Marian Financial Services, Inc.
President, Portfolio Manager
Richard Johnson is an Investment Adviser Representative working at Marian Financial Services Inc. in Jacksonville, FL and has over 30 years of experience in the finance industry.
Richard Allison Johnson is a 30 plus year veteran of the financial services industry. He currently is a partner in the Registered Investment Adviser firm Marian Financial Services, Inc. In addition, he owns First Coast Planning, LLC which is a Financial Planning firm and also a Registered Investment Adviser. Both firms share offices at 12724 Gran Bay Parkway West, Suite 410, Jacksonville, Florida 32258.
Richard currently holds four (4) professional designations: Chartered Advisor for Senior Living®, Certified Financial Planner®, Chartered Mutual Fund Counselor® and Registered Financial Consultant®. In addition, he holds both insurance and real estate licenses. He formerly held the Series 7, 9, 10, 24 and currently holds the Series 63 and 65 licenses.
Richard is a former NYSE Branch Manager for a major brokerage firm. In addition, he is also a former Registered Principal for independent brokerage firms.
Richard is the author of, 'Meet Wally Street. The Reason You're Stupid.' 1st and 2nd editions available at most ebook retailers.
Bachelor of Arts, University of Arkansas-Little Rock
Assets Under Management:
Flat fee retainers and assets under management.
First of all, this is not your friend. Second of all, you need to call the state securities regulator in your state and turn them in TODAY!!!. They could have already scammed several people out of millions of dollars and this needs to be stopped right now. It is highly likely to be a Ponzi scheme.
Advice for you is to live by these rules. Never buy anything that is not publicly traded and never buy anything that is not liquid. If the investment is not publicly traded then a red flag should immediately go up. Your investments must be in publicly traded investments only.
Never invest in something illiquid like "90-day perpetual note". Are you serious? This is the biggest bunch of hooey. They are crooks. Report them to authorities.
Your money should always be liquid, meaning that you should be able to get your money through a reputable firm like Fidelity, Schwab, TD Ameritrade in as little as two business days. Anything else and you are likely talking to an unscrupulous advisor, if not a Ponzi schemer.
Yes, but you have to take money out for 5 straight years in a series of subtantially equal payments. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions It is a calculation based on your age. For example, if you are say 57, then you look the factor from IRS Table I which is 27.9. See IRS publication 590-B (2017) page 46. Once you know the factor, then you take the full value of the IRA account and divide it by 27.9 and that is how much you have to take out. Depending on the size of your IRA, this may not be enough money for you.
The IRS page on this topic is located here:https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-substantially-equal-periodic-payments
If you are in a financial crisis, then it might be worthwhile to bite the bullet. You are at the end of the year, so only take what you think you will need through December 31st. If you have Electronic Funds Transfer setup on your IRA, then you can move money out of your IRA as needed until the end of the year. For example, if you need $2,000 right away, then take $2,222.22 out of your IRA which will net $2,000. You will need to setup an IRA distribution form with a Standing Letter of Authorization with your tax withholding. I would only choose 10% federal, because you are not going to owe any taxes other than the 10% penalty at your low income level. The standard deduction will eliminate any taxes.
You may want to talk to someone at the firm where you IRA is located for help.
Rick Johnson, CFP
Open a Roth IRA at Charles Schwab, Fidelity or TD Ameritrade. The Roth IRA allows penalty free cost basis withdrawals, so you can actually pull out more than $10,000 if you build it up higher. However, this needs to all be accountable cost basis, so keep good records of your contributions. Instead of increasing the 401(k) or continuing to the savings account at 2%, I would put all you can into the Roth IRA. You would be dollar cost averaging, so invest it in ETF's and do it yourself. I would put it in VTI, SPLV, RSP, or MOAT. The volatility will not matter if you stick to investing regularly every month no matter what the market does. After 5 years, you can pull out what you need for a down payment on the house. Cost basis can always be withdrawn from a Roth IRA without penalty, because the money you put in has already been taxed.
Since it is whole life, you probably will not have much in the way of taxes due, because whole life is the most expensive insurance. It is simply a matter of contributions paid in subtracted from your cash value. For example, if you have paid $5,000 in premiums and you have $4,000 in cash value, then you owe no taxes. If it was the reverse, where you paid in $4,000 and your cash value was $5,000, then you would owe ordinary income taxes on the $1,000 difference at your current tax bracket.
There are other caveats that could complicate the calculation like if you had previously taken some withdrawals. Generally, your withdrawals are taxed at 100% until you reach your cost basis level. Another example for this scenario would be where you paid $4,000 in premiums, your cash value was $7,000 and you had a prior withdrawal of $2,000 that you paid taxes on, then this would leave $1,000 potentially subject to ordinary income taxes.
Hope that helps.
Sorry that your parents passed away. God Bless you and your brother. You are correct that you need a financial adviser, but only go with a Registered Investment Adviser.
Before you can think about investing, you need to get this Roth IRA Inheritance done correctly. I'm not sure how long ago your parents passed away, but a clock may be ticking on the Inherited Roth IRA's.
There are three options with the Inherited Roth IRA. (This applies to each of you.)
- Open an Inherited Roth IRA and use the Life Expectancy Method - Required Minimum Distributions are mandatory and required to begin no later than 12/31 of the year following the death of the parent who previously owned the Roth IRA. The RMD on this is likely to be around $613 the first year. This is a calculation based on Table I rates (see IRS Publication 590b - page 45). It is best to hire a CPA to help you with this calculation. You will need one from now on.
- 5 year method - take all the money out in 5 years.
- Lump Sum method - take all the money out - (earnings may be taxable if Roth IRA was less than 5 years old.
If you choose the life expectancy method, then your money will grow tax free for your lifetime. If you take it out, guess what? It will not grow tax free. The $375,000 will be your cost basis in the Inherited Roth IRA and that is always accessible without penalty.
If any financial advisor wants to put your money into an annuity, RUN, don't walk away.
I would look for a Registered Investment Adviser who is only a Registered Investment Adviser and not affiliated with a brokerage firm. I would interview 3 of these firms and do background checks on them at http://adviserinfo.sec.gov. In addition, I would ask to see their Form ADV 2A & 2B documents before you meet with them. Take the time to read each and every line, because this is very important to your future to make a good decision. If you gut instinct tells you something that you do not like, then move on to somebody else. Go to the adviser's web sites. If their web site looks crappy, then move on to someone else. If they cannot take the time to put up a good web site, then they probably will not take the time to manage your investments properly.
It is infinitely more important to chose the right investment adviser, than to worry about how to invest it. I would talk to at least three different ones and if you feel you need to talk to more, then do so. You and your brother are good clients for any financial adviser, so you can be picky.
Rick Johnson, CASL, CFP, CMFC, RFC