remember, nobody every complains about having too much money at retirement!
Here are a couple of ideas for how that extra money could be put away:
1- You could increase your simple IRA contribution up to 7% and still not exceed the $12,500 annual limit. This is the most simple option and has the advantage of not having to pay taxes now.
2- You could open a Roth IRA with the extra money. This has the advantage of diversifying your retirement tax situation without affecting what you've been paying in taxes. Another advantage would be diversification of investment choices potentially over what is offered in your Simple IRA. (I generally default to this with people in your age category but that's just general advice).
As far as which option is best for you, how much, into what, where, and with who- all those questions if you can't figure out on your own, I'd have to say you'd need to sit down with someone to resolve.