Firm:
Finivi | Financial Advisors
Job Title:
Founder, President and Chief Investment Officer
Biography:
Eric C. Jansen is the Founder, President and Chief Investment Officer of Finivi Inc. an SEC Registered Investment Advisor and chairs the firm's Investment Committee and Digital Currency Team. With over 30 years of experience in both client facing and investment portfolio design and management roles, he is an accomplished and highly respected wealth management professional.
He graduated Magna Cum Laude with a Bachelor’s degree in Economics from Framingham State University in 1987 and is a graduate of Purdue University’s Professional Management Institute. In addition, he earned the Chartered Financial Consultant (ChFC) designation from the American College. He also proudly served in the Military Intelligence branch of the United States Army Reserve for nearly a decade.
Prior to founding AspenCross Wealth Management in 2001, Eric served as a Managing Partner and Wealth Management Professional for John Hancock Financial Services, working exclusively with high net worth, and ultra-high net worth individuals and families in developing multi-generational wealth transfer strategies and integrated investment management solutions.
Eric is responsible for the strategic direction of the company, it's overall investment philosophy, all aspects of the client experience, and serves as the firm's "Chief Culture Officer".
If asked why after nearly fifteen years of working with a small select clientele, would he want to launch his own firm, Eric will enthusiastically and passionately tell you that he wanted to create an organization singularly focused on helping clients learn to use their money to improve their lives, and the lives of those around them. Today, by using state of the art technology, and a team-based approach, Finivi is able to deliver both in-person and virtual financial planning services, combined with institutional quality investment management to thousands of clients located throughout the United States.
In addition, breaking away from common industry practice, Eric wanted all Finivi advisors to be salaried full-time employees, not commission-based financial representatives, enabling every AWM team member to focus 100% of their efforts on delivering unbiased, highly personalized advice and guidance to the firm's clients and their families, not on earning a commission or vying for some company sales award.
As a fee-based financial advisory and investment management firm focused exclusively on helping people make smarter financial choices that lead to more life choices, his firm's professional culture and business philosophy seem to be resonating well with clients.
Education:
Economics / Finance, B.A.
Assets Under Management:
$110 million
CRD Number:
1719437
Disclaimer:
Securities offered through TRIAD Advisors, Member FINRA/SIPC; Advisory Services offered through Finivi Inc. an SEC Registered Investment Advisor. 1400 Computer Drive, Westborough, MA 01581. (800)530-6635 Privacy Policy / Disclosure Brochure
Licensed to offer Securities in the following states:
AZ, CA, CO, CT, DC, FL, KS, MA, MD, ME, MO, NH, NY, NJ, NV, PA, RI, SC, TX, UT, VA, VT
That's a great question. Although the price of oil (and other commodities) has often been viewed as an indicator of economic strength, when prices were high, or weakness, when prices were low, that is not always the case. Low oil prices benefit consumers who in turn may spend more on goods and services, consumer discretionary stocks tend to do well in this envirnment. In addition, airlines, shipping and freight companies, automobiles, and even consumer staples tend to do well in a low oil price environment. So in summary, low oil prices don't always indicate a slowing domestic or world economy as there may be other factors invloved, as there is today, such as oversupply that is driving oil prices down.
That’s a great question. The answer depends on a number of factors. Let’s first start by reviewing how the IRS classifies each withdrawal and what is considered taxable versus non-taxable, or penalty free.
The IRS looks at Roth IRA distributions in this order utilizing the first-in-first out rule.
1. Contributions
2. Conversion contributions
3. Earnings on your contributions.
Regardless of your age, how long the funds have been in your Roth IRA or the purpose of the withdrawal, the total amount of your Roth IRA contributions can be withdrawn at any time, tax and penalty free. That means you need to keep good records as to the total amount of contributions you have made and the date of your very first contribution.
Next comes withdrawals from Roth conversions. The total amount of conversion contributions are also considered tax free unless it has been less than five years since the conversion, in which case the withdrawal may be free from federal income taxes, but you still may be hit with a 10% penalty.
Note: To ensure withdrawals of your contributions and/or Roth conversion amounts are not taxed you need to file IRS Form 8606 along with your 1040 for the tax year the funds are withdrawn.
With that background information in place, we can now begin to answer your question regarding when and how withdrawals that are considered earnings in excess of your contributions are taxed.
The short answer is, it depends. Withdrawals of earnings from your Roth IRA are also tax-free unless:
- You make a withdrawal of earnings prior to age 59 ½. These would be considered nonqualified withdrawals and any earnings would be subject to both federal income tax and a 10% penalty unless you're eligible for an exception.
- It has been less than five years since your first Roth IRA contribution. (Regardless of how many Roth IRA accounts you may have)
(Roth 401k's have their own 5-year clock and Roth IRA Conversion’s five year clock begins on January 1st for the year the conversion was done, Inherited RothIRA's five year clock starts on the original account owner’s contribution date)
Click here to learn more about the five-year rule.
If you make a withdrawal in excess of your contributions before the five-year mark, it would also be considered a nonqualified withdrawal, and as such, it may be subject to income tax and a 10% penalty if you are under the age of 59 ½, unless you're eligible for an exception.
Here are the two exceptions to the tax rules as noted above:
- Home Purchase Exemption
If you've passed the five-year test but you're under 59½, a special exception allows tax-free and penalty-free Roth withdrawals in order to buy a principal residence. However, there's a lifetime $10,000 limit with this exception. (You and your spouse can exempt up to $20,000), and you must use the money within 120 days of the withdrawal. The homebuyer can be you or certain relatives (including kids and grandkids). However, the buyer must not have owned a principal residence within the two-year period ending on the purchase date.
- Disability
If you become disabled before you reach age 59½, any distributions from your Roth IRA because of your disability are not subject to the 10% additional tax, but may still be subject to income taxes if the five year rules noted above are not met.
According to the IRS: You are considered disabled if you can furnish proof that you cannot do any substantial gainful activity because of your physical or mental condition. A physician must determine that your condition can be expected to result in death or to be of long, continued, and indefinite duration.
Note: The information provided above is for educational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Representatives of Signator Investors, Inc. do not provide tax and legal advice. Please consult your tax advisor or attorney for such guidance.