Balanced Wealth Management
Rob Auclair is a 1996 graduate from Providence college with a degree in accountancy. Rob spent one year in Boston as a bond accountant with State Street Bank. In 1998, Rob joined Northwestern Mutual where he received new representative of the year along with reaching MDRT (million dollar round table) status. In 2005, Rob merged with Randall Financial Group to bring financial planning and investment strategies to the forefront of his practice. In 2006, Rob helped lead Randall Financial Group's purchase of King Tax Planning in Uxbridge, Massachusetts. The practice prepared over 500 returns annually along with integrating financial planning and investment planning with tax clients.
In 2015, Rob opened up Balanced Wealth Management where he integrates technology, investment planning, financial planning, with the psychology of motivating people to reach their life and financial goals. Rob specializes in portfolio management, 401K Fiduciary Fund Management, Individual Financial Plans, Tax and Investment Integration Planning. He is committed to building client relationships based on trust, competent professional advice, continual communication and prompt personal service. As with all successful professionals, he believes that a good financial plan is the foundation for long term financial success.
Rob was featured for four years on Fox Providence's Money Pros as the financial planning pro. In addition, he has been heard on WPRO, along with several appearances on Providence's ABC-6. He continues to be a resource for local media in regards to investments and financial planning.
BS, Accountancy, Providence College
First of all it depends how old you are and the type of asset risk you are willing to take. Let's assume you have 10 years or more until retirtement and have moderate risk (60% equity and 40% bonds). Trying to time your way into a market has the highest probability for loss. I had many clients over the last 5 years tell me the same thing and never imagined the market would keep going up. They have sat on cash for 5 years and have lost large amounts of asset appreciation.
Just set an allocation and keep buying. You will go through many cycles over the next 10,20 or 30 years. THe only sure thing is markets will go up and markets will go down. Be proactive and buy now. Remember keep your money working and keep adding when the market does correct.
Having a balanced approach to this is usually my answer to most clients. However if you are looking for the biggest tax break today I would lean a bit toward the Traditional. I really like the ROTH because my clients today don't have hefty ROTH balances and whenever they are looking for funds they always have to withhold taxes. This is not a happy moment for them. So a balance approach or a lean to tradition if you need a tax break today. The principal balance on the ROTH is penalty free. However that should not be a reason for using the ROTH. Retirement dollars should be for retirement.
In many cases you can combine several 401K's into retirement plans. To be sure you will want to call your current employer's HR dept. and ask if you can rollover. Then call your past companies HR dept. and request 401K rollover paperwork.
Keep in mind that there are some risks to keeping 40!K dollars at specific employers. (1) Investment limits and (2) possible freeing of funds if the company has financial trouble.
As an alternative you could move all inactive 401K's to a IRA rollover.
Generally, fees are on a sliding scale and usually range from 0.50%-1.50%. Be sure to know if you pay maintenance fees, account closing fees, cost to trade, etc. Not only is knowing the charges important, but it is important to know what you get.
For example, someone who charges 1% may never even see you and someone who charges 1.25% may see you often, provide tax services, estate planning, insurance, etc.
If you take the lump sum, the following scenario might be worth a look:
$500,000 invested for 20 years at an assumed 8% would produce $50,926 per year. That is definitely an increase from the $37K, however be aware of the two variables (1) rate of return and (2)DISCIPLINE to not take any money earlier.
Taking the $37K per year would guarantee everything. You are sacrificing $13K per year for the guarantee.
So I think you need to make a call on if you are disciplined and smart about investment management, or if the guarantees make more sense for you.