Jill Slazenger, Geelong discussed on Jill on the Money


Geelong money where Jill Slazenger takes the mystery out of your finances eleven market makes a mistake because it's so rare that he does so I just want to have a moment here to enjoy it I usually make all the mistakes in this do well feels good mark great okay thanks your back it's Jill on money and if you've got a financial question we'd love to hear from you so I had a mark when you send that email he's the one who kind of monitors the in box and make sure that we get to everything say hi Hey marcado mark when he actually gonna get married as that question so I can stop asking it everyone when you send your next email sent at ask Jill Jill on money dot com start with dear Jill and mark Hey mark when he finally getting married let's start with that all right like don't blame it on that mark okay all right but well let's get a date on the box I'm gonna be your flower girl okay I'm just trying to follow up question to our episode about facet wealth if you guys did not hear that episode you can go back to Jill on money dot com and just you can go through the archive there but essentially facet wealth is one of these new companies it's sort of a hybrid all right and so we had this guy brand twice on the show and he talked about and you know like what this company does which is instead of charging a percentage of assets that they manage the charge a fixed fee and it's like forty Bucks a month somewhere between five hundred dollars and five thousand dollars a year and so that it's kind of interesting it's a it's a really interesting model and tissues basically asks the question like Hey do you think this makes sense for us and says that they she has you know wants to know that I want to know about allocation and and sort of a big picture though is it worth it should that should do the monthly fee or could be resolved in a few hours so your alternative to fasted wealth would be to find somebody to just do an overall financial plan for you and have that person do it by the hour and the CM much it will cost and you can compare it I would suggest that you talk to some maybe a nap fall adviser and national association of personal financial advisors napa dot org that could be a good place to start I'm might make a lot of sense so check it out we can compare what the prices are all right Linda writes that she is currently maxing out her four oh one K. that she started in September of last year I hadn't and I'm confused about how to handle seven thousand dollar irate deposits my vanguard advisor group tell me to make bi monthly deposits in my existing rollover IRA their after tax because they don't qualify for any deduction the adviser said hello brother I just is a long story here okay I see the problem so anyway she was trying to do a I'm a back door Roth so you put money a backdoor Roth is you put money into a non deductible retirement account and then you quickly converted into a Roth IRA and then you have no problem with the income limits but the problem is that I'm the existing rollover IRA if someone told you to do that that probably was pre tax money and knives screw the whole thing up so what I think you need to do is number one remember that you cannot do a raw like a back door Roth if you've got this other money in an IRA rollover kind of messes up the whole thing and so you've got to be very careful if again this big the existing rollover IRA is the problem okay that messes up the calculation what you could do is take your existing rollover IRA and then you could roll that into your current four oh one K. put all that money together then you can make a nondeductible IRA contribution into a brand new account and then convert that into a Roth that's what I would do now the problem for you is that it seems like you've gotten a lot of questions and concerns I'm I think that what you really need to do is that that you need to make sure the money is separated you need to undo these transactions and the first thing that I would do is take the old roll over and put it in your current four oh one K. then the problem is going to cease to exist if you need help with this you might I mean you say of the CPA you need to be very clear maybe so maybe the other the financial advisor maybe didn't realize there's this other account but if you've got an existing IRA account or rollover IRA and it hasn't been taxed and you want to do a back door Roth it makes it very difficult to do the backdoor Roth because there's this weird calculation that messes up the whole benefit of doing a backdoor Roth for you got to do the whole thing and I bet you don't have enough money to pay the whole tax due on that anyway I am so sorry because it sounds like a little bit.

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