Annuities Question
Q: What are the pros and cons of fixed annuities? A: Generally, fixed annuities are good investments for someone who has a very low risk tolerance and wants “safe money”. They allow owners to lock in to a guaranteed rate of return and give you peace of mind knowing that you can depend on those payments. […]
Cashing Out of Investments
Q: I cashed out of an employee stock purchase (ESPP) plan through my previous employer in 2015. After that, I placed the proceeds in savings and the options I am exploring are: Invest some of that money in an investment vehicle to reduce 2015 tax burden. Put the rest in an investment vehicle that allows for some […]
Inheritance – Taxes and Penalties
Q: I just received 3 CD’s as a bequest from my dad. Will I have to pay any taxes on this inheritance? I would like to take some cash out of one of the CD’s, and would like to know if there are any taxes or penalties if I do this. A: There are a number of […]
Small Pension Question
Q: I have a small pension with a department store that I worked at part-time. There are several payment options. For example one is a single life annuity of $82.27 or a lump sum payment of $10,701.68. Generally the monthly payments would be the best choice; however, I do have a concern because this department store has […]
Retirement Plan Question
Q: I just utilized your Social Security Optimizer on the website and I have a question. In the recommended solution section it states that my spouse should file and then immediately suspend his benefit. My plan is to retire at age 70, which is in 2017. Do I need to file and suspend now or can I just […]
SS Question
Q: I was a federal employee and did not pay into Social Security while working for the government. However, I was fully vested and, due to the WEP Act, I only draw a small portion of my Social Security benefits. I filed already at age 66 and am currently drawing social security as well as a […]
General Finance – SEP IRA
Q: I’m employed full time in a sales position. My employer has decided not to offer a 401K anymore, so I’m trying to decide where and how to continue my long term savings. In addition, I DJ on the weekends as a 1099 sole proprietorship. My income can fluctuate between $80K – 100K a year. […]
General Finance Question – Roth IRA & Debt
Q: Is it a good idea to cash in my Roth IRA worth $12000 to pay off a credit card of $9000 & a student loan of $3000. My retirement is $158000. A: This is very difficult to answer without knowing all of the details of your personal situation including income, risk tolerance, time horizon, […]
General Finance Question – Cash On Hand
Q: My family of 4 keeps 100K in cash, has 100K in mutual funds (small, mid, global & bond), 10K in 529, maxes 401K contribution & has no debt (house paid-off). Largest weekly expense is child care (nanny). We dollar cost average into Vanguard mutual funds & 529 (GA) every two weeks. My husband is […]
Retirement Planning Question – 401k Fees
Q: My 401k administrator has finally sent their fees. I am 100% into Vanguard’s S&P 500 index. The charges are $1.70 per $1000 or .17%. Is this too high? A: Those are extremely low fees. You are in a great spot!
