Mulberry Lane Advisors, LLC
Managing Member and Co-Founder
Lawrence is a Managing Member and Co-Founder of Mulberry Lane Advisors, LLC.
Prior to forming Mulberry Lane Advisors, Lawrence had worked for more than a decade in the financial industry with firms such as Merrill Lynch, Northwestern Mutual and Penn Mutual. Prior to that, he worked in several positions with General Motors throughout North America.
Lawrence has also been an Adjunct Professor at Rider University several times over the years at both the graduate and under-graduate levels.
Lawrence graduated with honors from Rider University with a Master’s in Business Administration with a concentration in Finance. Lawrence also holds Bachelor’s degrees in Mathematics (Cum Laude) and Secondary Education (Cum Laude) from East Stroudsburg University. Lawrence also attended The American College (earned CFP®), the University of Maryland, Drexel University (post-grad/Doctoral studies) and the University of Pennsylvania (Executive Studies).
Lawrence holds Insurance licenses in Florida, Maryland, New Jersey and Pensylvania. He also has his Series 7 and Series 66 securities registrations.
Lawrence has been a member of MENSA since 2003.
Lawrence lives in Bucks County, Pennsylvania and enjoys traveling with his family, the outdoors, attending concerts and sporting events, and playing multiple musical instruments.
MBA, Finance, Rider University
Securities and investment advisory services offered through Ameritas Investment Corp. (AIC) member FINRA/SIPC. AIC is not affiliated with United Professional Advisors (UPA). Additional products and services may be available through UPA that are not offered through AIC. Securities products are limited to residents of NY, AZ, CA, FL, GA, IL, MA, MD, NC, NJ, NV, OH, PA, SC, TX, VA, CT, TN
Since the value of your house fluctuates regardless of the amount of equity that's in it, and since mortgage interest is still a deduction on your tax return, I would say that there is no reason to pay off the mortgage. That $95,000 invested will make more in investment income than you will pay on mortgage interest. Also, if you pay the mortgage off, you have now given control of that equity to the bank. This is because, if you ever wanted to tap into that equity, you would have to go to the bank to get a loan against the home.
If you are more than 10 years away from retirement, then absolutely. Even if you have less than 10years to retirement you would want to consider it as the taxability of social security and the calculation of your Medicare premium are based on provisional income calculations. Typically the only income that does NOT count as provisional income is from a Roth account or withdrawals from your cash-value life insurance policy. - Lawrence.Sorace@MulberryLaneAdvisors.com
The best thing to do is to lock in your gains and your income by shifting to a variable annuity and taking the allowed systematic withdrawals. Doing so will protect your income draw from a down-turn while still staying in the market. Many will guarantee a 5% withdrawal for life (you are currently withdrawing about 4.4%) and are RMD friendly which means that if your RMD is ever greater than the maximum allowable withdrawal, they will allow the additional funds to be withdrawn without affecting your income guarantee for life. Most also allow for instant release of the funds upon the occurence of a long-term care need. Understand that many annuities are now just guaranteed investment accounts and are rarely actually annuitized. There are different types of annuities and since I don't know you, I can't necessarily say which would be appropriate for your situation. An annuity is just a tool to get you where you want to go. The right tool for the right job is important. You wouldn't use a screwdriver to hammer a nail so (in your case) an investment account won't guarantee steady income for life with no risk to the amount of withdrawal. The variable annuity will guarantee the withdrawal amount for life (ensuring that you never run out of money), let you participate in market growth (allowing you to have a greater equity/bond ratio increasing long-term returns!) and some also guarantee the amount you pass on when you die. Pick an independent advisor that is securities licensed and that is not a "captive" agent. Example: Mass Mutual agents are generally captive agents that tend to only recommend Mass Mutual products. When you're a hammer, everything's a nail. - Lawrence.Sorace@gmail.com
Most likely, no. Remember, the 10% tax penalty is just that,; a penalty tax over and above the income tax that you will pay on the entire withdrawal amount at your top tax-bracket rate. I would suggest a loan consolidation or, if you have a cash-value life policy, surrender any paid-up additions. They would be tax free. - Lawrence.Sorace@MulberryLaneAdvisors.com
As a 50-something person, the best thing is to only put the minimum amount into your 401K to get the maximum match. If you are not married, the other 8% should be put in a Roth IRA. (Would you rather pay taxes on the seed or the crop?) If you are married, put the 8% into cash-value life insurance policy and take the minimum amount of insurance for the maximum premium you can afford. Why? Because it grows tax-deferred and can be distributed tax-free. The reason to take the minimum insurance is so that the majority of your premium will be going to the cash savings and keep the internal cost of insurance low. If you die too soon, the insurance will cover lost wages for your spouse. If you live too long, you can systematically withdrawal the cash-value tax-free. The reason it is tax-free is because it is considered a "loan" against the death benefit. It is important to select a mutual life insurance company that has been in business that does not have a high internal cost of insurance, has not paid dividend bonuses, has a low fixed or variable loan rate and one that operates on direct recognition. It takes a good 5-10 years for the cash-value to equal the premiums you have paid. However, after that the cost of insurance takes a steep drop and the cash value grows exponentially. Best advice I ever got as a 20-something. So glad I did it. Best of Luck to you. I congratulate you on starting early. - Lawrence.Sorace@MulberryLaneAdvisors.com