True Contrarian Investments LLC
Steven Jon Kaplan began TrueContrarian.com in August 1996 as a weekly blog and later expanded this to a daily newsletter with intraday updates in February 2006. He has been trading his own account, and those of family and close friends, since 1981, and handles separately managed accounts for qualified clients. As a registered investment advisor, Steve charges a 20 % performance fee on net profits and no management fees. He has been quoted in Barron's, Market Watch, Dow Jones Newswires, Seeking Alpha, Kitco, and elsewhere and has appeared on Market Watch cable TV with Stacey Delo.
Steven's goal is to identify those assets which are farthest away from the best estimates of their realistic fair-value levels. This is done through designing algorithms which examine the most reliable signals in the financial markets. These include insider buying relative to selling; investor inflows and outflows; media and advisors' sentiment; and intraday behavior especially near multi-decade tops and bottoms. He studies historical interrelationships to mathematically identify which divergences from typical behavior are pointing the way toward essential trend changes.
Steve enjoys running with the New York Road Runners Club, composing and performing on piano and voice, writing stories, and traveling to unique places. He enjoys hearing from anyone about a wide range of topics, so please let him know what you think about the web site or whatever is on your mind. You can find his music on ReverbNation.
BES, Electrical Engineering and Computer Science, The Johns Hopkins University
Assets Under Management:
20% of net profits; zero management fees.
True Contrarian Investments LLC
Steven Jon Kaplan explains why investors repeatedly fool themselves.
Steven Jon Kaplan: April 2010 conference
Whether stocks pay dividends or not is irrelevant; the RMD is calculated as of the closing price the previous December 31.
The way to minimize RMDs is to start converting your non-Roth retirement accounts into Roth accounts. I began at age 40 and I usually make one or more conversions each month, so that when I reach 70-1/2 my non-Roth accounts will be relatively small compared with my Roth accounts. I recommend this for nearly all of my clients. I have even told teenagers with Roth accounts to begin the practice of converting them to Roth accounts. The way to do this is to convert whatever is most undervalued and oversold, so that you pay tax at the lowest rate and so that all future gains are tax-free.
If you convert anything which ends up dropping further in value, you can unconvert or recharacterize those conversions back into a non-Roth IRA by October 15 of the following year, and then convert them a second time at a lower price. You can repeat this process as often as you like as long as you follow the rules.
It takes work to discover truly independent financial advisors. They will usually be listed on finra.org which is the official federal registry of registered financial advisors; you can check those in your area and see which ones have the best long-term records with the fewest complaints by their clients. Many large institutions will tend to recommend nearly identical asset allocations for their clients to minimize lawsuits and to guarantee steady compensation for their employees rather than to maximize your long-term after-tax returns which should be your advisor's goal.
Legally you can do almost anything you want to do. I will rephrase your question to ask whether it is prudent, rather than whether it is legal. It is not prudent to liquidate a Roth IRA, which takes a lifetime to build and only a few seconds to destroy. You are permitted once a year to take money out of a Roth (or any retirement account) and then to replace it within 60 days, but you should save that situation for a true emergency such as your dying on the emergency-room table rather than a college tuition bill which you have known about in advance for about 18 years. Those who don't plan end up with the false crises that they deserve.
If you don't replace your Roth funds within 60 days then you will face a 10% penalty for early withdrawal since you are not yet 59-1/2. You can apply for a waiver from the IRS since you are using it for tuition for your daughter and they may approve it. However, in that case you won't be able to replace your Roth funds except to the extent of your usual annual maximum of 6500 apiece for yourself and your spouse--which probably you aren't doing anyhow.
Whether you have a Roth with one institution or another is irrelevant. The rules are the same either way.
If you are fortunate (or unfortunate) enough to be reincarnated, I would suggest starting to plan ahead for your children's college tuition around the time of their birth, rather than on the day before the tution is due.
Your question shows that you are confused about your federal income taxes. If you claim the standard deduction then you can't deduct mortgage interest or property taxes which are itemized deductions. You can only have one or the other, not both--either your standard deduction or the combined total of your itemized deductions. I would recommend checking your 2016 tax return to see which applied in your case, as that will likely also apply in 2017. My guess is that you aren't actually deducting your mortgage interest or property taxes even though you think you are, because your combined itemized deductions as a disabled person are very unlikely to exceed your standard deduction unless you are making incredibly large charitable contributions--which seems very unlikely also.
If you withdraw money from a non-Roth retirement account then it is taxable, period, regardless of what deductions you claim. You didn't say if you were married or not so it is unclear what your tax bracket is, but it is probably around 15%. Therefore, if you withdraw 4500 from any non-Roth retirement account, you will pay 675 in federal taxes and some other percentage in state taxes depending upon your state of residence. You may also end up paying taxes on your social security disability because your total income will be increased, plus you will get fewer tax credits. So the total tax bill altogether is probably close to one thousand dollars. This is assuming that you can get a waiver of the 10% penalty for early withdrawal due to your disability, since you aren't yet 59-1/2. The IRS usually grants such waivers but not always.
Forget about the will and concentrate on naming legal beneficiaries for all your retirement accounts and transfer-on-death (TOD) statements for non-retirement accounts. Those supersede a will and are very difficult to contest. With a house, transfer-on-death is usually not allowed in many states, but if you put your house into a trust then the will can state that the trust goes to one person whom you can name as the trustee and recipient.
If you want to be on the safe side, a better method for a house is to add that person's name to the deed. The person may have to pay capital gains taxes eventually on the price appreciation but that is better than risking a court challenge. It is very difficult to contest a legal deed which has already been registered.