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)
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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.
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! :)
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!
Two things come to mind.
First, create the discipline of adding to the account regularly through a monthly ACH or payroll deduction. This helps you through a concept called "Dollar Cost Averaging", which means you are buying the same amount on the same day each month regardless of market conditions (instead of trying to figure out when the timing is good to make a purchase). It's not a perfect system but it HAS been proven to lower your average cost per share over time (which makes profit come faster).
Second, the way to diversify a small amount of money is to buy a quality stock FUND rather than individual stocks. I'd recommend a quality index fund or ETF, and just keep adding to that fund.
Finally, small amounts of money means you need to keep transaction costs as low as possible, so avoid actively-managed funds sold by retail fund companies for now. You should not use a fund that has up-front sales charges or ongoing management fees, because that will drag down your returns, and over time, that can mean tens or hundreds of thousands of dollars lost to investment fees. Just pick a low-cost fund that spreads your risk out to what's appropriate for you, and stick with it.
All my best!
That depends entirely on the fund. Some do, but many do not as long as you establish a monthly contribution schedule of some sort.
What’s far more important, in my opinion, is to make sure you are not overpaying for those funds.
Very carefully examine not only the up-front sales charges of these funds, But also their annual management and marketing fees. You do not have to pay them.
As a young person just getting started, overpaying for investments for your entire working life can literally sap hundreds of thousands of dollars away from your investment performance.
Also, just getting started, there is no need for you to find an actively managed fund to begin with. No research has proven that active fund managers can outperform the markets or their benchmarks for extended periods of time. So don’t pay their extra management fees.
Find a good, low-cost, quality index fund at a discount brokerage and begin there. Don’t try to get fancy and don’t try to be counterintuitive. Just get in. Time in the market is ultimately what matters.
And may may I add, I’m very proud of you for getting started so young!
All my best.
For some people, the automated, low-cost option IS the best option, but many others want and need the advice and coaching of an advisor, because my job as an advisor was MUCH more than just managing your investment accounts. For example, all of my clients recieve financial planning services if we manage investment accounts for them (at no additional cost). We get to know you and stay alongside you throughout the years as your life circumstances (death, job change, new additions to the family, divorce, marriage, aging parents, inheritance, etc.) change. It's more of a coaching or shepherding experience for our clients, and it's a relationship that deepends over time. Many of my clients are now very good friends.
One good example of why you might want an adivsor is - how are you feeling watching the markets bounce around right now? Does it worry you? Make you nervous? Make you want to get out of the markets?
Helping to manage your emotions and stay on track is one of the most important jobs a human advisor will do for you. A Robo will only follow orders, and you can steer yourself off a cliff letting emotions make those money decisions.
All my best!