Cesar de la Cerda is an investment professional in Houston, Texas with 17 years of financial services experience and founder of Envisionvest. Cesar has helped thousands of people achieve realistic financial goals and brought financial visions come to light. He served in the United States Navy as a corpsman and is a graduate of the University of Houston where he focused his studies on economics and finance. He has a passion for helping others and educating individuals, families and businesses for success!
Cesar works with individuals and business owners in the Texas area to identify risk and provide solutions to meet those specific needs. Individuals and businesses alike can be at different stages in their life phase and require different necessities at different times. He helps identify risk through a discovery process that helps prioritize essentials and helps to keep clients on track for financial independence. He hasn’t forgotten about lifestyle, after all that is why individuals and business owners do what they do.
Cesar believes the importance of financial independence provides us time to enjoy with our families, friends, community and business partners. His discovery process is designed with a goals based approach to help clients stay on track to maintain a balanced approach.
BS, Economics, University of Houston
BBA, Accounting and Finance, University of Houston-Downtown
Assets Under Management:
Tiered with no minimum
Envisionvest is a Fee-Based financial advisory firm, meaning that we offer both investment advisory services for a fee and offer limited insurance products that have commissions associated them.
Investments products and services available only to residents of: TX and in other jurisdictions where exempted.
Life and Health products and services available only to residents of: TX, AZ, FL, NM and NV
Borrowing money from a life insurance is relatively simple, so long as there is cash value to meet your loan requirements. Most insurance carriers have a department that can handle that request by simply calling them. The carrier will point out the interest to be charged and the way the loan can be repaid.
Depending on the insurance carrier and the type of life insurance product, there could be potential impacts that you should be aware of when taking a loan against the cash value. Some of these details may be listed on the terms of agreement, but others may not. You may want to consider reaching out with the agent that help you to review any potential concerns. For example, the death benefit would generally be reduced by the loan amount. Another concern would be if the cash value could continue to earn interest or dividends, or purchase additional paid up insurance with a loan in place.
The process would be generally simple, due to cash value being available and the motivation by carrier to earn some interest. You as the insured are simply paying yourself back.
This is a question that I have heard many times by pre-retirees. Sometimes questions like this invoke more questions, to better understand the impact of the options. Let me start by first discussing the 401(k) asset and whether you are still employed with the employer that the plan is with, or if you have separated? If you are still employed, generally, you would have to be 59.5 years of age or older to take an in-service distribution. With you being 57, it may not be allowed if you are still employed, as most retirement plans prohibit this. If you have separated for service, then taking a distribution could be done from the plan or assets could be rolled over into an IRA. The main concern with this could be in the form of a tax penalty for early withdrawal, for being under 59.5 years of age. There are other methods to take withdrawals depending on your circumstances that could provide an exception to the penalty for early withdrawal.
You mentioned two other pieces of information that are pretty important considerations as well, the pension and working again. First, the pension option brings more questions to mind. Such as, what type of pension is it, what type of income options are available and will any dependents depend on it, like a spouse? Depending on the type of pension, generally most are structured very similarly, in that once a payment is elected, it will be fixed and reliable. Also, some pensions may allow for a partial or total withdrawal, with each option having equal benefits depending on the strategy and goal that the retiree is hoping to accomplish.
The likeliness of taking a job is an equally important consideration in terms of how soon and/or how much income will you earn when considering taking withdrawals from a retirement account. Your main consideration should be the amount of withdrawal not being in excess of what you need to avoid over paying taxes in income you may not need.
I hope this addresses your question. First, you can only take a distribution if you are separated from service, due to in service distribution rules. Take a look at some of the questions I posed by looking into the options prior to making a decision. Wish you all the best and success in your transition.
Thank you for your question regarding life insurance for a dependent from another marriage. The answer isn’t so simple, but the solution could be easier and more efficient if addressed early.
First, there are some complicated concerns which pertain into legal aspects of divorce decree and the expectations. You should involve an attorney in your state of Colorado that understands the proper structure. An attorney can help with estate planning documents that give specific instructions as to how assets are to be handled. Not having a plan defaults to the state and its specific laws. Generally, life insurance proceeds are paid directly to the beneficiaries and can avoid probate. However, some state laws could limit this like in the case of a community state, which Colorado isn’t. So my first question would be if the child is in Colorado or in another state, specifically a community state.
The ex-wife could have a claim, but if the new policy isn’t structured properly due to state laws, benefits could default to the child and if a minor, proceeds could be held until the minor turns 18. My first suggestion would be to call the insurance carrier claims and legal department. This would cost you $0.00 to find out how the claim would be processed. My second suggestion would be to have an attorney draw up estate documents outlining how assets are to be handled. This is particularly important if you have children together and if you brought children from another marriage to the party.
I hope this helps and if you have additional questions please repost.
Estate Planning can be one of the most important considerations for a family to plan for, particularly when it can synchronize assets with intended legal requests. The simple answer is that the Trust and a Will have different functions and are recognized differently. Case in point, a Trust has a trustor and a trustee versus a Will has a testor and executor. Additionally, there can be supporting documents that can make an Estate Plan more cohesive, such as Powers of Attorney and Living Directives. In my experience, a Last Will and Testament would have the Trust as the beneficiary; the Will gives everything to the Trust, for the purpose of not having to probate. In this case, how is this Will created by the husband in sync with the Trust originally created? These documents should be evaluated by an attorney that specializes in these matters and is up to date with any changes a state may have made.
I advise my clients to review assets and update changes with an attorney at least every 2 years. When dealing with a community state, an attorney that specializes should be consulted. Where this area affects assets, is where a Financial Advisor or financial institution can assist to ensure proper registration and administration. Registration and administration can affect real estate, business holdings, investment accounts, retirement accounts, and bank accounts to name a few. If the husband made changes that limits or removes powers, this could affect how assets are controlled or who is beneficiary. This should be reviewed by an attorney so there are no surprises and result in additional costs to address later.
It is great that you are giving retirement savings some thought. For the first part of your question, time and consistency are the most important. You will need time on your side to maximize accumulation. If you are in you early years (20’s to early 30’s), saving a small amount can go a long way versus being middle aged (40’s+) and not have saved consistently. For the second part of your question, in terms of magical or dependable, it depends on several considerations. One of those considerations, for example, is what you have access to such as an employer sponsored plan that has matching contributions. This can be magical, hypothetically speaking, due to more money working for you. For the dependable part, that has all to do with you. Maybe you don’t have access to an employer sponsored plan, but you could make contributions to an IRA or Roth IRA. Also, if you have a spouse who doesn’t have access to a retirement plan, then you could set up contributions for a spousal IRA.
In terms of investment in properties, all investments involve risk. The first risks that come to mind with properties is liquidity and costs to maintain. However, it could make up a portion of your portfolio.
Lastly, the best way to maximize and protect your retirement is to diversify. Work with an advisor that can help you construct your retirement plan that fits your goals and objects for both the short-term and long-term.