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  • #16




    The Roth is all “A” funds. That means you’re paying a load (commission) on every share you buy. You can move your account electronically to another custodian, like E*Trade; very simple to do, and you don’t have to argue with him any more. He has to know it’s coming, anyway…
    Click to expand...


    Is E-Trade our best option here? I have zero experience but am willing to pull the trigger ASAP.  Both my wife and I have a roth that we can roll over. Also, with respect to the variable life insurance with that cash value. Am I better off closing that out and reinvesting that cash into a backdoor roth? Help max out my 403b or start a 457 etc...Or should I leave it where it is since I have had it so long? Oh so many questions!

     

    Thanks so much!

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    • #17







      The Roth is all “A” funds. That means you’re paying a load (commission) on every share you buy. You can move your account electronically to another custodian, like E*Trade; very simple to do, and you don’t have to argue with him any more. He has to know it’s coming, anyway…
      Click to expand…


      Is E-Trade our best option here? I have zero experience but am willing to pull the trigger ASAP.  Both my wife and I have a roth that we can roll over. Also, with respect to the variable life insurance with that cash value. Am I better off closing that out and reinvesting that cash into a backdoor roth? Help max out my 403b or start a 457 etc…Or should I leave it where it is since I have had it so long? Oh so many questions!

       

      Thanks so much!
      Click to expand...


      I don't think there is a "best". We've custodied with ET before and I thought they were a good company with easy-to-follow reporting. Fidelity and TDA 2 others to look at. I'd just pull the trigger - you can always change later if you're not happy where you are.
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #18


        Also, with respect to the variable life insurance with that cash value. Am I better off closing that out and reinvesting that cash into a backdoor roth? Help max out my 403b or start a 457 etc…Or should I leave it where it is since I have had it so long? Oh so many questions!
        Click to expand...


        Sorry, overlooked the rest of your post. Do you have a CPA? You'll get all kinds of answers here, and they apply to many different situations. First find out the tax impact of cashing out. Naturally, I am in favor of doing so, but you don't want a nasty surprise. Then talk to your CPA or a fee-only CFP about what to do with the proceeds. The options you have mentioned are better than what the money is being used for now. btw, you can "reinvest" that cash into a backdoor Roth, but you can use $5,500 of the proceeds to fund one for 2017 all the way up to the full $22k to contribute for both you and your spouse for both 2017 and 2018.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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        • #19
          We don't have a CPA/CFP...I'll ad that to the ever growing list of things to do! So I just want to clarify what you are saying here. I can take the money from my whole life and use it for an IRA from 2017 and then do another for 2018? Then convert them into a roth? I am not up to speed yet on how that happens, I am on the insurance portion of the WCI, but is that the basic idea? Is there a time limit to get the 2017 IRA done? I imagine there is...

          Edit: And since there is a timeline here, what would be the quickest way to get my cash out of the policy? Just dial up NWM and tell them I am done?

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          • #20




            We don’t have a CPA/CFP…I’ll ad that to the ever growing list of things to do! So I just want to clarify what you are saying here. I can take the money from my whole life and use it for an IRA from 2017 and then do another for 2018? Then convert them into a roth? I am not up to speed yet on how that happens, I am on the insurance portion of the WCI, but is that the basic idea? Is there a time limit to get the 2017 IRA done? I imagine there is…

            Edit: And since there is a timeline here, what would be the quickest way to get my cash out of the policy? Just dial up NWM and tell them I am done?
            Click to expand...


            You can do anything you want with it - you'll just receive a check. If you'll owe taxes, they'll probably withhold from the check (I don't deal with this a lot so maybe an insurance agent could step in?)

            I expect you are going to have to have that awkward conversation with your NWM bestie or you can just email him and ask what paperwork you need to complete the transaction.

            Your 2017 nondeductible TIRA contribution is due no later than 4/17/18 but don't wait until that close. Before you convert to a Roth IRA, make sure you don't have any pre-tax IRA accounts hanging around. See Explaining Backdoor Roth IRAs and/or search this site.

             
            Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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            • #21
              If there is a gain on the life policy you will pay taxes on that but if there is more money paid in premiums to the company than Cash Value when you terminate the policy then there will not be any taxes.  Most of the time the insurance companies will ask if you want them to withhold 20% of the gain and forward it on to the federal government for you, you certainly don't have to but it typically is an option.

              If you want to avoid the conversation with the rep just call the company (typically phone number on the front of the policy) tell them you want to cancel the policy and they will send you a form to sign and an email to the rep letting them know you are canceling so they can attempt to preserve the business.

               
              Scott Nelson-Archer, CLU, ChFC
              303-953-0263 Direct / [email protected]

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              • #22
                Also, just note that when you call NWM's Customer Service Department in order to request the Surrender Form, they will mostly likely ask you for both your updated phone number and email address, so BE SURE NOT to provide your actual email and phone number to them, as the old agent will most likely try to get in touch with you and pester you with your decision. Of course, he may already have your phone and email, but this is just a word to the wise.

                I know this, as I actually replaced a NWM "Term to age 75" policy last week and when the client and I both called NWM's Customer Service Department in order to cancel his EFT, the rep asked us for both his updated phone and email, so this is something that they seem to do.
                Jason P. Veirs - Life and Disability Insurance Broker located in San Diego, CA - Owner of www.InsuranceExperts.com
                Office Direct: (619) 334-2400 | Email: [email protected]

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                • #23
                  So, as I try to move my Roth IRA's from NWM will this become my target for my backdoor roth IRA? Can my new IRA and backdoor Roth be at the same company? I was thinking of using Vanguard especially with the recent news that the wall street banks seem to be penalizing the vanguard funds if you invest in them through their companies. Does that make sense?

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                  • #24




                    So, as I try to move my Roth IRA’s from NWM will this become my target for my backdoor roth IRA? Can my new IRA and backdoor Roth be at the same company? I was thinking of using Vanguard especially with the recent news that the wall street banks seem to be penalizing the vanguard funds if you invest in them through their companies. Does that make sense?
                    Click to expand...


                    You are conflating a number of issues. Yes, you can transfer your Roth IRA to Vanguard. Yes, your new Roth IRA can become your landing point for your back door Roth IRA funds. The penalizing point is overblown, however, and really has little to do with this discussion.

                    Comment


                    • #25







                      So, as I try to move my Roth IRA’s from NWM will this become my target for my backdoor roth IRA? Can my new IRA and backdoor Roth be at the same company? I was thinking of using Vanguard especially with the recent news that the wall street banks seem to be penalizing the vanguard funds if you invest in them through their companies. Does that make sense?
                      Click to expand…


                      You are conflating a number of issues. Yes, you can transfer your Roth IRA to Vanguard. Yes, your new Roth IRA can become your landing point for your back door Roth IRA funds. The penalizing point is overblown, however, and really has little to do with this discussion.
                      Click to expand...


                      Thanks so much @Vagabond_MD . I guess I am getting into the point where I know just enough to be dangerous but not enough to make valid decisions yet! I appreciate the clarification.

                      Since my work's 403b is through Fidelity would I be better off bringing our IRA's there for sake of convenience? Do these places reward having multiple accounts or anything like that?

                      Comment


                      • #26










                        So, as I try to move my Roth IRA’s from NWM will this become my target for my backdoor roth IRA? Can my new IRA and backdoor Roth be at the same company? I was thinking of using Vanguard especially with the recent news that the wall street banks seem to be penalizing the vanguard funds if you invest in them through their companies. Does that make sense?
                        Click to expand…


                        You are conflating a number of issues. Yes, you can transfer your Roth IRA to Vanguard. Yes, your new Roth IRA can become your landing point for your back door Roth IRA funds. The penalizing point is overblown, however, and really has little to do with this discussion.
                        Click to expand…


                        Thanks so much @Vagabond_MD . I guess I am getting into the point where I know just enough to be dangerous but not enough to make valid decisions yet! I appreciate the clarification.

                        Since my work’s 403b is through Fidelity would I be better off bringing our IRA’s there for sake of convenience? Do these places reward having multiple accounts or anything like that?
                        Click to expand...


                        I have a majority of my assets (include wife’s retirement workplace plan, my workplace retirement plan, wife’s deferred comp, multiple IRAs, UTMA accounts, and taxable accounts) at Fidelity. If you are looking for plain Jane index funds and ETFs, they offer the same products as Vanguard with nearly identical pricing. They are also considerably better on the service sign.

                        It might be a coincidence, but as my assets have grown, I have noticed that we get increasingly stronger and faster phone service, the once or so a year we need something. There may be more tangible benefits to holding all of your assets at Fidelity, but I have not checked much into it.

                         

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