ABOUT HOSTS

Joe Anderson
ABOUT Joseph

As President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the firm opening. When Joe began working with Pure Financial in 2008, they had almost no clients, negative revenue and no [...]

Alan Clopine
ABOUT Alan

Alan Clopine is the CEO & CFO of Pure Financial Advisors. As CEO he currently leads Pure Financial Advisors along with our executive team. As CFO he is responsible for the financial operations of the company. Alan joined the firm about one year after it was established. At that time the company had less than [...]

Published On
June 11, 2016

Hosts answer questions on investing for retirement and share strategies for managing your portfolio during an election year.

6:32 “When you inherit a retirement account, it blows up on the heirs because it’s [taxed at] ordinary income for the heirs”

8:20 “With this Bipartisan Policy Center, one of the things they want to do is get rid of the stretch IRA because it’s really a pretty good deal”

12:20 “Can an SEC licensed broker-dealer transfer your 401(k) account into an IRA without your permission?”

13:38 “Your retirement accounts are separate properties…there’s no such thing as a joint retirement account”

18:54 “I am 47 years old. I have around $100K in a Traditional IRA. I haven’t contributed anything in that account for a long time now. My current job offers a 457 and 401a plan, which I try to contribute to every paycheck. Should I transfer my Traditional IRA funds to my job’s 401a or 457 account? What are the tax consequences of that transfer? Should I just keep my Traditional IRA and use it until I retire? If I transfer that money to the 457 or 401a account, should I do it in a one time transfer or installment transfers (in 5 or so years for less of a tax penalty)?

19:57 “There’s no reason to roll the IRA in the plan. I will give you an advantage.. but let’s say you decide to keep it separate – there are advantages to that but probably the main one is you have more investment choices when it’s in an IRA”

21:44 “One benefit of the 457 plan is that you can take that money out at any age”

23:47 “I have read about the presidential election cycle and am curious as to what actions I should be taking in terms of my asset allocation. When should I take those actions? How conservative would you recommend I become prior to the election? What are the most effective portfolio management strategies you would recommend in order to maintain or at least mitigate risk?

I am a small time investor. I work with a small amount in an online brokerage account as well as accounts with companies such as Acorns and Betterment. I do not have the ease and benefit of diversifying risk away (referring to the Modern Portfolio Theory)”

25:22 “Here’s my answer: there’s no evidence that there’s any sort of market swing one way or another with a presidential election. It can happen and it may happen but there’s no reason to make any drastic changes in your portfolio just because of that”

29:42 “My wife and I are 83 years old. We will sell our home for about $400,000. Will we pay capital gains tax when moving to an apartment for $2,500/month?”

31:56 “It’s June and I have not taken my RMD (required minimum distribution). Should I let the funds grow until end of the year or take average withdrawals until end of the year?”

33:34 “I am 69 years old. My husband is 71 years old. We cannot afford the note on our home with our retirement income. We have two annuities. One for $300,000 and one for $600,000. Both are about 3-6 years old. I want to know if I cash in the $300,000 annuity, what kind of penalties and taxes will I have to pay?”

34:00 “The first question you should ask yourself is: is the annuity in a retirement account or not? If not, every dollar you pull out is fully taxable”