Ark Royal Wealth Management
Mike Palmer has over 25 years experience in the trust and financial advisory business. His career includes financial advisory and senior management positions at Central Carolina Bank, First Union National Bank and Trust Company of the South. Mike is a graduate of Broughton High School and the University of North Carolina at Chapel Hill and is a CERTIFIED FINANCIAL PLANNER™ professional.
Mike was a founding member of the Dimensional Fund Advisors National Study Group (DFA NSG), comprised of ten advisors from several of the country’s leading independent Registered Investment Advisory firms. His civic involvement includes membership on the Administrative Board of his church, the UNC Educational Foundation’s Planned Giving Council and the Lacy Foundation Board. His past service includes serving on the boards of North Carolina Amateur Sports and the Raleigh Capitals Athletic Association.
Mike is an active member in several professional organizations including the National Association of Personal Financial Advisors (NAPFA) and the Wake County Estate Planning Council. In 2006 he was one of ten advisors from across the nation to be selected to serve on TIAA-CREF’s Board of Financial Advisors.
Mike is a frequent writer and speaker, having articles published on financial planning and investing. He has been quoted on a variety of financial planning topics by national publications including Investment News, The Wall Street Journal, Bloomberg Wealth Manager and SmartMoney. Mike and his wife, Meredith, have four children. He has coached youth baseball and basketball and enjoyed a decade long career as a Division I basketball referee.
Assets Under Management:
Raleigh NC Financial Planner – Ark Royal Wealth Management
Do You Find Personal Finance Puzzling? We Can Help
There's much to consider in this decision. How is your 25% owned? What are your income needs currently and in the future? What is the cost basis in the property? Will the properties require any capital improvements or significant maintenance expense in the coming years? What percentage of your total net worth does your interest in the commercial properites represent? In and of itself, having income producing real estate of this type is a good portfolio diversifier. It's hard to give specific guidance without knowing more about your situation. One observation: keeping any investment solely for sentimental reasons isn't a smart strategy. Neither the building nor the market care one iota about your loyalty or sentiment.
My recommendation would be none. What is the expected return of gold? What earnings stream do you own? An "investment" in gold is purely a speculation on the direction of its price. The long term returns of gold are well below that of the S&P 500. Warren Buffett wrote eloquently on this in his most recent shareholder letter, well worth reading.
I don't know enough about your situation to answer definitively. For the near term, you might be able to pay no federal tax depending on what your cash flow / living expenses are. What's probably a better strategy to consider is to try and keep your taxable income in the 15% bracket ($74,900 this year) over the next few years and perhaps consider partial Roth conversions (a small amount each year for the next 10 years). You face fairly substantial required minimum distributions at age 70, that fact coupled with Social Security payments likely makes it virtually impossible to avoid paying income taxes.
It sounds like you meet the requirements for what is known as a Rule of 55 distribution. There are several very specific rules that apply to this exception to the 10% penalty, so check with your tax professional for guidance. One important caveat: the distribution must be taken directly from the plan, NOT rolled into an IRA.
Without knowing the specifics of your income and tax bracket it is hard to make tailored recommendations. I would suggest looking at a possible qualified charitable distribution (QCD) directly from your IRA to a charity of your choice. This would reduce the taxable income associated with your IRA RMD. Alternatively, if you have non-IRA appreciated securities your might consider chunking several years worth of charitable contributions into a donor-advised fund. This might allow you to take a larger itemized deduction in this tax year and then take the standard deduction (perhaps in concert with the QCD mentioned above) in the following year.