Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Met with a FInancial Planner the other day.
Old 01-06-2008, 06:35 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Met with a FInancial Planner the other day.

DW has access to one from the company that manages her companies 401k, PST,ESOP, etc. (it was free, no charge. We can use him again if we feel the need.)

It was helpful mainly for some tax advice. He saw the portfolio allocation for our assets. He had no problems with it. He made a few insightful suggestions. The only thing he was less enthusiastic about was indexing... naturally he was an active fund proponent.

It was good to get some reflection on the basic plan... and great to have a little independent confirmation about my approach.

In the end... he was espousing the same general stuff anyone would read in a general investment/retirement planning book. Except for a few tax related thoughts (which I already about).
__________________

__________________
chinaco is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-06-2008, 06:44 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,627
OK, you teased us with a mention of 'insightful suggestions' and 'tax advice'. What were they? Could we benefit from them?
__________________

__________________
LOL! is offline   Reply With Quote
Old 01-06-2008, 07:11 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
The suggestions were very specific to our situation. DW has some company equity that can utilize the NUA provision. I was aware of it, but did not know much about details. He was familiar with the details. It is not something that many people would be aware existed. Plus, if you qualify and do it... it would likely be a one-time event. So the details and variations on issues are likely to only be know by planners that run into it a lot or accountants that are tax specialist.


FPA Journal - Contribution: Revisiting Net Unrealized Appreciation: A Tax-Wise Strategy That May Realize More Benefits Than Ever
__________________
chinaco is offline   Reply With Quote
Old 01-06-2008, 09:21 AM   #4
Dryer sheet aficionado
 
Join Date: Jul 2005
Posts: 36
I'm curious what perspective you may have gotten on the trade-off between holding for NUA tax benefit and the risk of investing in an undiversified position in your employer's stock.

Was there any comment in particular?

It is to be noted that 401K plans have recently been required to allow employees much more latitude to diversify out of company contributions in stock to 401K's since Enron.
__________________
dbr is offline   Reply With Quote
Old 01-06-2008, 01:08 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,884
Quote:
It was good to get some reflection on the basic plan... and great to have a little independent confirmation about my approach.
This is the main thing that I place a value on when I use the CFP @ Vanguard to review my plan. It is always good to get a second party to peek at your plan (ideas) in order to possibly expose a potential problem. Even a criticism of my plan is appreciated, though I will probably not act on it.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 01-06-2008, 01:09 PM   #6
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 2,677
Quote:
Originally Posted by chinaco View Post
DW has some company equity that can utilize the NUA provision.
If you're retiring early, you'll need to leave your 401-K where it is (ie. not roll it over into an IRA) to get the benefit of the NUA. I sincerely hope that my understanding of the above is correct - because I acted on it.

In my case, I decided to liquidate my company stock even though I knew about NUA (brought to my attention by the Vanguard Financial Consultant), because it will be some 11 years before I can move the company stock using the NUA provision, and I thought the risk/return of a single stock holding for that period of time was not worth the tax savings.
__________________
walkinwood is offline   Reply With Quote
Old 01-06-2008, 04:07 PM   #7
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Quote:
Originally Posted by walkinwood View Post
If you're retiring early, you'll need to leave your 401-K where it is (ie. not roll it over into an IRA) to get the benefit of the NUA. I sincerely hope that my understanding of the above is correct - because I acted on it.

In my case, I decided to liquidate my company stock even though I knew about NUA (brought to my attention by the Vanguard Financial Consultant), because it will be some 11 years before I can move the company stock using the NUA provision, and I thought the risk/return of a single stock holding for that period of time was not worth the tax savings.
I liquidated all my company stocks from the 401K plan and rolled the proceeds to an IRA a year ago when I left the company. It was a good move since the value of the stock has since declined over 60%. I do not see the big advantage of holding on to a stock just for tax savings which may not be any better than paying taxes for the gain as ordinary income as opposed to long-term capital gain.
__________________
Spanky is offline   Reply With Quote
Old 01-06-2008, 04:44 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Quote:
Originally Posted by walkinwood View Post
If you're retiring early, you'll need to leave your 401-K where it is (ie. not roll it over into an IRA) to get the benefit of the NUA. I sincerely hope that my understanding of the above is correct - because I acted on it.
I understand the rules. We are studying the options and the implications.
__________________

__________________
chinaco is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Let's make believe you did have a Financial Planner retire@40 FIRE and Money 42 03-31-2011 12:24 AM
Meeting with a financial planner Ronstar FIRE and Money 15 10-19-2007 12:41 PM
Need to fire financial planner Jeff55 FIRE and Money 16 09-15-2005 04:50 PM
J&L Financial Planner mark FIRE and Money 3 03-29-2005 02:01 PM
Value of a financial planner Lance Covington FIRE and Money 19 01-14-2005 04:27 PM

 

 
All times are GMT -6. The time now is 04:53 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.