Author Archives: Nancy Hecht

You have questions! I have answers!

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Q:  At age 70 1/2 do I have to withdraw funds monthly from my retirement account?

A: The April 1st after age 70 1/2 is when withdrawals must start.  The mandatory distribution is an annual amount that needs to be withdrawn in any method you feel comfortable with: monthly, quarterly, semi-annual or annual.

Q: I have an unemployed Niece, can I make an IRA contribution for her?

A: The only way to make an IRA contribution for someone who is unemployed is to do it for a spouse.

Q: I am 73, living in Florida.  Is having a will enough to avoid probate?

A:  Just the opposite is true.  A will invites probate, which is the proof that a will is valid and that its terms are being carried out.

 

My Hairdresser knows…

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I have had gray hair since I was 16. By the age of 22 I had an evenly balanced head of salt & pepper hair. At the age of 30, completely gray, I started coloring my hair. What does all of this have to do with Financial Planning and Money Management… my hairdresser can tell when the markets have been wacky because I need to get my roots colored a lot more frequently.

A big part of what I do is meeting regularly with my clients. There is nothing better than a face-to-face meeting for review & updates. I like to keep up with the changes and events in my clients’ lives and keep them up to date with the market fluctuations and any impact that may have on their plans. Some impacts are not so great, some are beneficial. Since 2008 the fluctuations in the markets have given us a lot to talk about. This is why the roots need more attention.

I worry for my clients. They know that I am watching the different sectors that may affect their investments and will contact when something needs to be done. I enjoy and embrace this responsibility. Any Planner can talk to their clients in good times I will be the one that is calling my clients and holding their hands during the not-so-good times. Contact with my clients, whether via letter, email, or face to face is what sets me apart from other planners. So I will spend more time getting my hair done- it is a small price to pay

Questions I have been asked that you may also have.

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Q: I have a poorly performing pension plan that my employer will allow us to move. How do I do that?
A: You can do a trustee to trustee transfer to a self-directed IRA.

Q: What happens if I die without a will or trust?
A: This is called dying “intestate”. The state of Florida will divide your assets equally among your survivors.

Q: We only have $70k to invest, and I was wondering, is gold only for rich people?
A; No. There are a number of exchange-traded funds and other mutual funds that offer investments in gold for every size investor.

I Can’t look!

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Most of you have either recently received or are about to receive your Third Quarter statements from your various investment accounts. We all know that as far as the general markets are concerned – the third quarter was a bad one. Let’s look at the benchmarks:
Dow -12% S&P -14% Nasdaq -13%*

Those are some ugly numbers. But that is history, let’s look at now.
As of 10/21/11 all of the benchmarks were up 5% or better. That is a huge increase for a two week period of time and, certainly, there is no guarantee that will continue, however, let’s look at what opportunities you have had since 6/30/11:
Every two weeks when your 401k or other retirement account deposit hit your account you bought more shares than previously. Everything was on sale and that is a good thing. While you are accumulating funds for your retirement – you want things to be on sale. Over the third quarter, you were able to buy more shares that you could earlier in the year. More shares = potentially more income in retirement.

Keep in mind that we are long term investors – not short term traders. This third quarter opportunity to buy on sale was a gift.

*Yahoo Finance

Take Care of Your Mother!

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I recently met with an 80 year old Woman that I hope to be like when I reach that age. She is so sharp, active, and involved. She asked me to review her investments and let her know what I think. She does not have any concerns regarding income or doing what she pleases. She does not have any debt. She has a number of CD’s that mature at different times, all with very low interest rates. Some of her accounts are IRA’s, some are not. Every time a Cd matures, she goes into her Credit Union to renew, which is fine. But here is what has happened in the past:
When she was 75, an IRA CD matured and she was convinced to transfer the funds to an Index annuity with a 10 yr. surrender charge! Again, at age 80 she was sold another annuity, this one with a 12 yr. surrender charge! I have nothing against annuities; however, 10 and 12 yr. surrender charges are horrible. In my opinion these transactions benefited the representative and not this woman.
She is widowed and her children do not live in the area; they do visit frequently. I know a lot of her generation does not like to share their financial information, but please, for the sake of your Mothers, start the conversation.