This last method of spending down different accounts is probably the most popular. Method #3 I’ll call the Pro-Rata System. Simply put, you take a proportionate percentage out of each type of account every year. For example, say you have…
Last week, we talked about spending down retirement money starting with already-taxed assets, then tax-deferred accounts, and ending with Roth IRAs. This week, we look at spend down Method #2: Tax-deferred (Traditional IRAs, 401(k)s) first, taxable (non-retirement) accounts second, Roth…
A question that I am asked to address in many financial plans for pre-retirees is, “in what order should I take out my assets?” In other words, does it make sense to tap tax-deferred plans first or last? When should…
Finding a financial planner is a scary process. Kind of like finding a hairdresser, but the hairdresser decision is MUCH more important. You have similar questions in the relationship. Will I be listened to? Is this person competent and experienced?…
Have you ever wanted to meet with someone to get advice on your finances, but didn’t feel comfortable hiring a financial planner? Or, do you just have a few questions, but don’t need a big financial plan? Good news! There…
As I sit here writing my monthly blogs, my doorbell rings. It’s my next door neighbor (who I have not met before – the house is a rental with lots of turnover) coming to inform me that my son and…
