Should I use money from my 403(b) account to pay off my credit card debt?

While the credit card company charging 16% interest is annoying, taking money from your 403(b) or any other retirement account to get rid of the debt may negatively impact you financially. Even though you can take the money out without the 10% penalty, you would still have to pay taxes on the money. You would likely lose money on the deal based on how the math works.

Retirement Planning, Debt ManagementJoshua Escalante Troesh, CFPAugust 21, 2019Credit Card Debt, 403(b), 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

As a young professional in my late 20s, what else should I be doing to make the most of my money and save for retirement?

You seem to be doing well with your overall financial plan. So, while the financial world is confusing, you seem to be doing a good job of conquering it. The next step would be to look at your other goals and begin to prioritize . . . .

Life PlanningJoshua Escalante Troesh, CFPApril 27, 2019Starting Out, Building Wealth, Retirement Planning, 403(b), Individual Retirement Account

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

Should we invest in stocks or pay off student loans with money gifted to us from our wedding?

I encourage the two of you not to consider this as an either/or situation, but instead use the money to provide for multiple goals. Focus on multiple goals to help you achieve both financial stability and a happier life . . . .

Retirement Planning, Debt ManagementJoshua Escalante Troesh, CFPMarch 21, 2019403(b), Pension, Starting Out, Marriage, Financial Foundation, Building Wealth, Student Loans, Retirement Planning, Emergency Fund

Which retirement plan should I choose- 403(b), 457(b), or 401(a)?

While there are some key differences between the plans, it is the underlying investment options and fees which should really drive this decision. Each of the plans will have predominantly the same …

Investing, Retirement PlanningJoshua Escalante Troesh, CFPAugust 23, 2018403(b), 457(a), 401(a), Roth IRA