Bloom Asset Management, Inc.
Jack K. Riashi, Jr., CFP® has been with Bloom Asset Management since 2002 and has been an active member of the firm’s Investment Committee since inception, which is responsible for setting investment strategies and selecting approved securities for client portfolios. He provides a wide range of financial expertise including personalized investment management, asset allocation, and comprehensive retirement planning. Jack has been featured as a financial expert for the Detroit News' Money Makeover series and has been a frequent guest on WXYZ-TV Channel 7 Action News providing financial advice and market observations. He has also contributed numerous articles for the firm’s website, MoneyTalk and MoneyWatch newsletters. Jack has also been selected as an HOUR Detroit Five Star Wealth Manager each year since 2011, an honor he works hard to achieve.
Jack has been serving clients in the financial service industry since 1987, holds the designation of Certified Financial Planner (CFP®) and is an active member of the Financial Planning Association. He is a graduate of Wayne State University with a bachelor's degree in finance and has been a featured speaker at many Bloom Asset Management seminars.
As a CERTIFIED FINANCIAL PLANNER™ practitioner, Jack has met rigorous education and ethical requirements and has gained extensive knowledge in the areas of financial planning, risk management, investments, income tax planning, and retirement and estate planning.
In his free time, he enjoys spending time with friends and family and is an avid golfer and cyclist. Jack is also very actively involved in his Church and has contributed his expertise in financial planning and goal setting to the Church’s Finance Committee over the years.
BS, Finance, Wayne State University
Assets Under Management:
This is one of these life events that call for a detailed overview of your situation. The successful sale of your company is a real achievement. It appears this sale put you in a strong financial situation and may afford you the chance to live very comfortably for the rest of your life and the life of your family if you plan appropriately. At this point, I would not worry so much about the stock market reaching all-time highs as I would establishing a game plan for the rest of your life. The game plan includes mapping out whether you plan to never work again, how much income you will need, and making sure you have retained the services of a competent CPA, financial advisor, and an attorney to name a few. This team of professionals will be helpful to you going forward.
Depending on your goals and objectives, and more specifically, your annual income needs, you may not have to have as much exposure to riskier assets like stocks than you think. There are a number of ways you can invest this money that will help sustain your standard of living for the rest of your life. You could establish a globally diversified investment portfolio that includes a number of asset classes like stocks, bonds, cash, or even annuities, which I do not particularly care for. In other words, you could take some of the money and generate a lifetime stream of income that will last the rest of your life using an immediate annuity so you are not entirely dependent on market returns. Again, I do not believe you need to take as much risk as you think necessary given the size of your assets, but this depends on your long-term income needs. You could live another 45 years plus so you want to be sure that any strategy considers a long-term life expectancy.
It may also make sense to interview at least three to five financial advisors before making a decision to hire one. You want a firm that will work with you and guide you prudently. You do not want to use a firm that wants to sell products as your solution(s). Be very careful and obtain referrals from other professionals. Please visit the CFP web site--CFP.net and try to find fee-only advisors.
Take your time and do not make any quick decisions. This is a time for personal reflection and goal setting.
I wish you the best of luck!
It appears your financial advisor did not ask the right questions and/or does not know much about your risk preferences based on your statement that you are willing to risk losing money to achieve more growth. At the same time, you did not specifically indicate the investment allocation your advisor recommended so it is difficult to know for sure. Some advisors' conservative growth allocations may have a sufficient percentage of growth already.
I would go one step farther and say you should take an inventory of your investment assets and figure out how this additional inflow of money will impact your investment plan. In other words, this current windfall could be very helpful to achieving your goals and should be included in your long-term investment strategy. If that is the case, then the inherited assets should be part of your overall investment plan. I would not view the inheritance as a "one-off" investment account separate from the rest of your assets. I would strongly suggest you consider incorporating your inheritance assets in your overall portfolio and allocate it appropriately.
Lastly, I recommend that you contact your advisor and discuss your concerns with him or her. I believe it is important for your advisor to understand your goals and objectives. Furthermore, it is important your advisor understand your investment profile.
Good luck to you!
You would have to file and receive benefits before your wife can apply for a spousal benefit. If you are 67 now, then you would receive your full Social Security benefit. Your wife can apply to receive half of that benefit, but again, only if you apply and begin receiving benefits. If you plan to apply at age 70, as you indicated, then your wife can apply for 50% of your benefit. The main point is, regardless of whether you are age 67 or 70, you would need to apply and begin receiving benefits in order for your wife to receive spousal benefits.
If you determined that you needed income for supplemental spending, then it may not make sense to wait until age 70. However, everyone's situation is different. I believe that delaying Social Security benefits can be advantageous but not for everyone. If you expect to live a long life, then you may want to consider delaying until your maximum benefit. If you have sufficient outside resources such as pensions and investment assets, then you may want to assess all of those factors before you make a decision.
Good luck to you!
It sounds like you have had a plan in place for some time, which is great! Being able to retire at age 55 is quite an amazing feat these days so congratulations. You certainly want to make sure you have sufficient resources to fund your retirement spending, which includes paying for health insurance/expenses. As you indicated, it will be ten years before you can enroll in Medicare and twelve years before applying for SS benefits. Therefore, you want to make sure your resources, including everything even future SS benefits, are enough to last throughout your lifetime.
With respect to your 401(k), I would certainly continue contributing up to the amount of your employer match since that is free money. If you have outside investment money (outside of your 401k), then you can use those monies to help fund your spending. Of course, if you retire at age 55, then you can legally withdraw from your 401(k) without penalty. This is important if you do not have taxable assets. If you do not have taxable assets, then you want to keep the 401(k) open and withdraw from that. Otherwise, you would have to pay an early withdrawal penalty if you withdraw from an IRA before age 59 1/2. I normally recommend that investors roll over their 401(k) into an IRA. The benefits of this are twofold--1) you can expand your investment choices at a firm like Schwab or Fidelity, and 2) you have expanded beneficiary options.
Congrats again on your retirement plans and best of luck to you as you move on the next phase of your life!
Having higher yielding bond funds as part of your fixed income allocation is not a bad idea. However, you have to remember that high yield bonds tend to act like equities at times, especially during stock market declines. This is why it makes sense to keep exposure to a minimum. The current market for high yield bonds is stable right now, though valuations are not that compelling. Also, there are a variety of bond funds that call themselves "investment grade" but then own some high yield bonds to juice up their yields. You have to look under the cover with bond funds because of this issue.
There is no magic allocation percentage at any age, but you have to understand the risks as well as the rewards. As I stated above, you have to understand that high yield corporate bonds are somewhat correlated to stocks so keep this in mind as you build your fixed income allocation.