Babylon Wealth Management
Stoyan is the founder and CEO of Babylon Wealth Management, a fee-only investment management and financial planning firm, based in Walnut Creek, California. He found his firm after spending eleven years on Wall Street and a total of thirteen years in New York City.
Stoyan is a native to Bulgaria and grew up in a small town community with strong family values. At the age of 23, he moved to the United States to pursue a graduate degree in Finance at Pace University Lubin School of Business in New York City.
In 2004, Stoyan completed his MBA degree at the top of his class. Two years later, he earned the CFA designation. During his time on Wall Street, Stoyan learned the ropes of the financial industry and investing. He worked his way up through three major investment banks on Wall Street – Credit Suisse, Wells Fargo, and Deutsche Bank. He gained extensive experience in risk management, equity, and fixed income markets.
In 2012, he met his wife, Serena. They got married in 2015 and moved to California a few months later. In the Bay Area, Stoyan decided to start a new venture and establish his wealth management company.
Stoyan's primary objective to become a financial advisor and wealth manager was to help his future clients make better financial decisions and empower their finances to achieve their personal goals.
People often delay important financial decisions until it is too late. Being a wealth advisor, Stoyan helps families and individuals develop robust and personalized long-term financial plan. He builds and manages customized investment portfolios that meet clients’ needs and risk tolerance.
In his practice, Stoyan thrives on helping hard workers like himself manage their finances efficiently. He also runs a financial blog with the goal to educate his followers about planning for the future.
MBA, Finance, Pace University
Assets Under Management:
Babylon Wealth Management is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Babylon Wealth Management and its representatives are properly licensed or exempt from licensure. The content on Investopedia is solely for informational purposes. Informational materials, brochures, and commentary produced by Babylon Wealth Management and its representatives are strictly informational and should be used for research use only. No informational materials, brochures, or commentary should be construed as advertising material. Any opinions expressed are relevant as of the posting date and are not intended to provide investing or other advice or guidance. All relevant facts, including individual circumstances, need to be considered by a reader to arrive at personal investment conclusions. Past performance is not indicative of future results. Investing involves risks, as the value of your investment will fluctuate over time and you may gain or lose money. Investment risks are born solely by the investor and not by Babylon Wealth Management.
The pension plans are typically financed by the employers and guarantee an individual pension when the employee retires. The guaranteed pension will depend on the years of service, seniority, and earned income among other factors. Employees may or may not be required to contribute to the pension plan. The crucial element here is the guaranteed amount. The employers bear the risk of meeting their future obligations. As we have seen many times already, many employers have a shortfall in their pension plans and have to take money out of their operation to pay off pensions to their former workers.
The 401k and 403b are defined contributions plans, where both the employee and the employer make contributions. These contributions are tax deferred. They reduce taxes in the year they are made. Taxes are due upon withdrawal of funds. The main burden in these plans falls onto the worker. They are responsible for making contributions to their retirement plans. The employees are also responsible for making investment choices and choosing the asset allocation for the account. The employers do no guarantee a fixed pension. The retirement distributions are solely dependent on the contribution amounts and the performance of the funds chosen in the plan.
You can borrow against the cash value of your whole life insurance. Often times the interest on the loan will be lower than comparable personal loans. You should verify your cash value and loan options with your insurance agent. If you do not pay back the loan, the unpaid amount plus interest will be deducted from your death benefit.
Yes, you can. However, you have two options. Option 1 is to withdraw money from your 401k plan, pay taxes and use it for a downpayment. Option 2. take a loan against your 401k. Most 401k providers will allow you to borrow up to 50% of the 401k balance. You must pay off the loan within five years to avoid penalties. You are essentially lending yourself money and paying it back.
Option 2 is my preferred choice of the two. However, since 401k is your retirement money, I would recommend that you use it as your absolute last resort and try to find alternatives ways to save for the downpayment.
It's hard to answer this question without knowing the underlying strategy of each of your CEFs. Some assets do well in rising interest environment, others do poorly. Also, it depends if your CEFs are using short-term or long-term leverage financing. In any case, you can expect some increase in borrowing costs.
This is an excellent question, which we as investment professionals face every day. And of course, the answer is not always very simple. A Roth IRA is a tax-exempt account. You will not pay taxes on any gains and dividends if you keep your account intact until the age of 59 1/2. On the other hand, you will owe taxes on your distributions from the Traditional IRA account.
As someone at your age, I expect that your risk tolerance is high. Most risk assessment tests will assign you to an allocation of 80% equities, if not higher. Therefore, you will end up stocks in both Roth and Traditional IRA.
That said, I suggest that you keep your fastest growing investments like large-cap growth, small-cap, mid-cap, and emerging markets in your Roth IRA. The Traditional IRA should be designated for slower growth and high-dividend yield investments such as dividend stocks, REITs, and bonds. The goal of such allocation is to achieve the highest possible after-tax return.