Financial Advisors
I have viewed Ed Slott on our local DFW PBS television station multiple times. I have purchased one of his books and read others. I must say I am impressed with his knowledge regarding IRAs.
I have a 401K and now that I am retired it needs to be moved into an IRA. My wife, who died on October 25, 2011 also had a 401K with the same company and I am the primary beneficary. I am interested in setting up a “stretch” IRA with these accounts and making my three daughters equal beneficaries. I began a search for a financial advisor who was familar with the stretch IRA. Thus far my search has been very disappointing. This would include one local firm from the irahelp website. I have endured the most heavy-handed sales pitches. Everyone wants to sell my stocks and bonds amassed over the last 20 years and move my money into their financial instruments and then manage them including selling me an annuity that I do not want.
My question: Are there not others like Ed Slott who do not sell but provide a basic service like setting up my IRA and taking advantage of the stretch option?
I am not cheap and am perfectly willing to pay an hourly fee for this service.
Thanks,
JW
Permalink Submitted by Alan Spross on Thu, 2011-12-01 23:26
First, sorry to hear of your loss.
Both of these accounts are now your money to manage as you wish. If you live in a smaller area and want to keep your dealings local, you might ask some acquintances for references to local firms. Conversely, if you do want basic help with the rollovers, you can get that from large national firms like Schwab, Fidelity or Vanguard at no cost, and also optional investment help if you want it.
A stretch IRA only means that you restrict your distributions to the minimum you need and of course satisfy your RMD amount starting at 70.5, and also name individual beneficiaries such as your daughters. There is no formal type of IRA known as a stretch IRA, as stretching the IRA is only a strategy that you employ. Any rollover IRA you create from the 401k plans can be used to stretch the balance for as long as possible by limiting distributions as noted above. I agree that this is probably not the time to make an irrevocable decision on an annuity.
Can provide additional advice on the rollover process and possible RMDs. Would need the ages both you and your wife would have attained at the end of this year. In addition, if either of these 401k plans contains highly appreciated employer stock shares, you have the potential to consider NUA (net unrealizied appreciation) to pay the lower LT cap gain rates on the gains. This is a way to avoid the higher ordinary income tax rates on all other 401k or IRA distributions. Also, does either plan include after tax contributions?
Permalink Submitted by Peter Lingane on Thu, 2011-12-01 23:51
My condolences on the loss of your wife.
Since you appear to understand the principles of both IRAs and of investing, why do you a need an adviser? You could contact one of the major discount brokerage firms, open a traditional IRA with your daughters as beneficiaries and ask the firm to transfer both 401k accounts into the IRA. They may suggest that you sign up for their mutual funds or for a managed account but they should back off if you decline.
If you would prefer assistance, I suggest a fee only planner with the CFP(r) designation. There are “planner search” capabilities at both the CFP and FPA (Financial Planning Association) websites. Investment advisers tend to charge an annual retainer based on the value of your assets but some planners are willing to accept an hourly rate. You could avoid product pitches by choosing a planner who is not licensed to sell securities or insurance. Most planners must be registered with the state or SEC. You can access information about individual planners at the SEC website..
Since you have recently lost your wife and have retired, it might be prudent to ask a planner to comprehensively review your financial situation, including your estate plan and provision for long term care. If the chemistry is good, you could follow up by asking for a portfolio review. Who knows, he or she might even be able to suggest improvements!
Permalink Submitted by Bruce Steiner on Fri, 2011-12-02 03:20
Lawyers generally work on a time basis, and don’t sell anything. You might start with the lawyer handling your wife’s estate. He/she should be familiar with the IRA issues.
Permalink Submitted by david flex on Thu, 2012-05-03 08:29
I am really sorry to hear about the loss of your loved wife. I know how difficult this must be for you. You are in my thoughts and prayers. May God bless you and your family during this time and always. I would recommend you to go with right financial advisor. He will directly impacts the quality of life you will be capable of sustaining throughout your lifetime. Financial advisor will ask for all relevant financial information from you to assess your current financial situation, he will help you execute the plan once in the initial phases and advise you on how to stick to the plan based upon the goals you have identified.
Permalink Submitted by Micheal hassy on Wed, 2012-08-01 09:52
Yes there are some financial advisor available, take help of them and short out your problem.
check this signature link also.
Permalink Submitted by Jeffrey Moss on Wed, 2012-08-01 11:59
If you are looking for advice on an hourly basis, you might take a look and see if there is an advisor affiliated with the Garrett Planning Network in your area. I have no connection to this group whatsoever.
Also, as Alan pointed out above, the large discount brokers can help in getting the accounts moved around properly. You sound as if you are willing to do some research on your own, and this site can be a great resource for you.
A quick word of advice is to beware of any advisor who talks about specific products at your first meeting. This meeting should be for the purpose of determining whether the two of you are a good fit to work together.
Permalink Submitted by Scott Olson on Fri, 2013-11-08 23:01
Sorry to offend anyone, manyone’s but there are so many better ways to pass IRA’s to families than a stretch. In 35 years as an advisor I have never had a single benie that didn’t the bootie all up-front, and all a stretch does is keep the kids from benefiting and actuallly pays the IRS far more money that using methods like a Fair Market Valuation (with the right assets), Oil & Gas Drilling Programs, the Ideal Plan, or CRUTs to elinate income tax on the conversion.
Permalink Submitted by April Townsend on Sat, 2013-11-09 14:51
My mother has recently passed away and has left me a nice sum of money {over $100,000). I’d like to be able to invest it wisely so it will be available to me when I’m ready to retire, I am currently mid-forties and would like to retire when I turn 62. I noticed that you have a financial advisor link and there are some people listed not too far from me in Raleigh,NC. Was not sure if they or some other financial investment company, such as Schwab/Vanguard/etc, would be the best choice for me. I’m not investment saavy and the market scares me. Whom do you recommend for investment advice?