Parsonex Advisory Services, Inc.
Jonathan Miller is the President & CEO of Parsonex Enterprises, Inc. and its affiliates.
Jonathan leads a team of financial advisors who manage over $250 Million for clients across the country. He personally services a select group of clients located near his home in Colorado and brings a breadth and depth of knowledge that few advisors can boast.
Miller is an enthusiastic entrepreneur and executive who specializes in creating and growing businesses and systems, recruiting, training and developing financial advisers and entrepreneurs, creating effective marketing and distribution systems, and building strong management teams.
Miller has built several companies from the ground up, including Parsonex Securities, an independent broker/dealer, which he founded in 2007, Parsonex Advisory Services, an SEC registered investment adviser, an independent insurance agency and a mortgage company which no longer operates. Miller has succeeded in a variety of endeavors and excels at leading people-centric organizations.
Having started several successful companies he brings both industry level investment expertise and entrepreneurial experience to business owners and industry leaders who are seeking financial advice.
Jonathan, his wife Jayme, and their two children live in the front range and are active in the community.
BA, Political Science, Iowa State University
Assets Under Management:
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I am going to answer your question a little differently than what most people consider conventional wisdom. I am basing this on what I wish I had done when younger and assuming that, like myself, you are in a career with a signficant upward income potential but possible periods of volatility.
First, yes, you absolutely want to have an emergency fund. The conventional wisdom on this is to keep the money in "defensive" type strategies. My wife, a few years ago, asked me why our signficant emergency funds were in defensive allocations. She explained that if it was a true emergency fund we really planned to NOT use the funds, so she suggested that we should have the money invested more long term but with liquidity if we needed it. We moved our emergency fund to a diversified stock portfolio (80/20) and have never touched it since. That was good advice.
Next, if you can fund both a Roth IRA and non-IRA investments, of course do both. You should definieltey max out your Roth IRA (or Roth 401k) because the advatnages are so signficant long term. Getting the match is worth it in your employer plan. However, after you have maxed out your company match, I would recommend investing all of it in a 100% diversified portoflio of stocks (you can use an ETF or mutual fund strategy) and building this up over time with consistent savings (not in an IRA.) There are a few reasons for this. 1) Liquid assets won't be penalized if you ever need to access the funds and emergencies do happen. 2) the growth on a tax deferred accout is ultimately taxed as current income, the highest tax instead of capital gains (a Roth IRA is not taxed on the growth after 59 1/2 so this is of course best.) 3) Your ability to leverage or pledge assets or borrow inexpensively through a line of credit for businesses, purchasing real estate or anything else you need to do in life long term depends on your balance sheet and pledgable assets (IRAs usually don't work nor do 401k's.) Of course tax planning is much more comprehensive and depends on lots of factors. But, one of the top secrets of the wealthy is that they have the ability to inexpensively borrow and invest in opportunities without liquidating long term wealth (ownership in stocks/companies). This isn't possible in an IRA.
The conventional wisdom other respondents have provided is correct, however, if I had the ability to advise certain clients over again from 20 years ago, I would have allocated more to non-tax deferred investments.
Congrats on getting a good job and at least you have the most important step right regardless...investing money.
A Roth IRA is a type of an account, a wrapper through which you have favorable tax treatment for retirement. How this functions, and its many benefits, are outlined in other good answers. The one thing to consider is that it is, of course, a retirement accounts, so except for the withdrawal provision of principal prior to 59 1/2, you need to remember that the benefits are for "retirement".
One risk of this account type selection would be if you are NOT intending to utilize the account for retirement. The second account type "risk" is dependent on your tax situation, how long the money will be in the account, and over what time period you will take withdrawals. There are plenty of online calculators that will help you enter some assumptions and calculate whether this account makes sense for you. Generlally speaking, if you have time on your side and are utilizing this account type to invest long term, there are many advantages for most investors.
The other major risks depend largely on the type of investments you utilize in such an account....stock, bonds, mutual funds, etf's, which types of investments in each, etc..
Hope that helps!
Yes, you should be able to roll over your 403(b) into an IRA if you have "seperated from service."
It depends on whether your plan is tax deferred (qualified) or not.
Most ESPPs that I have come across are tax deferred (qualfiied) plans. If this is the case, your cost basis is irrelevant since your contributions would have been "pre-tax" dollars in which case any withdrawals are taxed as current income. You should definitely rollover the account into an Individual Retirement Account and continue to manage the account (or have it mangaged for you) on a tax-deferred basis. Then you can take income and withdrawals at a time and place that makes sense for you. Normal retirement plan rules would apply to an account like this.
If it is a non-qualified plan, the custodian of the account should have some sort of cost-basis accounting for your shares that were sold and report this to both you and the IRS. In this case, if you already sold the shares, you are probably just looking at advanced tax and investment planning strategies going forward.
Meet wtih a financial advisor and CPA who can help you.
Hope that helps!
You will have a significant amount of losses with that investment strategy as it sounds like you would buy the same stock twice, losing money both times. I think you may be asking about deductibility of a loss you are taking and the answer is you wouldn't be able to deduct anything on the loss. If you sell a stock for a loss and buy it back within 30 days it is called a "wash-sale" and the loss is disallowed for claiming it from a tax purpose. It's not disallowed as a business strategy, but there would be no tax advantage to doing this.