Anthony Capital, LLC
Regional Vice President
Matthew J. Ure is Vice President of the Southwest Region of Anthony Capital, LLC. based out of San Antonio, TX. Working with Dave Anthony as an Investment Advisor Representative (IAR), he serves clients in both government and private sector to provide them with a promising financial future. Living in San Antonio, otherwise known as Military City, he has become especially expert in optimizing the retirement outlook of Military and Federal Employees. Matthew is an avid learner and believes life is to be lived attaining as much knowledge as possible. As such, providing clients a comprehensive financial education is pinnacle to his career. He has taught hundreds of seminars touching on subjects ranging from debt solutions, investing, Social Security, pensions, and various forms of insurance.
After meeting with a number of federal employees, Matthew recognized a huge need for benefits education and basic financial planning among government employees. To serve this need, he founded Federal Benefits and Retirement (fedbenretire.org) , an association for civil service employees dedicated to helping them better understand and utilize their benefits.
Matthew received an associates degree from Dixie State University and then went on to earn a Bachelor’s Degree from Brigham Young University, where he earned over an additional 240 credits in a wide variety of subjects. Matthew has taken numerous post-graduate courses including a 4 month stint in Medical School. It was there that his background in finance got the best of him and after conducting a cost to benefit analysis, he decided the $750,000 price-tag and 10 years of education and training would be very constraining on his desired future plans. He instead joined his father and two of his brothers in what was always his best subject in school- finance, and he hasn't looked back! Apart from formal education, Matthew served a two-year mission for his church in Thailand. He still speaks fluent Thai and enjoys traveling to Southeast Asia whenever the occasion permits. Matthew is the 8th of 11 children, which he will tell you was an education in and of itself.
When Matthew is not working you will find him spending time with his beautiful wife and his three rambunctious little boys. Like a true Texan, he enjoys any chance he gets to work with cattle and especially loves branding season. He is also involved with the Youth Program at his church and enjoys teaching young men life skills from fixing cars, cooking, building, shooting, survival skills, and the most manly of all, just plain hard work.
BA, Brigham Young University
Assets Under Management:
Great question! While I'd love to say simply "no" and "yes" to your questions respectively and let that be the end, I'm afraid the answer is rather "no, but..." and "yes."
Yes, if you are still working at or after age 70 1/2, you are not required to take out RMDs from your current employer plan until the year you retire. However, if you have other 401(k) plans or IRA accounts, or 403(b)s not rolled into your current employer account, you will need to take the IRS specified portion of your total combined account values NOT with your current employer and ensure that the specified amount is taken from any or all of the accounts collectively.
As a hypothetical example: You have $267,000 in your current employer 403(b), $10,000 in an IRA you setup, and $76,000 in an old 401(k) from a private school you taught at 30 years ago. The $267,000 is exempt but the $10,000 and $76,000 must be added together. You then use this $86,000 amount to figure total withdrawal necessary by dividing it by the age factor assigned by the IRS, (you can find the tables here: https://www.irs.gov/publications/p590b/index.html#en_US_2014_publink1000231236). Assuming an age of 72 at year end, a total of $3359.38 must be withdrawn from either the IRA, 401(k), or both before the end of the year to avoid the penalty.
On the second part of the question, you are correct. You can make contributions, as long as you have income earned from a job that you are currently working.
As always, if you have need of more specific advise you should consult a qualified financial planner. Nothing within this response should be construed as individual advice, but rather general financial information.
You generally want to purchase shares of the company being acquired. Conversely, the acquiring company's value will dip after the announcement of acquisition.
I'd have to agree with you. Though the period you are looking at includes the financial crisis, you started investing in the rebound years following the dot-com bubble which should have resulted in some great early returns. Proof of this is in the historical data for many other funds that had much better returns over the same period. You've actually received less than 2% annualized return assuming monthly compounding. I agree that moving from AXA to somewhere else should be a given. I'm not sure of your current employment status though, so depending on that- it's likely that your best option is to continue to invest in your 403(b), just with a different provider. This is because if you're still employed at the same school, you might not be able to close it or roll it over to an IRA just yet. Additionally, moving the money into a Roth IRA would also require not only a roll over, but a conversion which means taxation on the entire amount converted. If you are of age or if you have left the employment of that particular school, given the amount of money, it still might be best to leave it in a 403(b) or roll into your new employer's plan, as the case may be. Assuming you can move the money without penalty, the biggest deciding factor should be what your financial goals are, i.e. how you plan to utilize those particular funds in retirement.
The short answer to your question is: Yes, you can roll over a qualified plan from your employer into a traditional IRA.
The other question is, should you? Depending on the type of annuity, it could be a great way to get free from IRS debt- or a terrible retirement strategy if it is a generous pension.
If the $26,000 being offered, what is in the plan, or does it include an additional "bonus" from the employer attempting to buyout your right to a lifelong income at retirement?
Though not always sure-fire, if it is the latter, you really should spend some time crunching the numbers or employ a financial professional to do so for you, prior to taking the money out. Said differently, if it is such a good deal for you as a former employee- why is the company offering it? Generally, companies have moved away from pensions because it is a very long term liability that they will be paying for the rest of the employee's life. That makes their balance sheet look terrible to investors or acquiring companies. On the employee end, it is not uncommon to see someone who would receive $500-$800 a month for life after 55- 60 years of age. Then the question becomes, would you rather have $26,000 all at once, or $6000+ a year for life in retirement, guaranteed until you die? Those are pretty compelling numbers.
Again, those are the general questions you should consider asking before rolling the money over, but for advice specific to your situation, you should consult a qualified financial professional.
To begin, annuities can be very complex with several different types of annuities available and each of those generally having a number of subgroups. To really assess what will happen to a specific annuity after death (or even to understand its features prior obtaining one), a qualified, fiduciary financial advisor should be consulted.
(The following is not individual advice nor an exhaustive list of annuities and their features but rather an oversimplification for the sake of education.)
Let's split annuities into two parts: Immediate and Deferred. (These terms refer to when the annuity starts paying you money).
Immediate: One of the most common Immediate annuities is a Single Premium Immediate Annuity. These allow you to exchange a lump sum for a guaranteed payment for certain period such as 5, 10, or 20 years, or a lifetime (the lifetime option can be on joint lives as well meaning that the last person to die of the two original people named keeps getting the same monthly check). People with a very low risk tolerance or who have a very long life expectancy often find these appealing. What is sometimes misunderstood however is that once elected, the lump sum is no longer your asset, but rather the insurance company's asset. In other words, you don't own your money anymore. You traded it for a paycheck. This makes these less desirable for people with shorter life expectancies and those desiring to leave money to heirs. Another drawback that is often understated is the fact that only a small part of the money coming in is investment income- the vast majority of it is just your money coming back to you.
Hypothetical Immediate Annuity: Pay $100,000 to ABC insurance company. They now own the $100,000. In turn, they send you $500 a month for the rest of your life. But until you've received checks for 16.6 years, you've made no money but just been receiving the original $100,000 in payments. Often these do have return of premium riders or other potential benefits you can add, but each rider usually decreases the monthly payout thus stretching out how long it takes to get your own money back to you. For most immediate annuities, when you die your estate gets nothing and payments cease (unless you were still within the guaranteed period i.e. 10 year certain and you die at year 8 then the estate would pick up payments for the next 2 years until the 10 years are complete).
Deferred: These annuities are often similar to traditional investments in that you are not generally giving the money to the insurance company but rather letting them invest it for you. In return, you can be guaranteed returns at a fixed rate, guaranteed a rate within a specified range, or given a varying rate based upon market performance. These can be cashed out when you're done with them or can be annuitized which means you switch the money into payment mode. Unlike the the majority of immediate annuities, in payment mode on most deferred annuities you are still owner of the money but the amount you "own" is decreased by each payment of your money you receive. It is possible however to add a lifetime income rider to these so that the annuity cannot stop payments to you while alive even if the account value reaches $0 but these are almost always subject to an additional cost. Hypothetical Example of Deferred Annuity: Put $100,000 into annuity, wait 10 years to draw. At that point you can take out $135,000 lump sum (with taxes due on all growth if bank money (N/A if IRA money)), start paychecks of desired amount every month until money is gone, or if the rider was elected for lifetime income $500 a month for the rest of your life. The disadvantage of these is that they generally have surrender periods which means even though the company does not own your money, they have a right to use it for a specified period (7, 10, 15 years are most common). If you decide you want it back in that specified period or if a financial need comes up that requires withdrawals above the allowed percentage (often 10%), then you can pay penalties in excess of 12%! This means that in the $100,000 example above, you could lose up to $12,000 to the insurance company if you decide to stop the investment during the surrender period. Ouch!!
At the annuity owners death, any remaining money in the actual account goes to named beneficiaries. (It should be noted that if you elect the lifetime income option on these types of annuities, they will often have two amounts listed on your statements: one is the actual money in the account and the other is how much they are basing your monthly payment on. The first is liquid; cash in your pocket money. The second is really just a theoretical number for calculating your payment and does not pass to beneficiaries as a lump sum (usually).).