Orlando 401k Specialists
President / Financial Adviser
Michael J. Marini is President of Orlando 401k Specialists and author of two books; 401 CONFIDENTIAL: How 401(k) companies get FAT on your money...while you slave at your cubicle and FINISH STRONG: 21 Life and Money Lessons For Professional Athletes. www.401confidential.com
Orlando 401k Specialists is a leader in providing low-cost 401(k) plans, Solo 401(k) plans, SIMPLE IRAs, SEP IRAs, 457(b) plans, 403(b) plans and defined benefit plans to companies and municipalities across the U.S.. Whether you are starting a new plan or going through vendor selection to replace your existing plan, we greatly appreciate the opportunity to meet you and show you the difference we can deliver.
Who We Serve…
We serve individual clients, small businesses, large corporations and local and state governments with retirement plans, investments, life insurance, disability insurance and ACA & ERISA compliance services.
Michael J. Marini is a 1989 graduate of the University of Central Florida and has been a practicing financial adviser since 1997. He hold Series 6, 26, 63, 65, Life & Health Insurance & Annuity licenses. He resides in Altamonte Springs, FL with his wife Donna.
BA, Advertising & Public Relations, University Of Central Florida
Assets Under Management:
Michael J. Marini is registered with and securities are offered through Kovack Securities, Inc. Member FINRA/SIPC. 6451 North Federal Highway, Suite 1201, Ft. Lauderdale, FL 33308. (954) 782-4771. Advisory Services offered through Kovack Advisors, Inc. Orlando 401k Specialists is not affiliated with Kovack Securities Inc. / Kovack Advisors Inc.
Michael J. Marini is registered in CO, FL, GA, IL, MD, MO, NJ, NV, OH RI, SC, TX, VA.
The best way to answer this is to compare the monthly P & I payment to the monthly income you could generate with the $95,000. If you keep the $95,000 in your investment portfolio, you could generate approximately $4,750 per year in income and maintain ownership of the $95k. This translates to about $395 of monthly income. I'm basing this on having the $95k in a moderate allocation investment portfolio and taking a 5% annual withdrawal, received in monthly installments.
So, ask yourself this. Is it worth it to you to give away $95,000 and $395 of monthly income throughout your retirement in exchange for no longer having the monthly P & I payment. Without knowing what the P & I payment is, I can't give you an opinion. But I feel you have enough information now to answer the question yourself.
Technically speaking, your answer is yes. It is advantageous given that you pay taxes on the converted amount, period. If the value drops, then you have less money to convert and less taxes to pay. I would look at the matter a little differently. I would look at preserving and protecting your portfolio from market downturns through proper asset allocation and diversification. You certainly can't diversify away all risk. But I would place my emphasis on being a smart investor first. I would address the conversion issue second by converting only the amount you would be comfortable paying taxes on. You can convert all or a portion of the IRA. You don't have to convert the whole account all in the same year. Convert what you can afford and leave the rest to be converted in later years. It's never wise to let taxes take precedence over being a smart, successful investor. If you follow my advice, you'll end up with the most money for retirement when you get there.
The benefits are mostly intangible, and somewhat financial. The main benefit is the employee benefit. The employer offers a matching contribution to try to boost morale and increase the chances of attracting great employees. It is hard for someone who's never owned a business to understand, but finding talented, loyal, honest and hardworking employees is the single biggest challenge for any business. There's a reason that businesses have entire departments that exist just to manage the employee workforce. The matching contribution is used as a way to get a talented person to choose that employer's job offer over another's. Another benefit is that the business owner can get more money into their own retirement account, as well as those of the employees. Lastly, it helps that the matching contributions are tax-deductible to the business.
Your question is completely open-ended and doesn't speak to any goal you are trying to acheive. I feel like you need a goal. Your goal should be something along the lines of "I want to be financiall independent by age ??" Financially independent would mean that you could work if you wanted to, but wouldn't need to. You could draw enough monthly income from your investments, and perhaps social security, to meet your expenses and give you adequate disposable income. So the first thing to do is determine what that monthly income would need to be and by what age. Is it $4,000? $5,000? Only then can you answer the questions of whether you should keep saving and where you should put the money. You do need to keep saving. You do need investment advice. You do need investment products, besides that money market account, if you're going to meet the goal.
There are several options of retirement plans for self-employed people. You could establish a Solo 401k, SIMPLE IRA or SEP IRA and any of them would all you to contribute as much as you wanted, practically speaking, since you make $40K per year. They all do the same thing. Research them on IRS.gov to see the differences and which one looks best to you. We can work with you to establish one if you'd like. We can provide any of these plans without the setup or administration fees typically associated with workplace retirement plans.