Karstens Investment Counsel, Inc.
Ryne joined Karstens Investment Counsel in 2016. He has worked in the field of Investments and Finance since 2011 and has experience ranging from large institutional firms to individual wealth management. He received his degree in Financial Management from Hillsdale College in Michigan, where he also studied Economics and History. Ryne is very involved in the community. He serves on the Board for Angels Among Us, a local Non-Profit for children suffering with cancer. He is also on the Advisory Board for First State Bank. In addition, he is the President of Young Catholic Professionals. Ryne lives in Omaha, Nebraska. His only claim to fame is that he was named after a notable Chicago Cubs player, Ryne Sandberg.
At Karstens Investment Counsel (KIC), Ryne and his team recognize that each investor is unique and therefore each investment plan should also be unique. Their recommendations are tailored to each client’s long-term goals and objectives, risk tolerance, need for cash flow, and tax situation. Their clients are the first priority.
Ryne believes that a client is best served by utilizing a single advisor who is aware of, and takes into account, the entirety of that client’s financial situation. At KIC, Ryne acts as client's Chief Financial Officer. As personal CFO, it is his job to help his clients manage their financial complexities, from investments to tax planning, insurance needs to retirement planning, and estate planning and beyond.
BS, Financial Management, Hillsdale College
Adivsors charge fees in a variety of different ways. A few that you might expect to see would be an asset based fee, hourly fee, or a flat annual fee.
The hourly and annual fee are self-explanatory. Those who charge by the hour will generally bill you in a similar fashion to your CPA or your attorney and the amount will completely depend on how much work they do for you in a given time period. The advisors that charge an annual fee will most-often keep that fee flat regardless of how often you call or need an appointment.
The asset-based compensation method - probably the most common you will find - is where an advisor will charge a percentage fee based on the amount of money you have invested with him or her. Most often, these fees range from .50% to 1.50%, and will be on a sliding scale to decrease as the amount of assets invested increases.
It is important that you understand how your advisor is compensated and I would recommend that you interview multiple professionals to ensure you are hiring the right person to fit your needs. With that said, finding the advisor with the lowest fees is not always the right solution, so be sure to understand their expenses, but then look beyond that and evaluate them on experience, scope of advice, philosophy, and integrity. I assure you that a good financial advisor is well worth the price you will pay.
If your retirement nest egg is currently split between traditional qualified 401(k) and Roth assets, you should consider converting portions of your 401(k) into the Roth between now and when you turn 70 1/2. While this strategy certainly does not work for everyone or in every situation like yours, it can be beneficial if you are in a low income tax bracket during your 60's. For instance, if you are not filing for Social Security and your income puts you in the 15% tax bracket, you would have the ability to convert a portion of your 401(k) assets into the Roth and only pay 15% taxes on that conversion (up to a certain income level). This will lower the amount you otherwise would have had to take for your Required Minimum Distribution and also provide you with a nice pool of tax-free assets in retirement.
As an additional side-note, delaying Social Security benefits can be an option for the strategy I outlined, but keep in mind that there is no benefit in delaying benefits past age 70. Make sure that you file for benefits no later than that. Additionally, if you are married and you have a spouse who has not earned 40 credits towards his/her Social Security, he or she will be unable to file for half of your benefit until you file at age 70.
Unfortunately, it sounds like the house you are looking at buying is a bit outside your range of affordability. While technically you could withdrawal money from your 401(k) or borrow against it, you should not in this scenario. I would recommend that you continue to keep your lifestyle at a modest level until you can afford a healthy down payment for your home, without sacrificing your emergency fund. Too many people enter a situation like yours because their emotional attachment to a home drives them to purchase too much house too quickly and it can put unneeded strains on them in the future, such as the need to replace a furnace, or some other large home expense. Save yourself the hassle and keep renting so you can pay down debt and establish an emergency fund with 6-12 months of expenses. I promise you will thank yourself in 10-15 years.
You should seek out a financial advisor who works for an hourly fee, you may even be able to find one who has a CFP or CPA designation which is a sure-sign that they have experience solving more-complex tax questions. Many people don't realize that you can interview financial planners rather than simply doing research online or taking a referral from a friend. Sit down and think through the most important qualities that you look for in an advisor, and then don't settle until you find someone who meets those qualifications. Hourly fees can fluctuate as well, so make sure that you understand what you will be paying in advance.
Finally, I would make sure that whoever you hire will collaborate with your other trusted professionals. When it comes to retirement, estate, and tax planning in later stages in life, you want to make sure that your hired professionals, despite being in their respective corners of expertise, are collaborating and coordinating advice for your ultimate benefit.
You can absolutely do this! As long as the value of the stock is lower than $14,000, there should be no problem in gifting it back to your friend. If the value is higher than that $14,000 limit, you will need to file a gift tax return. If this is the case, you may want to consider gifting it back to them in tranches, maybe $14,000 before the end of the year, and then then give the remainder to them after January 1, 2017.
All you need to do is call the institution that is holding the stock (known as the custodian) and ask them to put together the paperwork needed to retitle the shares to your friend. Keep in mind, if the stock has experienced growth since your friend gifted it to you in 2014, he or she will experience a capital gain when it is gifted back to them.