Wealth of Confidence, LLC
Owner, Financial Planner
Breanna Reish, CFP® graduated with a Bachelor of Science in business administration with a concentration in Financial Planning from California State University, San Bernardino. While in school Breanna interned with a local independent planning firm in order to gain experience working with local families. After her internship, Breanna went on to work with a planning and tax preparation firm. There she gained a lot of tax knowledge that has, in turn, helped her clients with tax planning. Breanna sat for and passed the CFP® exam in 2015. She decided to gain more experience working locally where she could focus solely on perfecting her planning experience for clients. In 2017 Breanna decided it was time to pursue her dream of creating a comforting experience for women and planning for those that really want a great comprehensive experience.
Breanna was born and raised in sunny southern California. She is married to Zac, a landscape contractor, and has two crazy kids named Journey and Dayton. When Breanna is not working with clients she is driving her children to tennis, swim lessons, leading her daughter’s girl scout troop, or helping with her husband’s off-road races. As a family they love to camp, take weekend trips to Mexico and consume as many street tacos as humanly possible.
Breanna believes in and tries to help others live the best life possible. This means finding balance, letting go of what can not be changed, believing in oneself, having a positive attitude and spending time with and on the things that truly matter.
BS, Business Administration, Financial Planning Concentratio, California State University San Bernardino
Wealth of Confidence, LLC is a Registered Investment Advisor in the state of California
The quick answer is No BUT because there’s always a but...
Keep in mind that if you leave the company or if you are let go then you will need to repay the loan or it will count as a distribution. If this happens you will need to square this away on your taxes.
Best wishes to you on your financial journey.
There are a few things to consider... say you turn 70.5 in 2018 and you are still working and have significant income, but you retire and have significantly less income in 2019. It may make sense to push the first distribution to 2019 BUT you will need to take BOTH the 2018 distribution and the 2019 distribution in 2019. So two distributions instead of one.
Other tidbits to consider:
1) Will you still itemize under the new tax reform changes?
2) Are you charitable?
If 1 is a no and 2 is a yes then you have other planning opportunities available to you that have the potential to save you decent money.
I would advise to invest in a planner to go through these scenarios for you. I don’t always recommend this I would say the value potential greater in your case than others.
There are fee-only planners that have processes to help people through these scenarios without requiring asset management or product purchase.
I’m not saying it needs to be me but I’m always happy to help point people in the right direction.
Best wishes to you on your financial journey!
I have not had a chance to read all of the comments but have you considered donating some of the stock? If you already donate money to charities you may want to donate appreciated shares of the stock instead.
As always it is recommended that you talk to a trusted tax professional before doing so and have someone guide you through the entire process.
Best of luck to you on your financial journey!
Without knowing more I like your term and save the difference idea. That way you have some insurance to cover the mortgage need but your control the accumulation aspect. $1 million seems overkill if the sole purpose is to cover the mortgage. $500,000 is more like it.
In regards to where you save it, that is all dependent on what else you have going on. If you do not have an emergency fund, you will need to start there. If you have any other debt then you should pay that off. Cash flow and 529 are not on the table. If you are not hitting your long time savings goal then you do not want to spend it. Since you have no children a 529 does not make sense at all.
Congratulations on your home purchase.
I know you came here with tax reduction as your first question. My question is what kind of repayment plan are you using for your student loans? Does Public Service Loan Forgiveness play into your financial strategy at this time?
I really don’t love giving tax advice online without seeing the entire picture. I personally look at all benefits employees are taking or not taking, along with taxes, and other goals.
Do you have plans to buy or rent, etc?
When student loans are part of the equation I highly recommend speaking to a professional that does this day in and day out. Seek out a fee-only planner for this case. I’m part of a network called XY Planning and this is the type of case that we work with on a regular basis. Some of us have starter plans to help you get your foot in the door without minimum investment requirements that other firms might charge.
I know this comes off as a biased answer but it I highly recommend it. The money paid now can save you a lot in the long run.