Rhame & Gorrell Wealth Management
Financial Planning Manager
At Rhame & Gorrell Wealth Management, Kyle McClain oversees Financial Planning operations, interfaces with clients, and serves on the Investment Committee. In his role as Financial Planning Manager, Kyle works closely with clients as part of an interdisciplinary team of investment and financial planning professionals. He coordinates ongoing financial planning initiatives and facilitates communication between clients and the advisory and investment teams.
Prior to joining RG Wealth, Kyle spent time with Fidelity Institutional Asset Management as an Investment Consultant and with Merrill Lynch as a Wealth Advisor. He graduated Magna Cum Laude with a dual degree in Finance and Economics from the University of Alabama. He also completed his Certified Financial Planner, CFP® program at Texas A&M University in the Spring of 2018.
BS, Finance, Economics, The University of Alabama
Certified Financial Planner Program, Texas A&M University
My condolences for your loss - it's never easy to shoulder responsibility after the loss of a loved one. This question requires a bit more information before a quality answer can be given. The most important thing to understand is the structure of the trust as well as the composition of the assets inside of the trust. Once that information is determined, you can align the assets to achieve the goals of you and your siblings. The first step would be to determine the level of risk you're comfortable taking with the trust assets. Then, a quick analysis of the assets will tell us if there is more risk being taken than you can accept. Only then can you make an informed decision as to an action plan. Other factors will apply, such as: is this a simple or complex trust? What do the trust documents dictate in terms of asset transfer, etc?
If you'd like to determine your personal risk tolerance, feel free to do so here. If you'd like to discuss that process with a financial professional, reach out to us for a no-obligation initial consultation.
The answer to this question really depends on what you mean by supplementing your income. If you'd like to generate current additional cash flow, municipal bonds may make sense as the coupon payments may be exempt from federal taxes. If you'd like to invest for a later date, that would probably lead us in a different direction. The important thing to do is to quantify your risk tolerance and come up with a portfolio that is structured to achieve the goals you have in mind. If you'd like to discuss that process with a financial professional, reach out to us for a no-obligation initial consultation.
On the whole, I agree with the above assessments that you should continue to fund your retirement accounts and pay down debt as cash flow permits. Another factor that this question brings to mind is the asset structure of the rental properties. Do you own them outright or inside of a liability protection vehicle such as an LLC? The inherent liability that goes along with rental property management can be largely mitigated through the use of business entities for asset protection. No one likes to imagine the worst occurring, but should a liability event become reality, a judgement could be reached in excess of what a umbrella insurance policy may protect against. In that event, without the liability protection of entity structure, claimants could pursue other personal assets. While ERISA protection should cover the retirement accounts and homestead laws protect a personal residence, anything else of value could be at risk.
If you have not done so already, partnering with an estate-planning attorney versed in business entity structure can make all the difference. Feel free to reach out to us for a no-obligation consultation if you should have other questions regarding this matter.
The answer to this question is largely dependent on some other factors, including the level of disability, plans for the IRA funds, and more. Has your wife separated from service at her company? All of these are factors that will affect the answer to this one. Feel free to contact us for a no-obligation consultation.
I'd like to offer my condolences. While losing a loved one is never easy, your relative has left a significant financial legacy that should be cared for with diligence. Another factor to consider throughout this process would be financing a portion of the house and funding the payments with income from the inheritance principal. This would allow you to reap the benefit of living in the residence as well as retaining the inheritance principal for the purpose of generating further income. The reality is, you need a detailed cash flow projection considering income needs, financing needs, etc. I'd be happy to run some preliminary numbers for you on a no-cost, no-obligation basis. Feel free to reach out to us at your convenience.