nVest Advisors, LLC
Jeremy Torgerson is the CEO at nVest Advisors, LLC, a registered investment advisor firm in Texas and Colorado, and has over 10 years of experience in the finance industry. Jeremy has been a small business owner for 20 years, and has mentored small business owners and startups for several years.
Jeremy is quoted reqularly in major US financial media. He also podcasts on financial topics, and blogs on his personal finance and success blogs, thinklikearichguy.com.
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Monthly Planning Subscription Fee (Varies by complexity)
Asset Management Fees (varies by program and custodian)
nVest Advisors, LLC, is a state-registered investment adviser in Texas and Colorado and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this profile shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by nVest Advisors in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.
Opinions expressed herein are solely those of nVest Advisors, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. nVest Advisors, LLC does not recommend specific financial advice without a signed service agreement with each client and does not provide professional tax or legal advice. This information does not represent a solicitation to complete a financial transaction with the firm.
Investopedia Profile: Jeremy Torgerson
Don't worry too much about what's IN the IRA accounts - that doesn't make them fundamentally different for your question. Whether you have stocks, bonds, funds, gold, real estate, or cash in the IRA is irrelevant, because the IRS only really worries about money movement in and out of IRA accounts, not what they are invested in.
Converting an IRA to a ROTH IRA is a relatively simple process, and your advisor or brokerage firm should be able to handle it for you. Essentially, what comes out of the IRA to fund the ROTH will become income to you this year, and you will pay income tax on it as it moves from the traditional, pre-tax IRA into the after-tax ROTH. I would have this discussion with your tax preparer, if you have one, before you do so, to make sure you don't create a significant tax problem because of other income sources you may have.
As far as your question about which account to switch, that's honestly just a personal preference. If you are wanting to reduce your exposure to precious metals (something I would advise that you don't have a signifcant percentage of your savings in, by the way), you might start with that one. I have no idea what's in your other account, but it's important for you, going forward, that you're diversified and not counting on any one asset class to outperform for years and years, despite with the TV pitchmen say.
Set your portfolio up assuming things will be volatile and the world will have challenges that we can't predict ahead of time. Many of us get guilty of giving ourselves hope or relying on emotions about an investment instead of structuring our money to "just let things happen". Don't be a contrarian. In my practice, we wouldn't let a client be too deeply invested in any one particular kind of asset because you need less day-to-day market volatility now that you're retired.
All my best! :)
Think long and hard before you do that.
First, any money taken out of your 401k is going to be added to your income for the year, and taxed along with it a regular income. Paying off the house will require a sizable lump sum distribution, all of which is going to be taxed at whatever your final income tax rate ends up being.
Second, the interest you pay on the mortgage is tax-deductible in most cases.
Third, the loss of gains in the 401k for 10 years will almost certainly be greater than any savings in interest you are making by paying off the loan early. Mortgage loans, especially a 10-year note, will have a pretty low interest rate (and again, that interest is usually tax-deductible anyway). Let's say you are paying 3% on this mortgage. Is that savings greater than the rate of return your that same money would earn in the 401k over the same 10 years? Most likely, the money would be much more by leaving it in the 401k, than by paying off the home.
If you plan to retire before the loan is paid off, you can always roll your 401k into an IRA and have the IRA supplement (or even fully pay) the mortgage each month. That's just a small amount coming out of the IRA each month (as the full balance continues to grow tax-deferred).
A rule I always give my clients is, take as little out of your retirement as you can, as often as you need to. This is instead of taking out huge amounts you may or may not need and losing the tax savings and future growth potential.
You can avoid the taxes but I have no idea about penalties or fees from your current account. Account closure or transfer fees are pretty common - it's the broker's way of "kissing you goodbye". :)
You can definitely avoid taxes by doing what is called a DIRECT ROLLOVER. This simply means your IRA balance goes DIRECTLY from your old company to your new one (and the check is never written in your name). When you just ask for the check, and go shopping for a new IRA, this is called an INDIRECT rollover, and the IRS isn't friendly to those.
Indirect rollovers are only allowed once per year per account, the IRS will take a 20% withholding tax that you will need to claw back in your return (but that money is already out of your IRA and has to be added back a little per year), and you only have 60 days in which to make that rollover happen.
It's MUCH less complicated and simpler to just do a direct rollover. Just open the new account, and the new custodian will help you initiate the rollover from the old one directly to your new account.
I hope this helped! My best to you.
A 4-year annuity? What was the surrender schedule? NO WAY it was only 4 years. I've never seen that in all of my years as an advisor.
Here's my concern:
You said this 4% return on an annuity was recommended by your advisor, but you also state you're a long-term aggressive investor. I'm not sure how much you invested in this annuity, but the market returns from 2015-2018 means you lost a considerable return on that money.
I often see investors make this mistake that an investment strategy must be "risk free" or "aggressive", with no gray area in between. A diversified portfolio of income-producing investments mixed with equities, combined with a short-term "needs" savings vehicle would do this adequately without having to give your broker a new commission on an annuity every few years.
I wish you every success, and happy (very soon) retirement!
I know you mentioned you were not compensated, but are you registered in this industry in anyway?
If you are not, and disclose as such, I think you can say just about anything you want. Lord knows, we see this all the time on financial blogs, and even shows like “Mad Money”, for which Jim Cramer is no longer registered, so he can make wild recommendations without any consequences (other than reputation).
If you are registered as a rep or RIA or insurance agent, you’re going to have to walk a very tight rope to objectively, transparently and carefully cover your bases in terms of the disclosures and performance and fees behind an individual fund. And CYA disclosures such as, “for education or entertainment purposes only” won’t save you from a regulator who believes you were acting in some way as a fiduciary to these unnamed, unsigned “clients”, or stop them from seeing what you were doing as soliciting in a state in which you are not registered. As a registered investment advisor, I would never recommend any specific investment without a signed client agreement for that reason.
All my best!