Firm:
Enhance Wealth Advisors®
Job Title:
CFP®, Accredited Wealth Management Advisor
Biography:
Helping people plan well to live well is what drives every process at Enhance Wealth Advisors®. Since 1986, Terry Allen, CFP ®, AWMASM has helped clients navigate the complexities of everyday life. She does this by making sure they have a plan in place to help them reach their goals, as well as plan for the unexpected. Each client is unique and Terry works hard to help them meet their specific needs. She is an advocate who works tirelessly on her client’s behalf.
Terry is a Certified Financial Planner™ (CFP®), and Accredited Wealth Management AdvisorSM (AWMASM) and earned her professional designations from the College for Financial Planning. Separately, she is a Financial Advisor with Royal Alliance Associates, Inc. Terry is a member of the Financial Planning Association (FPA), Estate Planning Council of the East Bay and is Immediate Past President of the Estate Planning Council of Diablo Valley. She graduated from the University of San Francisco with a Bachelor of Science Degree in Mathematics.
Terry is a sought after thought leader. Her interviewers include Forbes Magazine, the leading source for reliable business news and financial information, The Suit Magazine, a publication that features successful corporate executives and professionals and Rental Housing Magazine, a publication of the East Bay Rental Housing Association.
As a Certified Financial Planner™ and Accredited Wealth Management AdvisorSM, Terry has guided her clients through major life changes, including retirement, sudden wealth and/or the loss of a spouse.
Terry has a wealth of knowledge and experience as a real estate investor. She has owned and managed residential rental property for many years. She served on the board of directors of the East Bay Rental Housing Association for over ten years, and also served as its president. Terry serves on the Board of Directors as Treasurer for East Bay CREW (Commercial Real Estate Women). CREW is the industry's premier business networking organization dedicated to supporting the achievements of women in commercial real estate. Terry’s real estate expertise allows her to provide specialized planning and advice for those involved in the real estate industry.
For Terry, the most fulfilling part of her practice is helping people create a more rewarding and prosperous future. While each client is unique, all have this in common: they want objective advice from an experienced professional who cares about them. Clients find this and more in Terry Allen, who seeks understanding first, then applies wisdom and industry knowledge to help them plan well to live well.
Education:
BS, Mathematics, University of San Francisco
Fee Structure:
Fee-Based
Commission
CRD Number:
1498096
Insurance License:
#0781632
Disclaimer:
Securities and advisory services offered through Royal Alliance Associates, Inc., member FINRA/SIPC and a Registered Investment Advisor. Insurance services offered through Enhance Wealth Advisors which is not affiliated with Royal Alliance Associates, Inc. or registered as a broker-dealer or investment advisor. Additional insurance offered by Mary T. Allen, independent of Royal Alliance Associates, Inc
Yes, you answered your own question. Contributing the maximum amount to your 403(b), $18,000 in 2016, or $24,000 if you are age 50 or older, will reduce your taxable income by $18,000 or $24,000 respectively.
If you go back to work in a position that is covered by Social Security, then your earnings will be subject to Social Security tax.
Earnings during retirement continue to be applied to a person’s SS earnings record. Your SS benefit is calculated based on the highest 35 years worth of earnings, so going back to work would replace any “zero” earnings years with current earnings. This will increase your SS benefit.
If in your 35 years of highest earnings, you have years with less income than you are earning in retirement, the lower earnings years will be replaced by a higher earning year and increase your SS benefit.
I commend you, as a 20 year old, for thinking about investing. To clarify, a 401(k) and a Roth IRA are types of tax-advantaged accounts and a mutual fund is an investment vehicle. The quick answer is to invest in all three, if you are financially able. What is your objective? Will you be investing funds for retirement or for use in the near term? IF investing for retirement, it is important to know whether income taxes are an issue for you. What is your tax bracket? Do you need a tax deduction?
If your company matches 401(k) contributions, then contributing to a 401(k) will turbo charge your savings by increasing the amount added to your plan.
If you make pre-tax contributions to your 401(k), your taxable wages will be reduced by the amount of your contribution. If your company has a Roth component to their plan, and you contribute, your taxable wages will not by reduced by all the earnings and qualified withdrawals from your Roth will be tax free.
You can rollover your lump sum into a traditional or convert it to a Roth IRA. As each individual’s tax situation is different, take time to consider all of the facts and consult with your tax advisor before initiating a rollover or conversion. Whether you are employed or not has no impact on whether you can rollover a lump sum from a prior employer into an IRA.
You will be subject to income taxes on the amount you cash out, and if you are under 59 ½, you may be subject to a penalty as well.
Another thing to keep in mind is that perhaps taking a lump sum, rather than a pension, is not the best long-term strategy for you.