How will today's high inflation impact my retirement?

Inflation is definitely a concern, and the media frenzy around current inflation likely isn’t helping ease your current fears. While you are right to be concerned about inflation, it doesn’t necessarily mean it will threaten your retirement plan, even if today’s inflation lasts longer than we first expected.

| Inflation is surprisingly more dangerous than a market crash. |

| Inflation Vs. Social Security and other ‘Guaranteed’ Income |

| Using Multiple Inflation Rates |

| What Should You Do? |

Retirement Planning, InvestingJoshua Escalante Troesh, CFPAugust 1, 2022Retirement & Legacy, Retirement Planning, Individual Retirement Account, Inflation Risk, 401(k)

How do I fix a 60-day rollover missed deadline?

I am so sorry this happened to you. Unfortunately, your situation is a common one for people when they retire or change jobs and move their 401(k) account. Handling this rollover on your own creates a lot of tax problems, even if you do everything perfectly. Below are some ideas to help you, but first the answer to your initial tax questions.

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Retirement Planning, Tax PlanningJoshua Escalante Troesh, CFPJuly 23, 2020Retirement & Legacy, Retirement Planning, Individual Retirement Account, IRA Rollover, 401(k), 401(k) Rollover, Indirect Rollover, Direct Rollover

Don't ask 'What Can I do?' . . . say 'What I Can Do Is'

It’s not the responsibility of others to tell us how we can help society become a better society. It’s our responsibility to identify the actions we can take, no matter how small, to move society in the direction of justice.

In this spirit, here is my statement of #WhatICanDo to make the part of America I have influence over a more just and safe society for black people and all people.

Joshua Escalante Troesh, CFPJune 5, 2020401(k)

How will a 401(k) withdrawal impact my taxes at year-end?

Assuming the withdrawal is going to be spent and not rolled over to another retirement account, a partial withdrawal from your Traditional 401(k) will be treated as taxable income when you file your taxes next year. The amount the 401(k) provider deducts and sends to the IRS will also be counted as a prepayment of your taxes for the year, similar to how withholdings worked while working. . . .

Tax Planning, Retirement PlanningJoshua Escalante Troesh, CFPApril 15, 2020Retirement & Legacy, Retirement Planning, 401(k), ROTH 401(k), IRA Rollover, Tax Planning, Tax Deduction, Federal Income Tax

Where should a first time investor start?

You can invest in any type of investment account, including retirement accounts, through a brokerage company, a mutual fund company, or through Purposeful SP. At your age, and with over 30 years until you retire, you should consider investing heavily in a broadly diversified stock portfolio which includes both U.S. and international stocks. With three plus decades to go, you only need bonds in your portfolio to help you sleep at night and for rebalancing opportunities. In other words, after doing your research, choose a bond percentage which makes YOU feel comfortable that you have enough "safety" in your portfolio.

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Beware Portfolio Advice From Books, Magazine, or the Internet
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InvestingJoshua Escalante Troesh, CFPJanuary 30, 2020Starting Out, Building Wealth, Financial Foundation, Roth IRA, IRA Penalty, 401(k), Individual Retirement Account

What Does California's AB5 Mean For My Business?

Business AdvisingJoshua Escalante Troesh, CFPJanuary 23, 2020Social Security, 401(k), Business Owners, Small Business, AB5, Independent Contractor

How should I invest my extra income?

Investing, Retirement PlanningJoshua Escalante Troesh, CFPDecember 25, 2019Stock, Inherited Stocks, Investment portfolio, 401(k), Roth IRA, Individual Retirement Account, Starting Out, Building Wealth, Choosing an adviser, Financial Advice

What are Self-Employed options to save for retirement without a 401(k)?

Retirement Planning, Business AdvisingJoshua Escalante Troesh, CFPOctober 8, 2019Building Wealth, Business Owners, Retirement Planning, HSA, Health Savings Account, Solo 401(k), 401(k)

What is the best way to save for the future outside of a work retirement plan?

It sounds like you have a good handle on your retirement savings based on your contributions to both the TSP and your workplace plan, assuming you are contributing at least 10% to 15% of your income. If so, begin investing outside your retirement accounts in a taxable investment account to fund other goals such as buying a home, starting a business, or taking a major vacation.

Investing, Life PlanningJoshua Escalante Troesh, CFPSeptember 18, 2019Starting Out, Building Wealth, Buying A Home, Young Families, IRA Rollover, Individual Retirement Account, Thrift Savings Plan (TSP), 401(k)

Would Getting a Paper Divorce Help Financially?

Yes, getting a paper divorce can help you financially but it can also be a financial negative depending on your personal situation. As with most things with Personal Finance, the answer is it will depend on a large number of factors related to your family's finances. Below are a few of the consideration that immediately spring to mind, which you will want to explore.

Life Planning, Tax PlanningJoshua Escalante Troesh, CFPSeptember 11, 2019Starting Out, Building Wealth, Young Families, 401(k), Financial Foundation, Divorce, Estate Planning

As a college student, should I continue investing or save to pay off my debt first?

The good news is you are choosing between two good options, so you really can't go wrong with either decision. If your student loans are subsidized loans, then the U.S. Government is paying the interest for you, so there is no reason to pay anything on the loans until you graduate. If they are not subsidized loans, then you may want to consider paying just the interest on the loans and then contributing to (or even maxing out) your IRA. This will give you the best of both worlds: being able to invest in your IRA and . . . .

Life Planning, InvestingJoshua Escalante Troesh, CFPJuly 25, 2019Starting Out, Financial Foundation, Budgeting, Retirement Planning, Individual Retirement Account, 401(k), Emergency Fund, Debt Management, Debt payoff, Student Loans, Stafford Loan

As a college graduate with a new job, how should I structure what I do with my income?

As with many things in the financial world, the best answer is "a little of everything." You should get in the habit of investing in your retirement from day 1, even if it is a small amount. Those who put off contributing to their retirement for 'a little while' often find themselves 10 or even 20 years into their career with no retirement savings. To catch up they need to contribute huge portions of their income to retirement accounts. Here is my recommendation for what to focus on:

Life Planning, InvestingJoshua Escalante Troesh, CFPJuly 4, 2019Starting Out, Financial Foundation, Budgeting, Retirement Planning, Individual Retirement Account, 401(k), Emergency Fund, Debt Management, Debt payoff, Student Loans, Stafford Loan

Should I use my 401(k) for a down-payment?

While most people argue against the use of an IRA for purchasing a home, I think it can be a good use of the funds if the situation is right. The fact you are currently contributing to a retirement plan is one of the factors I would want to see, although I'd like to be able to calculate what your current course to retirement would look like. If you are on track with your retirement without the $14,000 then using it for a house would likely be . . . .

Life Planning, Retirement PlanningJoshua Escalante Troesh, CFPJune 7, 2019Starting Out, Building Wealth, Buying A Home, 401(k), Individual Retirement Account, Retirement Planning

If a couple in their mid-50s is unemployed, can they set up an IRA withdrawal using rule 72(t), claim it as income and then re-invest it into a Roth IRA?

Good news, there is a way to accomplish your goal. Sort of bad news, using rule 72(t) won't help and yes, withdrawals from an IRA will impact ACA tax credit eligibility. Although the strategy you've outlined won't work, you can accomplish the same goal through converting a portion of the traditional IRA to a ROTH IRA. This is done by rolling over . . . .

Retirement PlanningJoshua Escalante Troesh, CFPMay 30, 2019Retirement & Legacy, Retirement Planning, Individual Retirement Account, 401(k), 457(a), 403(b), 401(a), ROTH 401(k), Roth IRA, Investment portfolio, Whole Life Insurance, Annuities, Annuity, Financial Advice, Affording College

How should my wife and I begin saving for retirement at 51 years old?

Congratulations on getting your son through college and on moving forward toward your retirement. You definitely need to hit the gas on your retirement savings and it seems like you are well poised to do this. Fortunately, the money which was dedicated toward your son's college can now be focused on your retirement.

At this stage you will want to invest . . . .

Retirement PlanningJoshua Escalante Troesh, CFPMay 27, 2019Retirement & Legacy, Retirement Planning, Individual Retirement Account, 401(k), 457(a), 403(b), 401(a), ROTH 401(k), Roth IRA, Investment portfolio, Whole Life Insurance, Annuities, Annuity, Financial Advice, Affording CollegeComment

Should I match my employer contribution to my retirement account or invest elsewhere?

You are correct, the rule of thumb advice doesn't really apply to you. If it is better you don't invest in the 401(k), the alternative to look at would be opening your own Individual Retirement Arrangement (IRA) account. To determine whether to invest in your 401(k) or to invest in your own IRA, ask yourself the following questions. . . .

Retirement PlanningJoshua Escalante Troesh, CFPMay 18, 2019401(k), Individual Retirement Account, Roth IRA, Roth Conversion, ROTH 401(k), Retirement Planning, Building Wealth, Fiduciary, Fee-Only

Should I leave my 401(k) with my old employer, roll it over to a plan my new employer offers, or do something else entirely?

You have three choices for the funds in your old 401(k) plan. The two you mentioned (leaving it where it is or rolling it over to your new employer) and rolling it over to an IRA. The best option for you would depend on several . . . .

Retirement Planning, InvestingJoshua Escalante Troesh, CFPApril 18, 2019Retirement & Legacy, Retirement Planning, Individual Retirement Account, 401(k), 457(a), 403(b), Liability Protection, Building Wealth, Managing WealthComment

How to Invest Unneeded Social Security Benefits

Happy to be quoted in U.S. News & World Report and be able to help investors understand the benefits and risks of investing Social Security proceeds.

InvestingJoshua Escalante Troesh, CFPMarch 19, 2019Quoted, Retirement & Legacy, Retirement Planning, Individual Retirement Account, 401(k), Social Security

Should I roll my traditional IRA into my new 401(k) account?

The first place to look is at the new 401(k) plan's investment options and fees. It is quite common for 401(k) plans to have very limited investment options and very high fees. It is still worthwhile to invest in them to get the . . . .

Retirement PlanningJoshua Escalante Troesh, CFPFebruary 28, 2019Starting Out, Choosing an adviser, Managing Wealth, Individual Retirement Account, Retirement Planning, 401(k)

Should I reduce my 401(k) contributions to save money for a down payment?

I think either of the two options would work well, since you would still be contributing at least 10% to your retirement account (you can count your contribution and your employer's contribution for this benchmark). At your . . . .