Related Posts
Anyone got a good tax person in the bay area?
Community Builder
More Posts
Community Builder
Hi everyone! I'm looking to apply for a Strategy and Operations Role at Google . They are asking for 3 years of work ex but I only have slightly more than 2 years of work ex in Operations. Would it make sense to still try for it if I only meet the Operations side of requirements and not strategy side?
Additional Posts in Financial Advisors
Anyone in the Houston area?
Mentor
So the fiduciary rule got tossed yesterday
Best music/audio to listen to while working?
My Week in Emoji: ⏰☎️🧹🚽☕️📥🧾💤 Hbu?
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Roth and life insurance.
Are you an RIA? Put him in a few dividend producing SMA’s - better dividends and the ability to be more tax-efficient then a mutual fund. VUL (sure) if he/she want more market participation), but also look at non-direct recognition and dividend participating (has to be both) custom whole life policies (can get the money out of the tax system, growth at roughly 5% tax free IRR Year/year (at his/her tax bracket, the Tax Equivalent Yield makes this comparable to a 6/7% pre tax gain, but without the market or interest rate risk) and if you pull the CV out, client still gets the div’s as if the entire sum of CV were still in the account). 529’s (depending on the state) may or may not be efficient through Vanguard. A couple of other options out there, but this gives you enough to go on.
It depends on the goals, attitude, and tolerances. I have a similar situation where I took over a buddy's stuff because he was tired of DIY.
Couldn't do back door ROTH as his IRA is too big, and he had no interest in it for some reason.
Offered NQ in munis and such but he wants to chase returns. He said 40% of a bigger return is better than less on a smaller return...
Offered ETFs, but he didn't want the eventual tax bomb (as opposed to traditional IRA?) and prefers small taxes on dividends and cap gains from MFs.
I offered an index portfolio to keep expenses down but he wants to try to beat the indexes.
I did a fee based joint account with my favorite funds. We're beating the S&P and he's very happy.
So I’m going to re frame the question; I have a friend who is doing a good job so I’m afraid I can’t show him value in what I do. You can find value my friend. It as about strategy and allocation and answering the why. Get his money and advise on the whole picture even if it is only a brokerage account. The fact he is a friend is the hard part.
If it were your money, what would you do? Tell him with conviction. If it isn’t what he wants then tell him you are probably not a good fit for him.
Personally, I’d do back door roth and NQ in a portfolio that matched his risk tolerance. If he didn’t like it, I’d tell him that’s okay - but he needs to find an advisor that will do whatever he wants just to make money off him. The conviction and integrity will strengthen your friendship and your business.
Does his spouse work? Spousal IRA, NQ, etc. Depending on where you are located and his taxable income, munis may or may not be attractive. With that level of income, he may be eligible to access some accredited investor investments; REITs, etc.
Need more info...
Sounds like a solid financial planning client. Let the plan dictate where you two go...
What I would do after his buy in to want to invest:
See if there are in service withdrawals or self directed option in the 401k.
Back door Roth
NQ account
Fee Based VUL contract and charge an AUM fee on it.
It’s all based around what he wants of course, so follow the bouncing ball.
I’m in agreement with the back door roth and the nq account. My issue is there isn’t much to do now except build out those two accounts. He has a solid education funding plan going on, so I can’t in good conscience change that in order to generate revenue. I know I can add great value with a plan, but my payoff will be much longer term via building new accounts or waiting for a rollover.
Backdoor Roth for he and spouse. Life insurance on the family, disability insurance, possibly ltc.