EverGuide Financial Group, LLC
Mark R. Painter, CFA is the Founder and President of EverGuide Financial group. He has been an investment manager for over 12 years at both the institutional and retail level having managed public mutual funds and individual client accounts. Additionally he has written for Seeking Alpha and been a speaker on various panels and industry conferences. Mark and his team's mission at EverGuide Financial Group is to help their clients navigate their financial course through cost effective wealth management and Everlasting education.
A graduate of Carnegie Mellon University Tepper School of Business, Mark went on to attain his CFA charter in 2009. Mark worked for Stanley Laman Group, Ltd from 2004 2016.
At Stanley Laman Group, Mark quickly went from analyst to portfolio manager in 2005 and helped create their portfolio management business. Not only was Mark responsible for portfolio management but also had large responsibilities in working with clients to understand their needs and financial goals. In 2014 Mark became the lead portfolio manager of a publicly listed mutual fund (American Real Estate Income Fund).
BS, Business Administration, Carnegie Mellon University
Assets Under Management:
Any distributions from an IRA count towards your RMD and are also taxed at your income rate regardless of how the interest or dividends are earned.
Tax free bonds usually carry lower interest rates than taxable bonds because of the tax free feature. Given that income inside of an IRA is not taxed it does not make sense to hold tax free bonds in this account.
Since you are concerned with meeting an RMD I am going to assume that you have additional assets outside of your IRA and this would be a better place for a tax free bond fund. By putting your more taxable investments inside the IRA and keeping more tax efficient investments in a taxable account you can maintain the same allocation while having a more efficient tax treatment.
Good for you on thinking towards the future. It is never too early to start investing. In fact, the early you start the longer your money has to compound and earn more money.
Since a 1 year old is not going to need income for a long time, your best bet is to use stocks.
The only other thing you should consider is what the money will be used for. Thinking ahead to college you may want to consider a tax advantaged account such as a 529 plan.
Congratulations on the sale of your condo. Paying off student loans is a big milestone and would recommend using some of the money to pay this down. Additionally you may want to look at taking a portion of the money and contributing to an IRA or Roth IRA. The combination of paying down debt and saving for retirement in a tax sheltered way will be a big benefit for you down the road.
Congratulations on saving for retirement. The best way to save for retirement is to keep more of what you make. This is done by reducing your current taxes and allowing your money to grow tax deferred.
In general a Solo 401 (k) plan can provide better tax savings because you can contribute both as an employee and an employer which allows you to contribute more money to the plan. Additionally, if you are over the age of 50 there are catch up provisions that can allow you to contribute even more.
The SEP- IRA is a little easier to administer and at $145,000 since you can not contribute more than 25% of your income, you will fall under the maximum $55,000 limit for a SEP-IRA.
Basically either option would work for you at this income level. The important things to consider would be the ability to earn significantly more so that a solo 401k makes more sense and if not than how whether the slightly easier administration on the SEP-IRA makes sense.
Options are liquid investments just like a stock so you can sell it at any point in time. Commissions on options trades can be fairly high so this should always be factored into your decisions. Additionally, if you bought the option to hold the stock for the long term, then excercing at expiration will be your best bet. If you are simply trading options and do not plan on holding the stock, it is never a bad idea to take a profit.
One more piece of advice is that options prices can move rather dramatically so make sure you are careful and pay attention.