Beta of 0.9 to be lowered to 0.5 and asset allocation to be diversified
into Emerging International Markets and Energy Sectors. Specific
recommendations and funds to follow.
Municipal bonds should not be in tax-advantaged IRA's, because they are
already tax-free on their own (at the state level). Specific
recommendations to follow.
Education Planning
Currently Peter's 529 plan only has enough to cover two years of college. Increase
contributions to Peter's 529 plan by $10-$12k per year to take
advantage of its tax-preferred status.
Insurance Planning
The value of your home has dropped, and you seem to be over-insured because
you still have your old home value listed on the policy. Check to see if
you can reduce the coverage on your Home Insurance to lower your premium.
Disability Insurance has the Catastrophic Rider clause at an additional
cost of $525 per year. Consider dropping this rider as discussed.
Retirement Planning
Early retirement at age 55 doesn't seem possible based on Cash Flow
analysis and current expense assumptions. However, this goal may be met by
reducing expenses by $8k annually. Further What-If analysis to be conducted
at next meeting.
A rollover from an IRA to a Roth IRA is recommended, based on our analysis
of your tax savings and cash flow. Rollover to occur in 25% increments over
4 years to reduce tax impact.
Estate Planning
Wills are in place, however need Advanced Health Care Directive and Durable
Power of Attorney documents. Estate Planning Attorney referral to be sent
shortly.
Tax Planning
You can include recent medical expenses incurred on your itemized
deductions for 2011, let's consider amending your return.
Separate credit card and bank accounts to be opened for your consulting
practice to separate business and personal expenses. Follow-up to be
conducted in 6 months on progress.
Learn more about the professional history of our
financial advisory team at FINRA Broker Check
