• Home
  • About
    • Our Team
    • What is a certified financial planner?
    • About our flexible fee system
    • What We Do
  • Services
    • Wealth Management & Financial Planning
    • Investment Planning
    • Spirit Fiduciary Partners
    • Retirement & Estate Planning for Texas A&M University employees
  • Current Clients
  • Internship Opportunities
  • Blog
  • Newsletters
  • Contact
TRADITIONS WEALTH ADVISORS
  • Home
  • About
    • Our Team
    • What is a certified financial planner?
    • About our flexible fee system
    • What We Do
  • Services
    • Wealth Management & Financial Planning
    • Investment Planning
    • Spirit Fiduciary Partners
    • Retirement & Estate Planning for Texas A&M University employees
  • Current Clients
  • Internship Opportunities
  • Blog
  • Newsletters
  • Contact

RETIRING?  DON’T MAKE THESE REAL ESTATE MISTAKES

10/21/2020

0 Comments

 
Retirement can be an exciting time in one’s life.  Unfortunately, some find themselves in less than favorable circumstances due to unwise real estate moves.  Avoid these mistakes if you are planning a move in your retirement.
  1. Don’t make impulsive decisions—Take time to explore all factors that go into any move you may be considering.  Discuss your ideas with a local realtor as well as with your financial planner.
  2. Remember that retirement isn’t the same as a vacation—Vacationing in a place is not the same as living there.  Before making a move to a favored vacation spot, spend time in the area. Observe the surroundings.  Take notes. Imagine the area as your permanent home.  Do you have amenities that work for you year-round? What about the weather? Is your vacation spot suitable for your lifestyle all year?  What about the weather?  Also, can you afford the type of home that you want and the ongoing costs?
  3. Don’t forget your health and mobility—Consider how your life may change as you age.  Does the location provide you with the medical access that you need?  Planning for these possibilities now may save you from having to move again if your health declines.
  4. Keep in mind the costs—You are thinking about buying a second home or selling your current house and buying something maybe bigger and nicer.  Run the numbers carefully.  It is very easy to underestimate all the costs of homeownership. Consider the following:
    1. Homeowners association fees
    2. Insurance
    3. Maintenance
    4. Taxes
          Can you afford these without depleting your retirement?
     5. Have a plan for the proceeds—If you make a nice profit from downsizing, consider what you will do with that extra money.  Although purchasing a new car, or taking lavish vacations sound good, investing your proceeds may be just what the doctor ordered to be confident you have the retirement nest egg, you are looking for.

Check with the professionals before making your move.  Contact Brien L. Smith, CFP® or Sarah D. Buenger, MPAS®, MSPFP, CFP® at 979-694-9100 or visit our website at www.TraditionsWealthAdvisors.com

(Kathy Massey 2020 BCSRAOR president)
0 Comments

TRICKY Questions About Money & Retirement

10/9/2020

0 Comments

 
Picture
1. We should have 15% pre-tax in our retirement plan but how much should we save post-tax in our IRA or saving accounts?
There is no single percentage that works for everyone but if you can save 15% in pre- and post-tax you are doing good. Other things to consider are to make sure you are contributing enough to get your employer’s full retirement match if you have a 401(k). Next, I would make sure you have three months worth of an emergency fund. Then I would max out your Roth IRA contribution. Finally, if you have any extra money left, then I would put it in savings.

2. In our volatile market, what is your suggestion for those that are already retired to make their retirement last longer?
Make sure you are meeting with your financial advisor to discuss this more in detail. Based on your age, you should be invested correctly to get you through the ups and downs of the market. Also, making sure that your expenses are low is the best way to make sure your retirement lasts. Even getting a part-time job so you don’t have to pull money from savings is another option.

3. My employer is no longer contributing to my 403(b) or 401(k). Should I stop contributing to my 403(b) or 401(k) and move those funds to an IRA instead?
The only way to roll over your 403(b) or 401(k) to an IRA is to leave your job or reach the age of 59 ½ (called an in-service distribution). You should keep contributing to your 403(b) or 401(k) even though you are frustrated that your employer is no longer contributing.  
​

4. In January of 2020, I contributed the max of $7,000 to my Roth IRA. Now I won’t have enough earned income to contribute that amount. Is there a penalty? What should I do?
You’ll need to withdraw the excess amount plus their earnings, and you’ll want to do so before you file your taxes for 2020 next year to avoid a 6% penalty on the excess contribution. You’ll owe income taxes on the earnings (but not the amount you contributed). If you’re under 59 ½, you may owe a 10% early withdrawal penalty on the earnings, but again, not on your contribution.

5. I make less than $35,000 annually, have little in savings, and am 39 years old. What is the best IRA for me?
A Roth IRA is probably best for you. You won’t be able to deduct your contribution when you do your taxes, but all the money you put in there AND all the money you earn will be all yours tax-free when you retire. As far as choosing an account, look for low fees (aim for 0.25% annually or less) and no minimum deposit.

6. Does your IRA contribution affect how much you can contribute to an employer-sponsored account?
The $6,000 contribution limit (or $7,000 if you’re 50+) is the total limit for all IRAs that you have. Your IRA contributions don’t affect how much you can save in an employer-sponsored account, like a 401(k). So if you have both a traditional IRA and Roth IRA, you can only contribute $6,000 or $7,000 total between the accounts. If you have a 401(k), you can still contribute up to $19,500 in 2020 (or $25,000 if you’re over 50).

For questions or concerns regarding this article, contact Brien L. Smith, CFP® at Traditions Wealth Advisors Brien@TraditionsWealthAdvisors.com or 979-694-9100.  
 
Source: Hartill, Robin. 29 September 2020. https://www.thepennyhoarder.com/retirement/retirement-questions/?aff_id=128&aff_sub3=/retirement/retirement-questions/_20201002_social-organic_Twitter
0 Comments

    Archives

    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    October 2018
    August 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    August 2017
    January 2016
    December 2015
    September 2014
    June 2014

    Categories

    All
    Fee Only
    Financial Advisors
    Personal Information Security

Let our team work for you. Call 979-694-9100 or
email michael@traditionswealthadvisors.com.


Picture
TRADITIONS WEALTH ADVISORS
2700 Earl Rudder Frwy South, Ste. 2600
College Station, TX 77845
OUR SERVICES
- Wealth Management & Financial Planning
- Investment Planning
- Spirit Fiduciary Partners
- Retirement & Estate Planning for Texas A&M University employees

VISIT OUR BLOG:  Stay current with industry news and tips.
Picture
Picture


ADV  |  Privacy Policy
© COPYRIGHT 2015. ALL RIGHTS RESERVED.
  • Home
  • About
    • Our Team
    • What is a certified financial planner?
    • About our flexible fee system
    • What We Do
  • Services
    • Wealth Management & Financial Planning
    • Investment Planning
    • Spirit Fiduciary Partners
    • Retirement & Estate Planning for Texas A&M University employees
  • Current Clients
  • Internship Opportunities
  • Blog
  • Newsletters
  • Contact