Northwoods Fiduciary Advisors
Founder & CEO
Corey Purkat, Founder and CEO of Northwoods Financial, can't remember the first fish he ever caught but it definitely was an experience that had a lasting impression, that's for sure.
Spending time on the water, in the woods, or on the road to wherever we were headed, provided the opportunity for Corey's dad to share his love for the outdoors with him. He taught Corey about the responsibility, stewardship, and integrity involved with being a sportsman, something that is echoed through many other households across Minnesota.
When Corey's grandfather took his dream-vacation to Alaska a number of years ago, he had a bittersweet feeling about it. On one hand, it was great to see the excitement on his face when he talked about it. On the other, it was disappointing that he wasn't able to take this trip until he was well over 70 years old or enjoy it the way he would have been able to if he had been much younger.
The reason Northwoods Financial Planning focuses on planning for retirement is because they want their clients to know that they don't have to wait until 70 years old to take a dream-vacation - proper planning and considering during a client's entire financial life will give them this flexibility.
Corey and his wife Jen live in Oakdale, MN with two beautiful daughters, Addison Vail & Carrington Alice.
Jen is an Early Childhood Education teacher in the local school district - every family that she works with is lucky to have someone as passionate as her on their side!
Cooking on the grill - anything really - is something Corey and Jen both enjoy and one of their favorite things to cook on the grill is hand-tossed BBQ Chicken Pizza.
BS, Finance, Winona State University
Betterment is a great option if investments were the only piece of your financial puzzle. Although "robo-advisor" is a familiar term these days, most if not all "robo-advisors" only provide investment advice - there are dozens if not hundreds of topics, scenarios, and considerations to think of when dealing with a person's finacial goals. That being said, paired with a solid, fee-only financial planner (i.e. they get paid on their advice and not on something they sell you), it's more and more common place to have 100% of your investable assets on the Betterment platform while working alongside that financial planner. As far as when you should start seeking advice, even though my opinion is slightly biased - is yesterday. Even if you are saving as well as you are, is there something that could be improved upon (tax efficiency, the actual investments in your 401(k), are you optimizing your health benefits such as a company HSA, etc.)? Take a look at "Thinking Wealth" www.thinkingwealth.com - a good friend of mine works with young professionals that are good savers and looking to keep fees in check. He uses Betterment for all of his clients too.
Good luck and keep up the good work on saving!
I 100% agree with the gentleman's answer before this.
Although we don't know your exact situation, moving money from a SIMPLE IRA to a whole life policy for an individual at the age of 60, in general, is advice that is not going to be in a client's best interest.
Whole Life Insurance policies pay some of the highest commissions out there when it comes to financial service products. If someone is providing tax advice and investment advice, yet they are not qualified or credentialed as such to hold themselves out as either, they are committing fraud. Especially since the transaction of a SIMPLE IRA to the insurance policy will be enough to trigger a tax event - you very well could be hit with a hefty tax bill this year while you're still working.
Life insurance is not an investment and it is wrong for someone to frame it or otherwise tell people that it is.
This is directly out of the Minnesota State Statutes on Life Insurance:
"When using an illustration in the sale of a life insurance policy, an insurer or its producers or other authorized representatives shall not:
(1) represent the policy as anything other than a life insurance policy;
(2) use or describe non-guaranteed elements in a manner that is misleading or has the capacity or tendency to mislead;"
Definitely have a second or even third opinion and make sure they are willing to adhere to a fiduciary responsibility - if they can't put it in writing, then they are not a fiduciary.
The first question is fairly straight forward; money that has never been taxed to begin with - all that growth, the reduced taxes throughout your career - is going to be taxable. Taxable, in that not all of it will be automatically be taxed, because there is a window of opportunity where some tax can be avoided or at least controlled.
But your other question is like most tax questions, it depends!
How much Social Security are you drawing?
Are you the only one drawing SS or do you have a spouse that will be adding to that?
Do you live in a state that is favorable to SS tax?
What's the probability that once you take $11,500, it's enough?
If you still have money in your 401(k), does that mean you're still working?
If you're not working anymore, is there a reason you're keeping your account in a 401(k) instead of moving it to an IRA in order to have more control?
Do you have other investments outside of your 401(k) that have even a slight possibility of impacting your income in the next year?
Do you need the $11,500 to live on or would it be a "surplus?"
The traditional tax person has two objectives: 1) to reduce your tax liability for last year (looking in the rear view mirror) and, 2) to bill more hours for next year. They don't want to rock the boat or tell you something you don't want to hear or ask the questions that are beyond the scope of the 1040, even though I'm confident that most of them know they should be doing those things. Do people "in general" want to pay less taxes? Of course. But advice that's in a tunnel and using past information as gospel for future outcomes, is not advice, it's irresponsible.
These are some things to consider, I think I've only scratched the surface of the variables, hopefully it's been helpful.
Selling the FFNOX wont trigger capital gains, if that's the tax implication you are referring to, yes. But for someone as young as yourself and highly motivated/interested/goal orieneted with your investments, your asset allocation seems more conservative than one would expect (but that's also off limited information).
The previous answer was spot on - focus on growth and keep saving! Something to add though, as the previous answer briefly mentioned with his comment about individual stock positions: an investment strategy that is dependent on income soley from dividend income would be most effective using individual stock positions exclusively. That in and of itself is a fairly involved strategy - I wont use the word sophisticated - that would need 100% focus and discipline, along with a huge amount of effort keeping track of everything. There are a number of other factors to consider as well - if this is the strategy you'd want to take on - whether you hire someone for this or do it yourself. Are the costs associated with acquiring the positions worth it (again paying someone for doing it or doing it yourself)? Are you getting the best price for the stock? Are you getting the best information? Do you have enough discretionary time to put into managing this workload on your own?
Having a tax efficient portfolio (i.e. all of your accounts combined is what I would consider your portfolio) is just important today as it is in the future. Make sure that you're maxing out your HSA accounts if youre eligible, especially since you're maxing out your 401(k) on the Roth side of things (i.e. no tax breaks in the current year).
Something else to consider about student loans is the manner in which you will start paying them back and what options are available for student loan forgiveness.
Questions you'll want to ask yourself: Should I consolidate them after graduating (i.e. rolling multiple loans into one)? Should I take a payment plan other than 10 years? There are Income Based or Repay As You Earn options available. Am I going to be working for a non-profit or in the private sector? Most, if not all, loan forgiveness programs are connected to public/non-profit organizations.
One of the nation's student loan gurus is Heather Jarvis and here is a link to her Resource & Tolls page on her website: http://askheatherjarvis.com/tools
More information that you may not even need, but more is better than not enough =) Good Luck!