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)

What should I do with my annuity in its second year if the cap and spread values have been lowered?

I am sad you have to deal with this and it’s unfortunately not uncommon for annuity sales representatives to misrepresent the annuity. As for what to do next, you should determine if it would be better to continue the annuity or give up the money you have already put into it and instead invest using a different strategy. Even though the annuity is a bad investment…

Retirement Planning, InvestingJoshua Escalante Troesh, CFPJuly 1, 2022Retirement & Legacy, Retirement Planning, Annuities, Annuity, Individual Retirement Account

Purposeful Budgeting | A budget that integrates finances with your desired life

Budgeting shouldn’t be a limiting exercise designed to tell you how to spend your money. At its best budgeting is a tool for organizing your financial resources toward your great life, both now and in the future.

Also Covered:

A Better Version of Budgeting
Opportunity Cost
Changing Costs
Changing Priorities

Life PlanningJoshua Escalante Troesh, CFPJanuary 12, 2021Retirement & Legacy, Retirement Planning, Budgeting, Building Wealth, Financial Foundation, Financial Advice, Starting Out

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.

ALSO COVERED:

What Happens to Taxes.
Doing a 401(k) or IRA Rollover On Your Own.
Fixing an Indirect Rollover.
Making Up The Lost Retirement Account Balance.
Managing Taxable Investments vs. Retirement Investments.

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

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

What Do I Do with the Recent Stock Market Crash?

The last couple weeks saw a stock market drop which has many spooked. Here are the 6 things you should do to keep the market downturn from ruining your financial plan.

Investing, Retirement PlanningJoshua Escalante Troesh, CFPMarch 12, 2020Building Wealth, Managing Wealth, Retirement & Legacy, Retirement Planning, Young Families, Starting Out, Financial Foundation, Stock Market Crash, Bear Market, Stock Market Correction, Investment portfolio

Is my AAA financial advisor's advice to invest in an annuity a good idea?

Investing, Retirement PlanningJoshua Escalante Troesh, CFPJanuary 1, 2020Annuity, Annuities, Managing Wealth, Building Wealth, Retirement Planning, Retirement & Legacy, Stock, Financial Advice, Financial Planner Comment

What are the differences between a revocable trust and an irrevocable trust?

Estate PlanningJoshua Escalante Troesh, CFPDecember 11, 2019Trust, Revocable Trust, Irrevocable Trust, Retirement & Legacy

Do I have to buy treasury notes through a bank or brokerage firm?

There are three ways to purchase Treasury notes directly; through a brokerage, through a bank, or directly from the U.S. Treasury. While they are considered free from default risk, Treasury Notes carry significant other risks including interest rate risk and inflation risk. This is especially true with today’s . . . .

InvestingJoshua Escalante Troesh, CFPAugust 28, 2019Inflation Risk, Interest Rate Risk, Treasury Bond Fund, Treasury Notes, Managing Wealth, Retirement & Legacy

Which is the best strategy to pay off our debt?

My answer: neither is the optimal strategy – but that the home loan is a less-bad strategy. Your financial planner is correct about it being worse to use your IRA money to pay the loans. When you take money out of the IRA you will have to pay the 10% penalty plus income taxes, which should be 22% based on your income. This means to pay off the $50,000 debt you would need to take out . . . .

Retirement Planning, Debt ManagementJoshua Escalante Troesh, CFPJuly 18, 2019Financial Foundation, Starting Out, Building Wealth, Managing Wealth, Retirement & Legacy, Retirement Planning, Financial Advice, Financial Planner, Credit Card Debt, HELOC, Individual Retirement Account

Should we pay off our mortgage when on fixed income pensions?

I generally don't advise clients to aggressively pay down their mortgage unless they have so much money in retirement assets and income that the mortgage money won't make a difference to them. Unlike what many might suggest, your mortgage does not present a risk to you and your wife during retirement. So long as you can afford to pay your monthly payment and . . . .

Retirement Planning, Life PlanningJoshua Escalante Troesh, CFPJune 13, 2019Retirement & Legacy, Retirement Planning, Individual Retirement Account, Thrift Savings Plan (TSP), 30-year mortgage, Debt payoff, Investment portfolio, Roth IRA, Roth Conversion, Tax 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 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 do I find the right financial advisor for me?

Finding the right adviser is difficult but not impossible. You will want to research advisers and then set up appointments with at least three or four of them. An adviser should be a fiduciary, should not be a commissioned. . . .

Life Planning, Investing, Retirement Planning, Tax Planning, Insurance Planning, Estate Planning, Debt ManagementJoshua Escalante Troesh, CFPApril 4, 2019Financial Foundation, Starting Out, Building Wealth, Managing Wealth, Retirement & Legacy, Retirement Planning, Financial Advice, Fiduciary, Fee-Only, Financial Planner

How to Choose Between Weighted Funds

Somehow missed this when it came out, but happy to be quoted in U.S. News & World Report and be able to help investors understand the uses of cap-weighted and equal-weighted funds.

InvestingJoshua Escalante Troesh, CFPApril 2, 2019Quoted, Retirement & Legacy, Retirement Planning, Mutual Funds, Exchange Traded Funds, Building Wealth, Managing Wealth

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

With only $192,000 saved, should I retire or not?

Ultimately this is a math question: is your savings large enough to provide you with sufficient income if you retired today. With $192,000 saved, a skilled adviser could provide you with a monthly income of between $500 to $750. (Some advisers may . . . .

Retirement PlanningJoshua Escalante Troesh, CFPFebruary 21, 2019Retirement & Legacy, Retirement Planning, Savings

What should I do with my annuity in its second year if the cap and spread values have been lowered?

I am sad you are having to deal with this. The annuity representative should have explained this to you and made sure you understood what you were buying. The contract/prospectus for annuities are very long and very . . . .

Retirement Planning, InvestingJoshua Escalante Troesh, CFPFebruary 14, 2019Retirement & Legacy, Retirement Planning, Annuities, Annuity, Individual Retirement Account

Is a cash value life insurance policy a good idea for me in retirement?

When I see advice like this my 'Spidey sense' starts to tingle and I worry the other advisor might be motivated to sell a product rather than give you good advice. If you have a need for life insurance during retirement, this . . . .

Retirement Planning, Insurance PlanningJoshua Escalante Troesh, CFPJanuary 17, 2019Retirement & Legacy, Retirement Planning, Whole Life Insurance, Term Life Insurance, Asset Allocation