Jack Brkich III

CFP®
Retirement, Investing, Lifestage Based Planning
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“With over 20 years of experience in the investment world, Jack Brkich can put his experience and the experience of his network of support professionals to work for his clients and help them turn their hopes for the future into goals achieved.”
Firm:

JMB Financial Managers

Job Title:

President

Biography:

Jack Brkich III is the founder of JMB Financial Managers. Combining over twenty years of investment experience with his expertise in personal financial planning, Jack has established himself as a trusted advisor for individuals, couples, families and business owners. As a Certified Financial Planner, he implements advanced planning strategies by using a broad array of wealth creation and preservation techniques.

JMB Financial Managers, Inc. provides customized investment, tax and retirement planning solutions for independent contractors, family owned businesses and owners of small companies (25 employees or less) that do not have the time, skills or desire to handle the day-to-day details of their personal or business finances. As a result, clients are free to spend more time prospecting, networking, and building relationships, leading to higher incomes.

Securities and advisory services offered through Cetera Advisors LLC, member FINRA,SIPC. Cetera is under separate ownership from any other named entity.

Education:

MBA, Pepperdine University
BS, Civil Engineering, Santa Clara University

Assets Under Management:

$103 million

CRD Number:

2098874

Insurance License:

#6492146

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  • Jack Brkich III, CFP
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August 2017
    Debt, Financial Planning
March 2017
    Estate Planning, End of Life
May 2017
    Retirement Savings, Women & Money
February 2017
    Retirement Plans, Retirement Savings
May 2017
    Lifestage Based Planning, Retirement, Retirement Savings

All Answers
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    Retirement, Retirement Savings, 401(k), IRAs
What else can I do to save for retirement without a 401(k)?
100% of people found this answer helpful

As a self-employed individual, you may not think of yourself as a business owner per se, but this exactly what you are – and as such, you have several options available to you beyond an IRA that will generate larger tax deductions and more retirement wealth accumulation.

The most simplistic of these options is the SIMPLE-IRA. You may contribute $12,500 as an “employee of your business” to a SIMPLE-IRA, plus you may match your contribution “from the business” on a dollar-for-dollar basis up to 3% of your compensation (or $8,250 whichever is less). At the maximum, that would provide you with a $20,500 tax deduction in 2018. On the downside, SIMPLE-IRA’s are accessible for withdrawals, but there is a higher-than-usual 25% penalty for early withdrawals within the first two years, over and above the income taxes due on the withdrawals.

Another option is the SEP-IRA. You may contribute 25% of your gross profit (20% of your net profit) “from the business” up to a maximum of $55,000 in 2018. (Gross Profit being revenues less all expenses before SEP-IRA contribution; Net Profit being revenues less all expenses including SEP-IRA contribution.) On the downside, SEP-IRA’s are accessible for withdrawals, but there is a 10% penalty for early withdrawals over and above the income taxes due on the withdrawal.

Another option is the 401k + Profit Sharing Plan. You may contribute $18,500 as an “employee of your business” to a 401k + Profit Sharing Plan, plus may contribute 25% of your gross profit (20% of your net profit) “from the business” up to a maximum of $36,500 in 2018, for a total tax deduction of $55,000. (Gross Profit being revenues less all expenses before SEP-IRA contribution; Net Profit being revenues less all expenses including SEP-IRA contribution.) On the downside, only “hardship withdrawals” are allowed from 401k + Profit Sharing Plans, plus there is a 10% penalty for early withdrawals over and above the income taxes due on the withdrawal if permitted. On the other hand, a 401k + Profit Sharing Plan comes with a loan provision, which allows for loans up to $50,000 or 50% of the account balance, whichever is less.

The most advanced (and complicated) option is the Pension Plan. A pension plan is designed to pay you (the employee) a certain percentage of your salary, based upon the number of years you work for your business. First year tax deductions can range from $57,000 for a 30-year old to $255,000 for a 60-year old in 2018 based upon a $220,000 self-employment income. Pension plan contributions are not eligible for withdrawal. However, a pension plan may be terminated and rolled over to an IRA.

The 401k + Profit Sharing Plan may be combined with the Pension Plan if you have the need and wherewithal for large tax deductions and wealth accumulation.

Each of these three options are available to you as a self-employed individual, and each provides you with varying opportunities for tax deductions, wealth accumulation, asset protection and liquidity (access to the funds prior to age 59.5). Each has some inherent limitations as well, so please discuss with a retirement plan specialist before making any decisions.

 

Best of luck!

Jack Brkich III, CFP

Securities and advisory services offered through Cetera Advisors LLC, member FINRA, SIPC.

3 weeks ago
    Pensions, 401(k)
What's the difference between a 401(k) and a pension plan?
74% of people found this answer helpful
April 2017
    IRAs
What is the "stretch IRA" concept?
55% of people found this answer helpful
January 2017
    Financial Planning, 401(k)
Can both a husband and wife contribute to a Safe Harbor 401(k) with a match?
13% of people found this answer helpful
August 2017
    Pensions, Peri-Retirement
Which pension option is the smarter choice?
13% of people found this answer helpful
June 2017