RS Crum, Inc.
Ashley Bleckner is an Advisor with RS Crum and also works in collaboration with a number of the lead advisors in the areas of financial planning and client service. RS Crum specializes in providing objective financial advice to help clients manage, grow, and protect their assets during their working lives and through retirement. Ashley and the team has a mission to help people make sound financial decisions, accumulate and preserve wealth, and otherwise pursue their life goals without the burden of financial stress.
Prior to committing to RS Crum, Ashley spent over three years with a wealth management firm based in Toledo, Ohio serving as a Client Relationship Manager where she helped develop, coordinate, and implement financial plans and manage day-to-day client requests. Ashley takes great pride in her client relationships. Actively involved in the community, Ashley is a member of the Orange County FPA and CalCPA. Ashley has volunteered her time on a number of philanthropic projects, including WomanSAGE, “It’s Your Money,” Alzheimer’s Orange County, and is a co-founder of the Austin Kudzia Scholarship.
Ashley has a passion for travel, education and the arts. She has previously studied in Florence, Italy and has taught several college classes in Economics. Ashley has a Bachelor of Science in Business Economics from Miami University and a Masters of Arts in Economics from Bowling Green State University.
MA, Economics, Bowling Green State University
BS, Economics, Miami University (OH)
Assets Under Management:
R.S. Crum Inc. is a fee-only wealth advisory firm. Our services are directed primarily toward individuals or families who have accumulated significant net worth. For information regarding a specific service, please contact one of our advisors. SEC Disclosure: Investment advisory services offered through R.S. Crum Inc., a registered investment advisor. Treasury Circular 230 Disclosure. In order to comply with requirements imposed by the Internal Revenue Service, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended to be used, and cannot be used, for the purpose of (a) avoiding penalties under the Internal Revenue Code or (b) promoting, marketing, or recommending to another party any transaction or matter addressed herein. Privacy Notice. This message is intended for the person or entity to which it is addressed and contains information that may be confidential or exempt from disclosure law. You are hereby notified that copying or any use of this communication, except in accordance with its intended purpose, is strictly prohibited.
That is wonderful! Dividend stocks can be a great investment in an IRA.
In regards to costs, it depends on the stock(s) you are interested in and the custodian that you use. Here are some things to consider:
- Account fees - these are usually small, if there is one. Many times after a certain account balance, the fee is waived.
- Dividend stock price - this is the price that the stock is currently tradinig (will vary throughout the day)
- Alternative: mutual fund and/or ETF (that holds hundreds or thousands of dividend stocks in one holding) - will have fund exenses, but redcuces risks inherit with inidvidual company
- NOTE: Avoid load/commission funds
- Trading costs - these can be small or non-existent depending on the bank/custodian you use
In sum, you can start inviesting in dividends stocks in your personal IRA for relatively low costs.
Feel free to give me a call if you have follow up questions or would like to discuss further.
We have fielded this question from several clients recently. And, it is an understandable concern given the rising interest rate environment that we have witnessed over the last few years. We are also seeing some negative performance in bond prices for the first time in a while.
However, before answering the question of whether to sell your bonds, let’s first review why we have bonds in a portfolio.
Bonds play two specific roles: 1) to provide a predictable income stream, and 2) to provide an asset that moves in the opposite direction of the stock market, reducing volatility when stocks' prices decline. If this is the purpose of bonds, then we should continue to hold them given the relatively low risk with respect to the expected return.
Now let’s quickly dissect the differences in bonds, because not all bonds are created equal.
When it comes to credit quality, you want to own bonds with high ratings (high credit quality) when the stock market is experiencing volatility. This is because of the “flight to quality” which occurs as people jump from risky assets to safer ones. In the past, the safest investment during a stock downturn has been the 30-year treasury. However, this investment could prove to be a disaster in a rising interest rate environment since long-term bonds go down in value the most as interest rates rise. To balance these risks, I use high-quality, short-term bonds – providing protecting in both situations.
It’s important to remember that we shouldn’t necessarily be afraid of rising rates. In fact, we should applaud them. If you are a net saver or retired on a fixed income, then rising interest rates are advantageous because rising rates can provide a higher predictable income in the future. (Note: If you are a net debtor, then the opposite is true. In this scenario, lower interest rates would allow for you to more easily afford your debt payments.)
We recommend our clients remember news headlines are structured to get viewers, even at the cost of creating anxiety where it shouldn’t exist. Yes, interest rates are heading higher, but the story line should be the opposite of what we are reading. The news pundits should be pointing out that for the first time in nearly a decade, the economy is doing well. Wages and company profits are rising and stable. Interest rates are increasing and adjusting to this positive activity, reversing a long-term trend of pessimism.
The moral of the story is: I keep bonds in my portfolio because of their two primary roles (consistent income and negative correlation) are still critically important today.
Given your budget constraints, I recommend saving the property tax money in a high yield interest account (savings or money market). You won't recieve a signficifant amount of interest, but the principal is safe for the known upcoming expense.
Happy to chat further or discuss your specific circumstances.
A high level way to evaluate the productiveness of rental property is to compare the capitalization rate (cap rate). The cap rate is the ratio of net operating income to property value. While there are other variables to consider in the sale decision, this is a good starting point.
Cap rate = (Yearly rental income - taxes - insurance - repairs/maintance - management fee - utilities covered by you - miscellaneous expenses)/property value
Based on the values you provided, the cap rate would be 2.4% -> (15,600 - 10,200 - 1,200 - 720)/145,000
I would recommend connecting with a financial advisor to discuss this investment relative to other investments.
Congratulations on retirement!
There are a couple things to consider when making this decision:
- What will be your sources of income in retirement and what marginal tax bracket does that put you in? Any money you withdraw from your 401(k) (assuming its a traditional 401(k) with only pre-tax contributions), will be taxable and a large withdrawl could push you up into a higher marginal tax bracket.
- How much is your monthly mortgage payment, balance & interest rate? Are there any early payment penalties? If both are low and you can afford to continue making the payment with your retirement income, it may make sense to pay off using the current schedule.
- What are your current deductions? Will you use the standard deduction or itemize your deductions? Does the interest deduction help you?
- What are your outside assets?
I hope these questions get you thinking. I would recommend reaching out to a fee-only financial advisor that works on an hourly basis to help with these questions. In that case you can have a comprehensive review and not have to worry about conflicts of interest or investment management considerations.
All the best!