Millennial Wealth, LLC
Co-Founder, Chief Compliance Officer
Chad Rixse spent 3 years in the bank-run private wealth management world working primarily with high net worth families and individuals. As much as he enjoyed helping this demographic, he realized that many people, particularly those from his generation, were far too often left behind.
Chad wanted to change that.
Chad's mission in life has always been to help others. As a child, he wanted to become a doctor because he found that helping others was such a rewarding experience for him. Although the medical field did not become his path, he's found another way to fulfill this mission.
The truth is, Chad believes his generation faces a unique set of circumstances. They live in a digital era surrounded by technology and a constant stream of information. Many of them are college educated and burdened with student loans. They lived through, and very well remember, one of the worst financial crises in history. Plus to top it all off, they were taught very little in school about healthy financial habits and preparing for the future.
None of this sat well with Chad. As a Millennial himself, he has experienced many of these struggles first-hand. He knew he had to act. He knew he had to actually do something about it. When he found Levi, it quickly became clear how he was going to make that happen.
BA, Spanish, University of Washington
Assets Under Management:
Millennial Wealth is an Investment Adviser registered with the State of Washington. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. We do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. The information provided is subject to change without notice.
You can only claim social security retirement benefits based on your ex-spouse's record if your marriage lasted 10 years or longer (even if they remarried), and:
- You are unmarried;
- You are age 62 or older
- Your ex-spouse is entitled to social security benefits or disability benefits; and
- The benefit you are entitled to receive based on your own work is less than the benefit you would receive based on your ex-spouse's work.
Typically, if you remarry, you cannot claim benefits on your ex-spouses record unless your later marriage ends. Sounds to me like you are not eligible to claim benefits based on your ex-spouse's record simply due to the fact your marriage to them did not last 10 years.
No, IRA distributions do not count towards earned income for the sake of Social Security Retirement Benefits. Many retirees have savings they built in IRA's and use it to generate retirement income. That is the entire point of having an IRA. The Social Security Administration is only concerned with earned income which would come from either a job or net earnings from self-employment income. They are also only concerned with earned income before you reach full retirement age. Once you reach full retirement age, there's no reduction in your benefits for having earned income in addition to your social security benefits. These measures are in place to prevent people from "double-dipping," per se for those who continue to work between age 62 when they become eligible for social security benefits and their full retirement age. If you want to take money out of your IRA to pay off credit cards, all you need to be concerned with in the short-term is paying ordinary income tax on the distribution if it is a traditional IRA. If it's a Roth, you are over age 59 1/2 (which I'm sure you are if you are receiving social security retirement benefits), and the account has been established at least 5 years, any distributions are tax-free. Neither will affect your social security benefits. Hope this helps!
There are a number of reasons for maximizing 401(k) contributions before contributing to a Roth IRA, but it really depends on your current situation. Roth IRA's, first and foremost, have income limits on being able to make contributions. The more you earn, the more they phase out, but it's dependent upon your modified adjusted gross income. If your filing status is single, the phase-out starts at $120k/yr and end at $135k/yr (i.e. you can't contribute at all if you make $135k+/yr). If your filing status is married filing jointly, the phase-out starts at $189k/yr and ends at $199k/yr. If you fall into this category but still want to be able to contribute to a Roth IRA, the only way you could do this would be to lower your MAGI. One way of doing this, especially if you are right on the cusp, would be to maximize your regular 401(k) contributions as this lowers your gross taxable income. 401(k)'s allow for contributions up to $18k/yr if you are under age 50, and $24k/yr if you are over age $50k. If you are married filing jointly and your household income is $195k/yr, contributing at least $6k/yr to your 401(k) would get you below this level and allow you to max out contributions to a Roth IRA. If this is not possible, however, and your household income is, say $300k/yr, many employers offer a Roth portion to their 401(k) plans that you could take advantage of up to the 401(k) contribution limits and there are no income restrictions on that. Determining what is most advantageous for you, in the long run, depends on what your current average annual tax liability is versus your expected average tax liability in retirement as well as determining what options are available to you. If you are well below the income limits, for example, you might prioritize Roth IRA contributions over 401(k) contributions, but usually, they are done in conjunction simply due to the match employers offer in 401(k)'s (free money for you), and the much higher contribution limits.
There are a few things you can try:
- Try negotiating paying a fee for the collections agency to remove the report from your credit. This is not your best option and more often than not, ends in a "no".
- Ask the collection agency for a goodwill deletion. If this was an isolated incident, your credit history is great, and you paid the debt, you can prove you are not a risky borrower and may be able to negotiate a goodwill deletion.
- Keep evidence of the start date of the delinquency and when it was finally paid off. Negative reports like this can only stay on your credit report for 7 years. If it has already been 7 years since it went delinquent and was paid within that time frame, you can request it be removed.
- Try disputing it. If there's even the slightest inaccuracy on the negative entry in your credit report, you should make a note of it and demand that the information be updated or removed entirely. Also, sometimes creditors will go back to look at corrections, but can't validate them. They are required to remove those entirely in that instance.
I think your best bet is to try to work with the collection agency that handled the bad debt and see what you can make happen with that unless it's already been 7 years. Best of luck to you!
I see buying on down days as an added plus to portfolios over the long run, but only when we see big market fluctuations. We never know when these will happen and they can be quite sporadic. This is a very difficult long-term strategy to be successful at. Instead, you should take advantage of compounding interest and dollar-cost averaging by buying into the market on a regular, preferably monthly, basis. Dollar-cost averaging smooths out volatility by allowing your to buy in at various different price points over time. The regular contributions continue to add to the principal, thereby fueling the compounding of returns. Sticking with your automatic contributions is definitely your best bet for success as a long-term investor.