RS Crum, Inc.
Mark Rylance is a Principal and lead advisor at RS Crum, Inc. Mark is passionate about helping people make good financial decisions, both on the investment side as well as other financial planning areas (estate planning, tax, risk management, etc.). Mark always works on a fee only (no commission) basis which helps eliminate conflicts of interest.
Mark joined RS Crum in 2003 after spending six years with Merrill Lynch. Actively involved in the community, Mark is a past President and member of the Orange County FPA, a member of both NAPFA and the Sudden Money Institute, and is a Charter Board Member of The Center for Investment and Wealth Management at UC Irvine. Mr. Rylance has volunteered his time on a number of philanthropic projects, including Advisors in Philanthropy (AIP), Junior Achievement, Working Wardrobes, the Ronald Simon Foundation, “It’s Your Money” and Interval House.
Mark has volunteered his time on a number of philanthropic projects, including Advisors in Philanthropy (AIP), Junior Achievement, Working Wardrobes, the Ronald Simon Foundation, and “It’s Your Money”. Mark is a graduate of the University of Arizona with a Bachelor of Science degree in business administration. He is married and lives in San Clemente with his wife Holly and their two children Avery and Evan.
BS, Business Administration, University of Arizona
Assets Under Management:
I suggest opening an account with Charles Schwab and start a monthly investment plan with the amount that you can afford. They have proprietary Schwab One exchange traded funds that have zero transaction costs. I believe they also waive the $1,000 minimum account size if you set up an automatic investment program. They have 200 low cost investment options. The most important thing is to take action and get it set up. It will be fun to watch it grow and you can increase your contributions as your income rises.
Trying to predict the short-term direction of stocks markets has proven to be one of the most dangerous actions an investor can make because markets can run to the upside much longer than anyone can anticipate. It reminds me of the quote "markets can remain irrational for longer than you can stay solvent." Predicting the short-term direction of markets is what we call market timing. The problem with market timing is that you have to be right on your timing 100% of the time. You have to be right when you sell, you have to be right when you buy, and this cycle goes on forever. Those who have correctly predicted short-term swings in stocks in the past are more lucky than good.
If you are worried about a potential drop in the stock market, then take a look at how much you have in stocks and the risk associated with that percentage and make adjustments accordingly. For example, if you are currently in 60% stocks, instead of selling all your stocks and going to cash, I would recommend you adjust your stock percentage down to a comfortable level (maybe 40%-50%). This not only reduces the volatility of your portfolio (as well as potential returns), but it also allows you to feel good about taking action. I always tell clients that are hesitant about buying or selling an investment to buy or sell half of what they are thinking. This insures that you will never be 100% right, or 100% wrong in your timing.
I would suggest that you not invest in sector ETFs unless you have some investment experience or at least have a good understanding of the risk and return attributes of the investment. Sure, you can make a lot of money if your timing is right, but you can also lose a lot of money. My suggestion is to take a look at the past volatility of some sector ETFs to understand the risk. I would take a look at how the energy ETFs performed in 2015-2016, which were extremely volatile.
I think it is perfectly acceptable to tilt your portfolio towards an under-weighting or over-weighting of a sector based on your hunch, but be careful to monitor it closely. I would also suggest that you track your performance versus a traditional benchmark to see how your performance compares to how an index fund would have performed during the same period.
If a spouse is the primary beneficiary of your IRA, at your death, the IRA can be rolled over to the surviving spouse's own individual IRA. The surviving spouse can name their own beneficiaries and they will be subject to normal IRA rules. The surviving spouse will need to take required minimum distributions (RMD's) at age 70 1/2, based on the IRS life expectancy table. Withdrawals from IRA accounts are subject to ordinary income tax rates, not capital gains rates. The only exception is if you made a non-deductible contribution to an IRA, that portion would not be subject to any tax.
If a non-spouse inherits an IRA, such as the daughter in this case, they will need to open an inherited IRA account and will be forced to take required minimum distributions immediately, based on the beneficiary's life expectancy. No special tax is assessed for the daughter except ordinary income tax if money is withdrawn from the account.
This information is from the social security website:
"If you’re younger than full retirement age during all of 2016, we must deduct $1 from your benefits for each $2 you earn above $15,720. "If you reach full retirement age during 2016, we must deduct $1 from your benefits for each $3 you earn above $41,880 until the month you reach full retirement age."
Determining when and how to claim security benefits is a very complicated financial planning issue. It is highly recommended that you consult with a Certified Financial Planner or directly with a representative from the social security office.