Firm:
MoneyCoach
Job Title:
CERTIFIED FINANCIAL PLANNER ™ & Founder
Biography:
Patrick Traverse, founder of MoneyCoach, decided to get into financial services after an 18-year professional hockey career. His journey to his new career started as a young investor during his early twenties as he became frustrated with the type of help he was getting from his advisors. He felt compelled to learn on his own about everything he needed to know to make proper financial decisions. His new passion for the intricacies of the markets and personal finance pushed him to choose financial planning as a second career.
Patrick and his team know that clients are busy with their life and sometimes feel they don’t have the time to get to learn everything they need to know. Patrick thinks it is important that he advises his clients on every facet of their financial life. He feels that every piece plays hand in hand with each other and if an area of their finances is neglected, it could mean that their whole life plan could come down crashing.
After more than 4 years in the business, Patrick founded MoneyCoach in 2016. He uses his experience as a top-level athlete to help his clients become financially successful. He feels that the most important missing component that most investors do not have is accountability. By being their financial coach, Patrick guides his clients to control their money. Not that money is everything, but so much of our lives depends on how we manage money!
Education:
Organizational Leadership, Quinnipiac University
Assets Under Management:
$10 million
Fee Structure:
Fee-Only
CRD Number:
6089405
Disclaimer:
MoneyCoach LLC and/or Patrick Traverse offer Investment advisory and financial planning services through Belpointe Asset Management, LLC, 125 Greenwich Avenue, Greenwich, CT 06830 (“Belpointe), an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration with the SEC should not be construed to imply that the SEC has approved or endorsed qualifications or the services Belpointe Asset Management offers, or that or its personnel possess a particular level of skill, expertise or training. Insurance products are offered through Belpointe Insurance, LLC and Belpointe Specialty Insurance, LLC. MoneyCoach LLC is not affiliated with Belpointe Asset Management, LLC. Additional information about Belpointe Asset Management is available on the SEC’s website at www.adviserinfo.sec.gov.
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Patrick Traverse Investopedia Interview
A Roth IRA is simply just a type of account. Law makers write the rules on how different types of accounts are being taxed. The way you invest in them depends on the company offering the account.
If you opened a Roth IRA account in a bank, you might only have the option to invest in CD-like products that pay you an interest payment.
If you opened a Roth IRA account with a brokerage institution, you would be able to purchases stocks, bonds, mutual funds and other market securities.
If you opened a Roth IRA account with an insurance company, you would invest in an annuity probably.
Most people have their Roth IRA account invested in the markets. Depending on the performance of the markets and the securities chosen for the investor, the account will fluctuate accordingly.
I hope this helps.
Yes. You can contribute to both.
Even though SEPs are defined as IRAs, they are employer plans. You can contribute to an employer plan and a personal plan like your Roth.
I hope this helps.
Great question! The answer is once you put together your emergency fund, you should invest your other savings. Here's something to think about: The markets are volatile in the short-term (0-3 years) but over the long-term they tend to go up. Therefore, because your goal for your money is considered short-term, you should be careful in the amount of risk you are taking. You do not want to face a drop in the market when you need the money! Here's how I would aproach it:
1) Anything you need within a year, invest in a cash like investment. (Money Market, Savings, Checking)
2) Anything you will need within 1-3 years, invest in a conservative investment. (CD ladder, short-term bonds, ...)
3) Anything you will need within 4-7 years, invest in a moderate risk investment.
4) Anything longer term, you would be able to take more risk for possibly more growth.
Find out exactly what your goals are for this money and invest your buckets accordingly.
I hope this helps.
It could be a great idea depending on your future goals and current situation. Here are a few things to think about:
1) What is your view of future tax rates? Will they increase or get lowered? (if Trump gets this way). Depending on your view, it might help to take advantage of current rates or wait for lower ones.
2) Doing the conversion might affect how much of your Social Security will be taxed. Depending on your current income outside of Social Security, you might only have a small portion of your benefit being taxable. Converting to Roth might not only add taxes from the conversion but also have more of your benefit taxed.
3) Your Medicare Part B premiums could go up. Your premiums depend on your income. Converting might push your cost up.
4) Negative effect on compounding gain. By converting, less of your money will be invested in the markets. If we see gains in the near future, it could mean that you might participate less in them.
Although, I like the fact that you are trying to plan your future tax liability. There are a lot of things to think about when you are deciding on a conversion. Make sure you talk to someone (CPA and/or financial planner) on how this decision will affect you.
I hope this helps.
I think you have the right mindset. Here's a little more details to add precision to your plan.
Your investment plan should match your investment time horizon. The shorter the amount of time until you need a certain amount of money, that money should be invested conservatively. Since you will not need your retirement funds for another 10 years, an all-equity or a growth portfolio should be fine.
Once you are getting closer to retirement, find out how much income you will need from your assets. For example, let's say you need $4000/month in income and have passive income (pension income, social security, rental income,...) of $3000/month, then you will need $1000/m (or $12,000/y) from your assets to supplement your retirement income need. Here's how you would then allocate your portfolio.
1. Cash: $12,000 (Money you will need within the next year should be allocated in cash to rid of any fluctuation)
2. Conservative allocation: $24,000 (Money you will need in year 2 and 3 should be conservatively allocated)
3. Moderate allocation: $48,000 (Money you will need in year 4, 5, 6 and 7 should be allocated in a moderate portfolio)
4. Growth allocation : rest (The rest should allocated in a growth portfolio)
Every year, you should move money from number 4 to 3, 3 to 2, and 2 to 1. This method should help you lower short-term volatility with money you will soon need and still give you the ability to grow your assets for future income need.
I hope this helps.