Cesar de la Cerda is an investment professional in Houston, Texas with 18 years of financial services experience and founder of Envisionvest. He has helped thousands of people across the United States get inspired to set realistic financial goals and help their vision come to light.
Street Cred -
Loves competition-Placed top 5 in CME trading competition & Top 10 in M&A analysis Texas region (2013).
Sales executive production level, when employed for various fortune 100 companies.
Has failed at certain goals, which have humbled him.
100 plus hours volunteer with MD Anderson, & Junior Achievment
Economist at heart
Cesar believes financial independence provides us the ability to spend quality time with our families, friends, community and business partners.
BS, Economics, University of Houston
BBA, Accounting and Finance, University of Houston-Downtown
Assets Under Management:
Fee Only advisory services online or in person
Envisionvest is a Fee-Only practice.
Investments products and services available only to residents of: TX and in other jurisdictions where exempted.
Congratulations on helping your son through college! Now as “empty nester’s” the task of saving for retirement. Without knowing much about your situation, here is a simple 3 point guide to get you started.
1- Establish a goal of how much income you need to have in retirement. This could be established by a percentage of your current budget. This helps you determine four things, (1) how much you need to accumulate, (2) the withdraw rate, (3) when and for (4) how long it could last.
2- Have a good understanding of your budget and what other goals would come in to play. Your budget would help maintain your lifestyle and also protect you if an unexpected event occurred. Do you have adequate protection for premature death, disability, high medical expenses and an emergency fund. What other activities will require a consistent savings program, such as travel, or a big purchase/expense, i.e., travel, second home or your son’s wedding (haha).
3- Lastly, where to fund your retirement in the most effective manner. Do you have access to an employer plan and do they match a percentage. This is the fastest way to boost your retirement savings program. Next, consider the various individual retirement account options such as an IRA or ROTH IRA to name a few. This point ties back to your goal because you need a running start to fund as much as possible and need to consider the risk you are willing to take.
You should be careful in reviewing the options with your existing life insurance policies, in terms of how or what to do with them. Things to consider, when did you purchase your policies and has your health changed? The cost of that same policy might cost more now and are you still insurable? Is there enough cash value that the policy would sustain it self or for how long? What does the cost of life insurance premium schedule look like in the later years and will the funding keep pace to sustain it.
Consider working with a financial advisor that you feel comfortable either on an annual or on an ongoing basis to help you get organized.
You have a serious concern that could affect your retirement. Allow me to address each option and I hope it provides some insight.
1- Option to take the cash and run, but Uncle Sam will collect his tax and increase your taxable income. Not a good situation.
2 &3 - The RMD situation is the same while in the 457 and if you roll it over into an IRA.
Pro’s & Con’s.
If the money stays in the 457, what type of program is it in? Is it an annuity contract (TSA or Tax Sheltered Annuity) with a general account option (conservative interest bearing account) and sub accounts (mutual funds)? I ask this because 457’s generally are with non-profit or government type organizations. If so, you might have an interest rate in the general account that might have some guarantees and some mutual funds in the sub accounts. However, if the interest isn’t favorable, it could be impacted as interest rates rise. If the account is not in an annuity and has traditional mutual funds then my question is what is the quality and cost of investments available?
If you rollover the account into an IRA,then you could do a combination of things that addresses your concerns. Additionally, you would have greater control over the assets. Without knowing your goals it is hard to get specific and wouldn’t want to confuse you with jargon. I am a fee based advisor and offer a complimentary 30 minute goal planning session to help get an understanding of a person’s situation and concerns. I hope this helps you know what to look for and reach out directly if you have questions that are more specific.
IRA’s have different registration types and the SIMPLE IRA and the Traditional IRA are 2 of the many option types. While both are a qualified retirement account type, each has unique features. Let me explain the difference, in terms of set up, access contribution limits and benefits of each.
Most individuals have access to a Traditional IRA as this type of account can be set up very easily. This type of account can be opened and set up through a retail brokerage account directly through an investment company or broker-dealer or custodian. While many people think your local bank handles this type of account, it would only be able to use fixed assets types, such as certificates of deposit “CD’s”. The contributions can purchase mutual funds, stocks, exchange-traded funds and other investment options, which can be limited to a certain number of investment options available. The benefit of this account type gives you control of the choice of investment options and frequency that you contribute. The contributions could be tax deductible subject to the IRS contributions limits and requirements if allowable.
A SIMPLE IRA is an account registration type that must be formed by a business and it allows employees to participate in the program. This type of retirement account is a very cost-effective retirement plan versus a 401(k) for small businesses, i.e., businesses with 20 – 50 employees. Like the Traditional IRA, it can be set up through many providers and has similar availability of investment options. A business owner would have to contribute to the employees account subject to the IRS contributions limits and requirements. The benefit to this type of account is that the contribution limits are higher for those participating versus a Traditional IRA, which can help maximize achieving retirement readiness. Lastly, the main benefit would be access to contributions being pre-tax in the SIMPLE IRA.
There are other considerations in determining which could be the best fit and working with an adviser can help narrow down the options.
First, thank you for your service! The answer is yes, you can investment in real estate, but you need a plan. Investing in real estate can be very exciting, but it comes with a lot of risk. I have some ideas that could help you get organized and implement a strategy to help you with your goals. Let’s start off with understanding the type of real estate investor you would like to be. There are many different types and levels of real estate investors, so which one do you feel the most comfortable with. Find some books on different strategies to read while on deployment. Next, find real estate clubs wherever you are stationed or visiting. Many real estate clubs have clinics that will teach and help you along the way, these connections could prove to be important. This means partnering with people you can trust that could help you as you are learning.
Show me the money! Other important considerations. Buying real estate generally requires capital, how will you gain access to capital to secure a real estate deal? While on deployment, who will watch and care for the needs of the real estate property? Also, consider saving your money by having a personal savings account and a retirement account, with TSP. Lending institutions and investors partnering with you like to see liquid assets. These are a few small steps for you to consider and keep in mind to take your time, be prepared and execute once you’re ready.
Forex is an area that draws a lot of attention to new investors and is a skill that many big businesses utilize to leverage money across their day to day transactions.
It is great that you are studying and learning techniques that hopefully you can put to use. They say the best things in life are free, but profits isn’t one of them. In the world of investments it is hard to get free or even low cost support for many reasons. A suggestion would be to find an investment club where you might find someone that has the experience and time to collaborate with you. Wish you success.