AboutAaron Hall Expertise I can answer questions regarding asset allocation, investment selection, investment managers, hedge funds, investment expenses, most common tax shelters, retirement accounts.
Experience I have worked with MetLife Financial Services, Ameriprise Financial, and Merrill Lynch. I also manage millions in client assets, though I am not actively searching for more clients, and I do not accept commisions for financial products.
Organizations Financial Management Association
Education/Credentials I am in the process of attaining my Ph.D. in Finance with a support area of econometrics, and have a bachelors degree in Finance with a concentration in Real Estate from Florida State University.
Education
Florida State University, Tallahassee, FL
Ph.D. in Finance, pending
Florida State University, Tallahassee, FL
B.S. in Real Estate and Political Science, Spring 2002
Related Industry Experience
Merrill Lynch, Financial Advisor with Merrill Lynch, with $3,000,000 in assets on the books, $2,000,000 of which was fee based, where clients followed specific portfolio recommendations based on optimized portfolios tailored to risk tolerance and goals, 2006-2007
Independent, Financial Planner, continuing to work with select clients, 2005-2006
MetLife, Financial Services Representative, Selling Life Insurance and Annuities, 2003
Guernsey and Associates, Boutique Financial Planning Firm Internship, Selling Life Insurance and Fee-based Financial Plans, Fall 2002
Honors and Awards
College of Business Ph.D. Fellowship/Assistantship
College Teaching Fellowship Award
Full Undergraduate Academic Scholarship at FSU
National Merit Scholar Award
I have a series of questions; I would be grateful if you could help. Here is our background. My husband and I are both doctors (meaning we know nothing about retirement planning.) My husband is 39 and I am 37. Our take home pay is approximately 30k per month. The 30k is after my husband contributes the maximum to his 401k. Out of our take home pay, we contribute the maximum to both of our traditional IRA's. (I no longer have a 401k or Keogh.) We save approximately 17k to 20k per month; we have about 600k in a savings account and money market account. We have paid off in full our 250k student loan debt and now only have our mortgage debt at 130k. We do itemize our taxes. We have about 350k in previous 401ks and a Keogh account.
1. I have $6500 in a 401A plan with my former hospital. This week, I would like to roll over this account into my traditional IRA which has 16k. Next year, will I be able to roll over this entire amount, including the original amount from the 401A, into a Roth IRA?
2. Does it make sense for my husband and me to rollover our traditional IRA's into Roth IRA's next year. We each have about 16k in our accounts, both of which have LOST money/value from the principal we have contributed.
3. We are getting massacred in taxes. My husband is leery of investing further into the stock market. However, I am frustrated that our 600k in savings is only earning 1.35%. What are your thoughts on annuities? (you know Suze Orman hates them.) But, are there other tax shelters we can place this money? We live in a small house, drive really old cars, and keep our expenses down. We are expecting twins Feb 2010, which is going to change our finances. We do not intend to use our savings; although, other parents are saying we will change our minds and probably move to a bigger house once the twins are born. We do not need to use this money other than that probability.
Thank you for any help.
Answer Helen:
1. Yes, and you will pay ordinary income taxes on the money being rolled over, which only makes sense if you pay the taxes with money not in the tax-sheltered accounts.
2. Yes, and so long as you pay your taxes with other non-tax-shelter monies, you have reduced your taxes.
3. Taxes and risk management are two separate issues. If you want guarantees: to avoid taxes, probably a good idea for your tax bracket, you should use annuities or municipal bond funds. Individual municipal bonds are a risky proposition, but a fund diversifies the risk that the individual bonds will fail. If you want a fixed annuity, shop around for the best current rates, or consider an indexed annuity, which grants some stock market participation with guarantees not to lose money.
If you are willing to risk your money in the stock market, variable annuities are the way to go. You can find no-load variable annuities through Fidelity ( http://personal.fidelity.com/global/search/inquira/resultsindex.shtml?question=a... ), though if you want more guarantees than Fidelity gives, talk to several local financial advisors that come highly recommended. Remember that the tax-sheltering that annuities give is sometimes less advantageous (growth will eventually be taxed at normal income rates) than deferring capital gains and receiving qualified dividends (through buying a portfolio of individual stocks or exchange traded funds). If your time horizon is long (say 20 plus years), the sheltering effect is superior.
