Firm:
9M Investments, LLC
Job Title:
Managing Member
Biography:
Jacob Millican created 9M Investments after spending 15 years in the financial services industry in various roles focused on retirement. As a fee-only Registered Investment Adviser (RIA), 9M Investments is legally obligated to place its client's best interests before any other party when managing investments or providing advice.
Jacob has a clean regulatory record and no history of client complaints. He works with individual and business clients all over the United States and unlike many other advisors, he does not charge a fee for introductory client meetings. His fees are clearly stated here.
When he's not thinking about his clients, Jacob spends a lot of his time in health and fitness activities. He loves running and have participated in a multitude of races from 5K's to half-marathons. He enjoys gardening, but especially love cooking with fresh fruits and vegetables! He's also a voracious reader, this mainly tends to be economics and market related topics.
Jacob has been featured in Advisor Magazine
Education:
Texas Tech University
Assets Under Management:
$10 million
Fee Structure:
Fixed
CRD Number:
4607734
Disclaimer:
9M Investments, LLC is an Investment Adviser registered with the State of Texas. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions. Please contact us at 817-680-7942 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions. Additionally, we recommend you compare any account reports from 9M Investments with the account statements from your Custodian. Please notify us if you do not receive statements from your Custodian on at least a quarterly basis. Our current disclosure brochure, Form ADV Part 2, is available for your review upon request, and on our website, www.9minvestmentsllc.com. This disclosure brochure, or a summary of material changes made, is also provided to our clients on an annual basis.
Your concerns are valid. But a withdrawal strategy built around your needs can help alleviate your concerns in up and down markets. I like to use the 3 buckets strategy. You mentioned that you need $30K per year from your 401K. In bucket number 1 is the next 2 years of your needs. In your case that means $60K in cash or CD’s. Bucket 2 would be roughly 5 years of expenses. Again, in your case that means about $150K in a bond portfolio. It could be a mix of investments, but the goal is to slightly beat inflation. In bucket 3 is an investment strategy for the long term. An investment mix up to your risk tolerance, but a 60/40 mix or above in this bucket makes the most sense. Remember we have planned for 7 years of expenses. So we have time to make it up any downturns in the market.
This is the super simplified version. Managing RMD’s and cash flow needs throughout your retirement is just as hard building your nest egg. This strategy can be done in one account or separate accounts. But making sure we do it in the most tax efficient way is the key.
This sounds like the company is just doing away with whatever "fringe benefits" they were offering and just using the 401(a) as a way to offset any loss of benefits for their employees. Companies change policies on their benefits all the time. Unfortunately most times it's to the betterment of the company and not their employees. But I would need a lot more information than provided to give a better answer.
Based on the information given, I would say invest and continue to pay down your mortgage. But if your current age is closer to retirement, you may want to think about paying down or off your mortgage.
Currently you have an interest rate close to 30-year lows and you could possibly benefit on your taxes with the mortgage interest deduction. But that might not matter in your situation. Without knowing more, I couldn’t give more information.
The only other thing I would mention, is depending on what state you live in, you could possibly owe taxes on this inheritance. Make sure to consult with a CPA to find out how you could be affected in your state. The other thing to keep in mind, is that most inheritances don’t last as long as planned. The statistics are not pretty on this. The statistics say half will be lost within a year through spending or bad investments. So spend or investment mindfully.
Good job with your current situation. Tax advantage accounts would be the place to put your extra savings from a mathematically standpoint. But the experience of working with a taxable account would give you an opportunity to continue to learn about investing. Also, in the long run, a taxable account could give you some flexibility come retirement time.
But the good thing is, based on what you have accomplished so far, either way would be an okay option for your extra $200 a month.
First of all, great job on saving what you have already. As boring as it sounds, you should just probably keep doing what you are doing. Depending on what your expenses are, your current $7K is probably a good start on your emergency fund. If you want to save for a home, you might want to have a seperate account for that goal. With rates rising, there are "some more than zero" accounts out there. I assume you have a shorter time frame, is why I wouldn't suggest putting your 7K in the market or some other investment. The risk needed to beat what you could get in an savings account most likely wouldn't make much sense.
Another thing to keep in mind, is that you can borrow from your 401k for a first time home buyer. I normally suggest not taking loans against your 401k, but this is an option for someone in your situation. It's always wise to run the numbers to see what options would be best for you.