Millennial Wealth Management, LLC
Grayson Hofferber is the President of Millennial Wealth Management, LLC, a different kind of financial advisory firm dedicated to serving the needs of Millennials. Grayson and his team's comprehensive financial planning service is unique in the investment industry, as it is a true partnership between the firm and their clients. No two client relationships look the same when working with them, because let's face it, nobody is in the same financial position with the same goals and life circumstances. Grayson and his team promise to their client is to always put their interests first, which they committed to when they took the fiduciary oath.
Millennial Wealth Management, LLC was created from many years of personal experience as a financial advisor, and understanding that the vast majority of financial firms were really only looking out for one person... themselves. Think about it, should you trust the financial firms that nearly brought down the global economy a few years ago (the largest crash since the great depression) with your hard earned money? No?! Me neither!
Financial representatives make a sizable commission when they sell you a product, sometimes as high as 8%... Can they really put your best interests first? I don't think so, either. With that being said, Grayson created a firm designed to eliminate any and all conflicts of interest with the sole focus on helping his clients achieve financial success through prudent financial planning and low-cost, tax-efficient investment options. Grayson and his team are proud to hold themselves to a higher standard at MWM.
The information on this site is provided “AS IS” and without warranties of any kind either express or implied. To the fullest extent permissible pursuant to applicable laws, Millennial Wealth Management, LLC referred to as "MWM" disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement and suitability for a particular purpose. MWM does not warrant that the information will be free from error. None of the information provided on this website is intended as investment, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information is at your sole risk. Under no circumstances shall MWM be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the materials in this site, even if MWM or a MWM authorized representative has been advised of the possibility of such damages. In no event shall Millennial Wealth Management, LLC have any liability to you for damages, losses and causes of action for accessing this site. Information on this website should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized. COPYRIGHT MILLENNIAL WEALTH MANAGEMENT, LLC 2016. ALL RIGHTS RESERVED.
Grayson Hofferber - Millennial Wealth Management
Fantastic question and thank you for asking!
You may be strong candidates for consolidating, but there are a couple of considerations before doing so.
The fees that you have on the accounts seem reasonable, however, there may be some additional fees to consider. In addition to looking at the expense ratios of the mutual funds, there may also be administration fees and servicing fees attached to these 401(k) plans If, indeed, there are other fees on the retirement plans that you have not noticed or been aware of, your decision to consolidate may be more clear. Also, take note of any fees attached to any IRAs that you are considering, like any annual admin fees or fees for closing the account.
Of course, fees are not the only reason to consolidate. The investments themselves may need some attention. The biggest concern for your portfolio may be overlap and the concentration of your dollars to certain asset classes. You may be way overweight in US Large Cap stocks, which is a common issue for folks with multiple retirement plans and mutual funds. This over concentration could affect your returns as well as your risk profile.
Another big consideration is peace of mind. If having your money scattered all over the place causes undue stress or anxiety, then absolutely, you should consolidate. Many folks talk about the numbers and often overlook the mental health side. I am a firm believer that you can make better money decisions and take better action on your portfolio if you are in a place of peace, as opposed to anxiety.
Lastly, if you are self-managing your investments at this point and you are spending too much time or are starting to have more questions about what retirement is going to look like from a draw down perspective, it may be time to consider hiring an advisor to help get you to and through retirement. There are many advisors that are fiduciaries, that do not sell products, that can truly help you and may be able to reduce your fees even further. I hope this is of some help. If you still have questions, consult with a fee-only financial planner.
Good question! Any withdrawal from a Traditional IRA, or pre-tax IRA, whether it is an early or a regular withdrawal is taxed as earned income. Meaning, you can tack the amount of the withdrawal onto any other earned income from the year. The only difference between an early and a regular withdrawal is the penalty of 10% Hope this helps! If you still have questions, talk to a fee-only financial planner.
This is a great question. Retirement assets are split through a process called a Qualified Domestic Relations Order, or QDRO for short. This order will determine what assets should be delegated to the parties involved. However, it really comes down to your individual situation and what is set forth in the divorce decree. With that being said, you are typically entitled to half of the total balance, both pricipal and growth, that was accumulated during your marriage. Most states defer to a 50/50 split of assets between spouses during a divorce. Keep in mind any contributions and growth accumulated prior to marriage is left out of any of the calculations, unless otherwise determined by the decree. One of the unique traits to assets divided by QDRO is the accessibility without penalty. Typically, if you are not age 59 1/2 and take a withdrawal from a retirement account, you will be penalized 10% of your withdrawal. In the case of QDRO, the penalty is waived. A divorce attorney should be able to tell you the specifics of you situation and walk you through the state's requirements for assets in case of divorce. Hope this is of help! If you have any other financial questions, consult a fee-only financial planner.
Great job on getting your 401(k) contributions setup to get your full match! You are definitely on the right track! Dividends are really great, as they are an important part of compounding and may actually help reduce the risk in your portfolio. Most companies will have you auto-enrolled into your retirement plan with your contributions going into a target date fund that is based on your age and projected retirement date. A target date fund is typically a "fund of funds", meaning, the fund's portfolio is comprised of a handful of individual mutual funds or ETFs. The average target date fund is 50+% more expensive than an average ETF due to active management. If you want to manage your own plan using ETFs, you can do well with the tools available in your plan. Having a diversified portfolio is very important to your long term success. With that in mind, one of the best retirement hacks is to look at what investments are held within the target date fund's portfolio and replicate the mix as best as possible with your available investment options. Pay attention to the asset categories like: large cap stocks, short term bonds, emerging markets, and so on. Be sure to setup an automatic rebalancing option to maintain your initial investment mix. Follow these steps and you can have a well diversified retirement account that will keep your investment mix in balance, and will keep more of your hard earned money working for you rather than paying for active management. I hope this helps! If you still have questions, consult a fee-only financial planner.
Great question! You definitely have the right mindset! I will do my best to help, knowing that I only see a very small piece of your overall financial picture.
Debt is one of the biggest risks to building wealth and getting it paid off should be a priority. I generally recommend categorizing your debts from highest interest to smallest to determine what debt payments to prioritize. If the $50,000 balance in your checking account is in addition to an emergency savings account with enough cash to cover 3 - 6 months of expenses, then, absolutely you should be putting that money to work. If the balance in checking is the entirety of your liquid savings, then I recommend moving enough to a dedicated savings account for emergencies to cover the 3 - 6 months of expenses. You can then take the difference and either pay down your debt or potentially invest it. To determine the best course of action, look at your interest rates on your debt. Keep in mind, paying off debt is one of the only guaranteed returns. Interest not paid is essentially interest earned. If your interest rates are higher than 5%, then I would say paying off the debt would be a good return in any market. If they are low to zero, then it may make sense to look at investing some cash.
Keep up the good work! I hope this was of some help. If you have other questions, consult with a fee-only financial planner.