Online financial advisors (possibly help me save for a Sheep Hunt)

[MThuntr]

Hey crew, I need some help with planning what to do with a small 401(k)/TSP inheritance and when to time the transfers for tax purposes.

Anyone have recommendations on potential financial advisors I could talk to?

 

[ismith]

Is it enough to build a time machine to get back to 2009 so you can load up on bitcoin? (no recommendations but here's a bump for your thread)

 

[jryoung]

I recently had to do some work on our 401K plan and this was an item that came up in discussion. Ultimately, the answer is.....it depends. It depends on how the plan was structured, who you are in relationship to the owner and what rules are for the plan. Below is a link to T Rowe who we just moved our plan to. Below that is what Fidelity says, which is a bit easier to digest. You'll need to get your hands on the plan rules first to get a bit better clarity of your options.

https://www.troweprice.com/content/dam/iinvestor/Forms/ProfitPensionPlanDistribution.pdf

Inherited 401(k): What to know if you're a 401(k) beneficiary | Fidelity

If you've inherited a 401(k) from a parent, spouse, or someone else, here are the rules to know.

www.fidelity.com

 

[LopeHunter]

Depending on the tax code in place at time of the death of the original holder, you may have to take RMDs or have to take withdrawals of the entire amount of the account over 10 years. First step is to determine what the code requires. If you fail to take the required withdrawal in the required time period then a 50% penalty may apply on the funds which were not properly taken on time.

If your inherited retirement vehicle has a 10 year window and the withdrawals will be a taxable event which is likely unless there is Roth treatment, try to estimate what your marginal tax rate will be for each year over those ten years when withdrawals need to be taken.

I just retired so my marginal Federal tax rate under current tax laws will dramatically decline starting 2025 so I am able to take withdrawals with a smaller tax hit than were my options in the past few decades.

Tax rates in the future might go up or down or stay the same, though, so will need to roll the dice by either action or inaction.

I presume Federal income tax rates will rise over the remainder of my lifetime so am trying to position our investments into holdings that pass to our beneficiaries at non-taxable items (Roth IRAs) or will get a step-up basis as I pass and my spouse passes so as much of the gain as possible will erased by death before goes to our beneficiaries.

Inflation also create a sizable "fake" gain on inflated value vs. original tax basis which can generate a significant tax hit.

I think inflation will increase due to the national debt increasing each year from spending more than collect plus expiring government bonds are being renewed at a higher interest rate.

I do not know for sure re tax rates or inflation so I am rolling the dice as I prefer action over inaction. I prefer to drive the car than be a passenger.

 

[BigHornRam]

Stay away from this guy.

 

[SAJ-99]

Stay away from this guy.

If the question is so simple to answer, why didn't the interviewer just give it to us?

 

[BigHornRam]

If the question is so simple to answer, why didn't the interviewer just give it to us?

That would make a boring documentary that no one would watch.

 

[SAJ-99]

That would make a boring documentary that no one would watch.

Exactly. But sharing videos that imply it is simple and make a professional look bad are perfectly fine in the era of social media.

 

[BigHornRam]

Exactly. But sharing videos that imply it is simple and make a professional look bad are perfectly fine in the era of social media.

Knowing who the interviewer was, and what her philosophies are, Bernstein should have passed on the interview.

 

[BigHornRam]

Bernstein was having a difficult time explaining Modern Monetary Theory (MMT) in the clip, which is understandable. He should have just called it the Magic Money Tree and moved on.

"Support for MMT grew in large part thanks to the internet, where economists explained the theory on popular personal and group blogs, the idea of a trillion-dollar coin was widely discussed, and supporters shared a clip of former Federal Reserve Chairman Alan Greenspan saying pay-as-you-go benefits aren’t insecure because “there’s nothing to prevent the federal government from creating as much money as it wants and paying it to somebody.”
6

Political leaders like Alexandria Ocasio-Cortez and Bernie Sanders have espoused MMT, and economist Stephanie Kelton, who first came across Mosler’s ideas on the listserv and is now arguably the face of the theory, served as chief economic adviser to Sanders during his 2016 presidential campaign."

 

[BigHornRam]

Poor old Jared was thinking he might get lucky after the interview, meanwhile Stephanie was getting ready to use him up with a 60 Minutes style edit job!