KALÖN WOMEN: Common IRA Mistakes

Guest Author: Ronit Rogoszinski

In the last two months we discussed living within your means and the different strategies you can employ to help you achieve your financial goals. One of the most asked about goals is saving for and preserving retirement savings. Today I will review the 5 most common mistakes I’ve seen clients make in setting up their retirement savings accounts and the eventual transfer of those assets upon their death.

Failing to Complete an Indirect Rollover Within 60 days
You have only 60 days to redeposit funds withdrawn from a retirement plan, including amounts withheld for taxes, to another qualified retirement plan or risk losing the tax deferred status of the investment. What that means is that if you are to “move” your IRA, for example, from one bank to another bank’s IRA, a DIRECT rollover means the account owner requests that the custodian of the receiving account “collect” the funds from the institution currently holding the account. This is also referred to as Trustee to Trustee transfer. The INDIRECT transfer means that the individual personally transfers the funds from the qualified account in one institution to another qualified account at a different institution, usually in the form of a check payable to the IRA owner. If the funds aren’t deposited in the new institution within 60 days of the distribution date, taxes and any associated penalties will be due.

Suggestion: Whenever possible choose DIRECT rollover or transfer between the two institutions.

Spousal Continuation Mistakes

• When one of the spouses passes away, the surviving spouse has the option to treat her late husband’s IRA as her own, or roll the IRA over into her own IRA. Sometimes that may not be the best option.

• When the surviving spouse is under 59½ and needs income, there is no 10% penalty on distributions from the IRA kept in the deceased spouse’s IRA.
• When the surviving spouse is older than 70½, doesn’t need income now, and her late husband was younger than 70½, she may keep his IRA in his name. This will allow her to delay mandatory distributions from his IRA until the deceased spouse would have turned 70 ½ had he not died.
• Finally, (please confirm this with your accountant), if the applicable federal estate tax exemption has not been fully used, the surviving spouse may want to “disclaim” rights to a portion of the IRA up to the amount of the applicable exemption.

Suggestion: Consider all possibilities before you choose how to take over your deceased spouse’s retirement savings. Once the decision is made it cannot be reversed.

Failing to Name a Beneficiary

Whatever you do, don’t make this mistake!! Unlike many other properties, IRA’s don’t pass by a will; they pass according to the terms of the IRA Beneficiary Designation Form. Therefore, this document could be one of the most important estate planning documents. Here’s what can happen if you overlook it or neglect it over time:

• The default beneficiary will generally be the owner’s estate.
• This most probably will cause the loss of the “stretch” option and spousal continuation options discussed previously.
• The distribution will have to be done lump sum or within five years after the death of the owner. Note – if the IRA owner was older than 70½ when he passed away, the estate may continue to take distributions over his life expectancy as if he had not died.
• This may also cause the IRA to have to be probated which adds cost, consumption of time and a public process, all which could be avoided by an updated Beneficiary Designation Form.
• Income tax rates are usually higher when IRA’s are paid to an estate, costing additional dollar lose to the account’s value.

Suggestion: Name a beneficiary on your IRA account! You should also name a contingent beneficiary in case the beneficiary predeceases the owner; this ensures that the IRA assets don’t pass to the estate and ultimate probate.
Failing to REVIEW and UPDATE Beneficiary Designation Forms

As we just discussed, the named beneficiary on the designation form is entitled to the assets of the IRA. Therefore, you need to review the designation form at least annually or upon life events such as birth or adoption of a child, marriage, divorce or death of a family member. Not reviewing and updating the document could lead to an unintended member of your family inheriting your assets upon your death. Also, please note that if your grandchildren are named as beneficiaries, make sure the value of the IRA and any other assets passing to the grandchild do not exceed the applicable generation-skipping transfer tax. To the extent that it does, there could be additional taxes due. Please consult with your tax advisor.

Suggestion: Set up a reminder to review beneficiary designation form annually and update according to changing circumstances in your life. This will ensure unintended beneficiaries from inheriting your IRA’s.

Beneficiaries Fail to “Stretch” the IRA

Should a beneficiary liquidate the inherited IRA too quickly, it could result in immediate taxes due and prevent the assets of the IRA to provide possible long term income. The stretch feature of an inherited IRA has certain advantages:

• Beneficiaries may spread tax liability over their lifetime.
• The undistributed IRA assets will continue to be invested in a tax deferred manner, even as distributions are occurring each year.
• Additional IRA assets can be accessed as needed.

Suggestion: If maximizing the stretch feature is important to you make sure the beneficiaries know the rule and explore the option before taking possession of the IRA’s assets.

There are additional issues to be reviewed and discussed regarding IRA's. You will have to tune in next month to learn about the next group of mistakes IRA owners make in setting up, managing and ultimately passing their retirement assets on to their heirs.

Ronit Rogoszinski has been helping individuals and professionals understand the world of finance and wise personal money management for over twenty years.

A graduate of Queens College’s Scholars Program, Ronit holds FINRA Series 7 and 66 registrations through LPL Financial and is New York State certified in Long Term Care Insurance. As the proud mother of four children, Ronit understands firsthand the demands we all have in our fast paced lives. Yet her calm, personal and relaxed nature help to put her clients at ease while remaining focused on the job at hand – realizing and bringing them closer to their financial goals.

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KALÖN WOMEN: Common IRA Mistakes

KALÖN WOMEN: Road Map for the Coming Years

Guest Columnist: Ronit Rogoszinski

In speaking with clients over the past few months, I found that time and time again they were dismayed to find themselves back in the same hole they had worked so hard to get out of. There isn’t just one challenge that faces individuals trying to get financially healthy, but rather several common mistakes that collectively seem to steer individuals off track. I want to take this opportunity over the next several months to map out some common errors and make suggestions to help you find solutions that will put you back on a successful path!

1 - Understand to the penny where your money is going.

I know that whenever I bring this first step up I get the sigh and rolling eyes as client’s huff and puff about having to do this AGAIN. (This is the same kind of feeling I get when I’m in the car with my kids and from the backseat I get the usual ”are we there yet?” whine). Yet as much as this step seems to be despised, many simply don’t do it for reasons such as procrastination or simple denial. I recommend you track this over several months, not just a week. This is a great way to get a true grasp over where you are spending your money. The good news is that today there are many templates and work sheets your advisor can provide for you. To track cash, here is a hint- if you pay your bills on line start by looking for a summary of your bill payments for the current year and previous year then all you need to track is where you spend the cash that you take out of the ATM.

2- Create a budget

Once the tracking is accurately complied over several months a true picture will emerge as to where your money goes. These facts will then enable you to put together a realistic budget. You’ll be amazed as to how much more in control you’ll feel once you’ve gone through this exercise! However, this budget MUST be revisited consistently over time. If your goal is to revisit it once a year, make sure you set a date each year and stick to it. The goal should be to first see how closely you stayed within the budget and then how to cut the budget by about 5-10% for the coming year. I can tell you that the nuisance of changing an insurance carrier or a phone provider is something I personally dislike, however, if the short term inconvenience saves me money, so be it.

3- Pay Down Debt

Another practice you’ll need to implement at this time is increasing your payments to the debt side of the equation. Paying minimums once a month will only perpetuate your debt indefinitely. List your debts from the highest interest rate to the lowest and start to pay more than the minimum on the highest interest rate account, as well as increasing the frequency of the payments.

Next month I want to move to the second step in our road map plan which will address living within your means. As our country struggles to get back to economic health you’ll hear rhetoric about consumer spending a lot. Unfortunately, what’s been supposedly good for the country over the past decades is not good for us the individuals. Addressing this next step will mean some serious soul searching both as individuals and as a society at large.

Ronit Rogoszinski has been helping individuals and professionals understand the world of finance and wise personal money management for over twenty years. The New York partner of Arch Financial Group, Ronit is a graduate of Queens College’s Scholars Program, holding FINRA Series 7 and 66 registrations through LPL Financial. As the proud mother of four children, Ronit understands firsthand the demands we all have in our fast paced lives. Yet her calm, personal and relaxed nature help to put her clients at ease while remaining focused on the job at hand – realizing and bringing them closer to their financial goals.

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KALÖN WOMEN: Road Map for the Coming Years

KALÖN WOMEN: Math You Can Understand

Guest Columnist: Ronit Rogoszinski

The title alone may cause some of you to flip the “screen” over to the next article so before you do, I will encourage you to stop, take a deep breath and read on as I promise you this will be the sort of math you will want to know.

In basic algebra when one adds for example a positive fifty (+50) with a negative fifty (-50), the outcome is simple – it’s zero (0). However, in the world of investments that does not add up as easily. If you’ve invested $100,000 in the market and you lose 50% (-50) your investment is now worth $50,000. If you gain 50% (+50) you’ll get back up to $75,000. To get back to zero sums ($100,000) your $50,000 will need to earn 100% ($50,000).

In reality from the highs of the market in October 2007 to the market lows of March 2009, the Standard and Poor’s 500 Index (S&P) fell nearly 57%. Since then, the same index has recovered dramatically rising almost 65% from the lows of March. However, even with this dramatic recovery it didn’t translate into a complete recovery in everyone’s portfolios. As in the example I’ve outlined above a 50% loss will only be offset with 100% gain. Based on this truth, the S&P 500 in order for it to return to the high of October 2007 will need to increase over 135%.

This concept is known as “the arithmetic of loss and recovery” and it highlights the importance of making down side protection the key when selecting investments. Take a look at your accounts and have a conversation with your advisor on how each position in your portfolio is correlated to the market. Like a great salad, a little of a few styles will best insure you against the dramatic swings in the market affecting your portfolio.


Ronit Rogoszinski has been helping individuals and professionals understand the world of finance and wise personal money management for over twenty years. The New York partner of Arch Financial Group, Ronit is a graduate of Queens College’s Scholars Program, holding FINRA Series 7 and 66 registrations through LPL Financial. As the proud mother of four children, Ronit understands firsthand the demands we all have in our fast paced lives. Yet her calm, personal and relaxed nature help to put her clients at ease while remaining focused on the job at hand – realizing and bringing them closer to their financial goals.

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The National Networker Companies™ and TNNWC Group, LLC

“Empowering Emerging Enterprises”

Membership in TNNWC’s Global Interactive Cooperative Business Community is free of charge and entitles you to receive both The National Networker Newsletter and The BLUE TUESDAY Report, as well as access to our unparalleled Suite of Business Services.

Join Us! Simply click on http://bit.ly/JoinTNNWC

Visit our website at http://www.TheNationalNetworker.com

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KALÖN WOMEN: Math You Can Understand

KALÖN WOMEN: Saving at 40 Plus

Featured Columnist: Ronit Rogoszinski


Where to start?

We women entering our 40's and 50’s professionally speaking, should be reaching our peak earning years. However, at this stage of life we also start facing the reality of becoming the “sandwich” generation; an honorable distinction that comes from having aging parents and growing children. As we move through these years we should see our net worth steadily rise. Yet, for most of us the opposite has been true as the jobs market has shrunk, the recession proved to be deep and the general gloom and doom seems to have seeped into every crevasse of the global market.

So, what are we to do?

Well, if you’re like me, doing something versus sitting around paralyzed by fear is the only way to go. The following simple ideas will help you move into a positive, productive and proactive mind set.

First, take an inventory of your assets and liabilities. We’ve all been hearing on how we should spend less and save more but do you really know what you’re spending money on? Do you know for sure what income is actually earned? Do you have a realistic valuation of your assets? If you just answered “not sure” to any of these statements, you need to move. Start by tracking your spending over a period of 30 days (most of my clients never make it past the first week which is still better than not doing this at all). Track all income, whether it’s the direct deposit of your paycheck or the interest earned on savings. Everything gets tracked for one month!!

Then, subtract your expenses and spending from the income you totaled and see what number come up. One of two things will happen right here:

1. Negative result means you’re spending more than you earn. You’ll need to go over every item on your expense and spending list to see what is necessary and what is not. Eliminating just a handful of the frivolous expenses can make a huge different in the outcome.


2. Positive result means you are spending less than you make which is great. Still, reviewing your expenses as well can prove to be a good exercise in eliminating any frivolous spending. This house cleaning can free up cash for other more worthwhile endeavors.

Next, organize your portfolio. Asset allocation - the strategy of dividing your portfolio among the major asset classes of equities, fixed-income securities, and cash equivalents - is vital no matter what life stage you are in. Your asset allocation should be based on your goals, your tolerance for risk, and your time horizons. It probably will require modification or rebalancing over time. Generally speaking, the larger the equity portions of your portfolio, the greater the potential for growth and the greater amount of risk. On the other hand, the more fixed-income securities you include, the greater the potential for income and preservation of principle. There are risks associated with fixed-income investments, although they generally incur less risk than equities. I plan to address this issue very closely in future newsletters as well as tips on how to talk to your financial advisor if you have one working with you. During these times of turmoil having an open line of communication with the entire team of professionals who work for YOU, is so important. Finding those who will listen to your concerns and address them to your satisfaction, is key to organizing your portfolio.

Finally, for now protect what you've accomplished. As your wealth continues to increase, it's important to preserve what you've accumulated and safeguard your future. That's why estate planning and risk management are two of the cornerstones of a sound financial plan. A qualified financial professional can help you implement an estate plan that is best for your situation or review an existing plan to ensure it is still consistent with your goals. Also, be sure you have enough protection in place to help cover any liabilities -- such as your mortgage -- and protect your family's financial future.

Financially speaking, mid-life shouldn't be a time of crisis, but rather a time to take advantage of some of your most productive years. As members of Kalon Women we are all looking for opportunities to grow, reinvent ourselves and test out unchartered waters. Managing your finances need not be the one subject you keep pushing away but rather embrace it as another facet of who you are. Recession or not, gaining control over your finances will help ease your mind and free you up to pursue what Kalon Community is all about – find the beauty in side of you.


Ronit Rogoszinski is a Registered Representative with and securities are offered through LPL Financial, member FINRA/SIPC. Ronit may only discuss and /or transact securities business with residents of the following states: NY, NJ, CT, FL, CA. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individuals. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.

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The National Networker Companies™ and TNNWC Group, LLC

“Empowering Emerging Enterprises”

Membership in TNNWC’s Global Interactive Cooperative Business Community is free of charge and entitles you to receive both The National Networker Newsletter and The BLUE TUESDAY Report, as well as access to our unparalleled Suite of Business Services.

Join Us! Simply click on http://bit.ly/JoinTNNWC

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KALÖN WOMEN: Saving at 40 Plus

KALÖN WOMEN: Women as Savvy Investors - Yes YOU!

Guest Columnist: Ronit Rogoszinski

With 80-90% of women ending up managing their own finances at some point in their lives, becoming a savvy investor can never start too soon.

Understanding your role and clarifying your goals are the first steps in taking charge of your finances. It is so important to understand that you are responsible for your money not anyone else. I speak with women all the time who feel that their ignorance of money and finance disqualifies them from ever asking questions or taking on an active role in managing money. Granted, initially it may be an overwhelming task, but like anything else in life, one step at a time, in a forward motion gets you going and keeps you going towards reaching your goals.

So what am I here to share with you today? I wanted to give you some insight as to some of the first steps you should take in becoming a savvy investor. As I mentioned before you need to understand the role you will play in this process and the goals you want to achieve. Your role may very well be a passive one in managing your finances. If you have a spouse, an advisor or someone in the family who has managed your money for you, that’s fine. However, you should ask questions and request to become more involved in understanding the strategy and focus of the account. Don’t take no for an answer! I hear this all the time “I am made to feel so stupid when I ask questions” or “I don’t understand the answers so why ask the questions”. Ahh!! This is your money; this is your financial future. If you are made to feel incompetent or the individual lacks patience in teaching you – fire them! Obviously, if it’s your spouse or your uncle that may be hard; however what I mean is, explain that you want to better understand the strategy of the account and if they can’t respect your wishes, find an advisor you’re comfortable with and start your own portfolio. The goals for this account will matter greatly and so an honest conversation with the individual you are hiring should establish the parameters of how the funds will be invested. An ongoing relationship that allows you to learn in an open manner is priceless, so respect the person you’re working with by setting rules and roles for both of you to follow.

As you expand your involvement, here are some topics you must discuss and know from your spouse or the person managing your family’s finances, if you have been passive all these years. Ask what your net worth is. This measure that takes the total value of your assets (what you own) and subtracts from it the total value of your liabilities (what you owe) should be positive and growing. You will also want to know where all the investments are being held and who do you need to contact in an emergency to access these funds. Do you and your spouse have life insurance? In which case again, where and who do you need to know? Before I go on I will tell you ladies that most men do find this line of questioning very intimidating and may get quite irate from it. Others will be totally relieved that you are finally taking some action in protecting yourself in case they can’t take care of you. Be prepared that the response you may get may not be what you expect it to be.

I strongly encourage women of all ages to get involved and start by taking the first steps towards becoming a savvy investor by asking questions, looking over what you already have and finding someone you are comfortable talking to in helping you on this learning curve. It’s never too late to get going.


Ronit Rogoszinski has been helping individuals and professionals understand the world of finance and wise personal money management for over twenty years. A graduate of Queens College’s Scholars Program, Ronit holds FINRA Series 7 and 66 registrations through LPL Financial and is New York State certified in Long Term Care Insurance. As the proud mother of four children,

Ronit understands firsthand the demands we all have in our fast paced lives. Yet her calm, personal and relaxed nature help to put her clients at ease while remaining focused on the job at hand – realizing and bringing them closer to their financial goals.

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The National Networker Companies™ and TNNWC Group, LLC

“Empowering Emerging Enterprises”

Membership in TNNWC’s Global Interactive Cooperative Business Community is free of charge and entitles you to receive both The National Networker Newsletter and The BLUE TUESDAY Report, as well as access to our unparalleled Suite of Business Services.

Join Us! Simply click on http://bit.ly/JoinTNNWC

Visit our website at http://www.TheNationalNetworker.com

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KALÖN WOMEN: Women as Savvy Investors - Yes YOU!

SOUND INVESTING: Hire A Financial Advisor: A Sound Investment Decision

Sound Investing with Jason Lampa, MBA

Though not a philosophy shared by many of my peers in the financial services industry, it is possible to beat the market (S&P 500) on an annual basis. Money managers do so in their personal accounts more times than not. This is kept secret because if it were made public, it would make continuously beating the market more challenging. I have always been one to ruffle some feathers and this time is no different.

It is time that individual investors take control of their finances and empower themselves through education. Contrary to what the media may publicize, 99.99% of the financial advisors that I work with on a daily basis are honest professionals who treat their clients money as if it is their own account or the account of a family member. The first thing that all serious investors should do is hire a financial advisor. It isn't because it guarantees fantastic portfolio performance. The purpose of hiring an advisor is to make sure your money stays invested in the investment vehicles that can make you money. A good financial advisor is there to manage your behavior more than your money. The Dalbar study is probably the most convincing evidence of why investors should hire a financial advisor. For a period of 20 years ending in 2008, the average investor account made 1.87% per year, while the S&P 500 did 8.35%.

That is a tremendous difference. This is why discount brokerage firms make commercials telling the general public to fire their advisor and do-it-yourself. These firms push the use of index investing and that most investment managers under perform the market. It is a dangerous message. For investors who have a competent, experienced advisor, most likely they are not part of the group that had accounts generating 1.87% per year. Investors get into trouble when they begin to actively trade on their own, selling low and buying high. Please hire a financial advisor before investing.

Your relationship with a financial advisor must be a two-way street. Your input should be appreciated and the advisor should incorporate your ideas into your overall portfolio. Beware of those professionals who tell you to trust them and they will take care of everything. These people do not have your best interest in mind. The quality advisor will take the time to listen to your investment goals and that which you want to accomplish in your lifetime. They actively involve you in the selection of individual stocks and alternative investment ideas. Overtime, this benefits good advisors. A knowledgeable consumer will realize the value that advisor brings to the table and remain with that advisor through the course of many decades. A good financial advisor is worth their weight in gold.

The prevailing opinion in the marketplace is that investment professionals charge too much for their services. For some reason that I still do not understand, the general public feels that investment professionals should work for free or do not deserve to charge fees on the money they manage. Let me provide the following example to make a case for advisors and their fee.

Acme Investment Management charges 2.50% on annual basis to manage investors money. Included in this fee is access to world-class investment managers, a monthly newsletter provided by Acme and monthly financial education seminars hosted by Acme. The wealth mangers at Acme invest their clients money in publicly traded companies as well as exchange traded funds that provide access to alternative investment instruments that exhibit low to negative correlation with the overall stock market. In 2008, the average client of Acme Investment Management lost between 3-12% based on the model portfolio they invested in.

As we have seen the average investor return is under that of the market but for this example will say that those investors performed as well as the market did in 2008. The S&P 500 went down more than 35 percent in 2008. Using our hypothetical example, we note the Acme Investment Management's clients that experienced the worst performance lost -12% in 2008. Taking into consideration their 2.5% annual fee and the 23% Acme outperformed the market, investors received 9.2 years of free advice and portfolio allocation. If we take 23 and divide it by 2.5, we come up with 9.2. Based on most on the average investor performing worse than the market, our example is conservative.

When you meet with advisor, I recommend that investors tell them they want to be invested in five or more asset classes. Let them know that you believe in both traditional and alternative investments and you want no more than 150-200 companies in your entire portfolio. Overdiversification is one of the biggest culprits for investors receiving poor returns.

In summary, before investing, meet and hire a financial advisor. Make sure you play an active role in deciding what investments go into your portfolio and make sure that you invest in securities within multiple sectors which perform differently based on the economic cycle. Empowering yourself by becoming an educated financial consumer will help you find an advisor that fits your needs.

For more information, please visit Jason's TNNW Bio.

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The National Networker Companies™

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Membership in TNNWC’s Global Interactive Cooperative Business Community is free of charge and entitles you to receive both The National Networker Newsletter and The BLUE TUESDAY Report, as well as access to our unparalleled Suite of Business Services.

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SOUND INVESTING: Hire A Financial Advisor: A Sound Investment Decision