Alan Moore, MS, CFP®
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Comments
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On the Blog Post Just Ask “Do You Have A License?”
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On the Blog Post How Can I Reduce My 2012 Taxes? Make A Traditional IRA Contribution!
Alan Moore, MS, CFP®
9:12 am on Monday, March 4, 2013
ReplyIf the spouse has access to a retirement plan through their employer, then they will be subject to the lower IRA contribution limits. The law is written so that is only matters if there is access to a plan, not necessarily if they use the plan. Sorry for the bad news!
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On the Blog Post Questions To Ask When Interviewing A Financial Advisor
Alan Moore, MS, CFP®
2:08 pm on Tuesday, January 15, 2013
ReplyHey Craig,
Most of the legislation that was introduced got watered down thanks to the very well paid lobbyist that work for Wall Street insurance and investment companies. All investment advisors are required to provide clients with an ADV Part 2 which has information about compensation buried inside. Feel free to e-mail me and I will send over a copy of mine... see how long it takes you to get through it!
401(k)'s are now required to disclose fees, and you should have received a disclosure statement at some point. If not, reach out to the plan administrator to get a copy of the fee disclosures.
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On the Blog Post Things To Consider Before Co-signing A Student Loan
Alan Moore, MS, CFP®
8:26 am on Thursday, January 3, 2013
ReplyI am always amazed that students seem to ignore the job and salary prospects when making the decision of which degree to receive. It should also play into what school you attend. For instance, getting a degree in Social Work is admirable, but it would be better to attend a public university instead of paying for private school tuition. The salary will be the same, but you could have significantly less student loans at the end.
These conversations need to happen, but we don't seem to have them often enough.
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On the Blog Post Financial Porn: 3 Reasons to Turn Off the TV
Alan Moore, MS, CFP®
4:46 pm on Tuesday, December 18, 2012
You are correct. I believe every investor is significantly better off investing in index funds and individual stocks.
I don't believe anyone, including the smartest people on wall street, know which stocks are going up and which will go down. In the end, actively managed mutual funds underperform index funds over time. And investing in individual stocks puts too much of your retirement future in the hands of a single company. Just not a good idea.
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On the Blog Post Things To Think About Before Getting A Pet
Alan Moore, MS, CFP®
7:52 am on Tuesday, December 11, 2012
I have looked into pet insurance in the past out of curiosity, but found it really didn't make sense financially. Adverse Selection, ie. only people with sick pets buy it, makes it too expensive of an in insurance option.
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On the Blog Post What Happens To My 401(k) At Retirement?
Alan Moore, MS, CFP®
8:07 am on Tuesday, December 4, 2012
ReplyCraig, thanks for the comment. Permanent disability waives the 10% penalty on both IRA's and 401(k)'s. With proper planning however, this would be avoided by having an emergency fund and long term disability insurance. That would allow someone to delay taking money out of the retirement accounts until retirement age.
Social Security Disability has the most strict definition of "Disability" such that if you can work as a Walmart greeter, you probably won't qualify. This would certainly make you eligible for waiving the 10% penalty.
Nuitari, generally if you roll a 401(k) to a Roth IRA you do have to pay income tax, but then the money grows tax free and there is no 10% penalty. Roth 401(k)'s allow you to save money into a 401(k), pay the taxes today (instead of taking a deduction) and it grows tax free. Here is a post on the topic: http://www.serenityfc.com/investing/roth-401ks-and-roth-iras-what-you-need-to-know/
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On the Blog Post Going Paleo - Lessons Learned About Personal Finance
Alan Moore, MS, CFP®
8:42 am on Saturday, November 24, 2012
ReplyExpense was something I was concerned about. We try to buy fruit and vegetables that are on sale and in season. And it is very difficult to eat out, which means we are saving a lot of money by eating at home most meals. This has offset the additional expense of eating Paleo.
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On the Blog Post What Does It Mean To Be Wealthy?
Alan Moore, MS, CFP®
12:10 pm on Tuesday, November 13, 2012
ReplyKari, your point is certainly well taken... For many, wealth may have nothing to do with actual money. But typically, it takes a certain level of income/wealth to achieve the goals of spending time with family, good health, and such.
Dave, so if I understand, you are saying wealth is having a high income because it allows for discretionary money to buy "toys." Do you consider someone with high savings, but no income, to be wealthy as well?
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On the Blog Post Funding A Startup Business With IRA/401(k)
Alan Moore, MS, CFP®
3:43 pm on Wednesday, October 31, 2012
ReplyGreg, you COULD, but you will lose 25% - 45% (depending on your tax rate) of your money to taxes and penalties.
Craig, thanks for the comments and the idea for the post.
Alan Moore, MS, CFP®
2:44 pm on Monday, April 15, 2013
Bernie Madoff certainly had more issues than just his licenses, but is someone had said no because he had them, they would have been spared. Keep in mind that Madoff got away with what he did primarily because he didn't use a 3rd party custodian , such as Fidelity or Schwab, to hold client money. That way, he was able to send doctored statements making everyone believe their money was doing great.
Thanks for the great comments!