All Forum Posts by: Michael Metzger

For the real estate agents out there. I know you all have very little free time and get pulled in many different directions. But let’s say you wanted to start planning to take more time off to enjoy your family and the activities you enjoy. How would you go about that? Are you able to hire virtual admins? Do you have someone in your office to take listings and do the paperwork?

I’m just curious for real estate agents, logistically how you could start scaling back on your workload if you wanted to?

Thanks!

@Geoff Shaw You can keep all licenses simultaneously. It would actually be a great benefit if you keep up  with your education for both. However, if you are moving to a mortgage brokerage, they may want you to drop your Series 7/66 etc. If they do, it’s probably because of any potential conflict of interest, not wanting to pay to keep up your licenses, or just a lack of knowledge of license requirements to be a financial advisor

@Joshuam R. I was suggesting that they would have more funds. Two funds, even if diversified, does not constitute a diversified offering of funds. That seems really bizarre that they would not offer more than 2 funds. Hopefully you will be getting some communication about new fund offerings coming as well- ideally there should at least be 8-10 fund options within that Roth401k plan.

@Joshuam R. I think there must be a mistake. 401(k)s are required to offer a set of diversified options. I’m guessing that they are notifying you that the style of fund you were in is now being replaced with those 2 options. But it seems unlikely that they would only provide 2 fund options to everyone. That would violate policies, and Paychex being in that business likely would not do that to themselves. I’m happy to review any documents to help clarify

@Connor Steck I wouldn’t worry about vacancy too much. First, the tax benefits of a vacancy can actually add to your income- as counter intuitive as that seems. Second, it depends on location. Location is everything when finding a good rental. I also own a rental in Utah, and if it is in a desirable neighborhood, near good schools, near employment, etc, you should be alright for renting. You could also convert it into a short-term rental if long-term renting vacancy continues on too long for your comfort.

@Jason Young First, make sure the IRA financial advisor knows if shredding the check is the best option. You have a 60 day rollover window to get those funds back into the IRA with no taxes or penalty.

Second, keep in mind that in addition to the taxes, you also pay a 10% early withdraw penalty. So that will be accessed on your tax return.

Third, please really consider the SDIRA, as opposed to paying unnecessary taxes- it just doesn’t make sense to give the IRS and state money they don’t deserve. It’s your money- you can keep it.

Last, a 401k loan might make sense for you. Wait until you build up your account enough to take a loan of $10k or 50% of 401k account balance up to a max of $50k, whichever is greater (typically). This also makes more sense than pulling money out of your IRA early.

I’m not sure what your housing marketing looks like either, but country-wide its pretty overheated and tough to find deals that make sense right now. Waiting a bit might be prudent.

Hope that helps

@Heidi Emmendorfer You can typically borrow $10,000 or 50% of your vested account balance, whichever is greater, but not more than $50,000. I would still highly recommend talking with a tax accountant first. 

@Heidi Emmendorfer It depends on the plan guidelines and plan administrator, but more in line with HELOC rates.

@Heidi Emmendorfer A loan against a 401(k) is a viable option, but you do have to repay that distribution with interest back in. Flips often can be delayed for longer than expected, so the repayment of the loan has a timing issue. Also consider that flips are also taxed at ordinary income, which can provide tax challenges as well.

I would echo what others are stating and make sure you speak with a tax accountant, as this seems like tax sensitive  situation you are going for

@Sean McDonnell Appreciate the response. That was my thought too- I can always convert it back to a rental