The Sue Smith Team

08/28/2024

08/26/2024

Retiring Soon or Thinking Of Retiring In The Future? Read On!

Welcome to Money Monday with Suze Orman, a weekly newsletter designed to inspire your financial life and give you actionable insights from the World’s Personal Finance Expert. Like what you’re reading? Subscribe and share with your friends. Let’s dive in…

I am a big fan of 401(k) rollovers into an Individual Retirement Account (IRA) when you leave a job. One of the advantages is that if your 401(k) doesn’t offer low-cost index mutual funds, when you do a rollover to an Individual Retirement Account (IRA) at a brokerage you choose, you will have access to both low-cost index mutual funds and exchange-traded funds (ETFs).

But I want to make sure that you are making the most of your 401(k) rollover.

Quite often when you move money from a 401(k) into an IRA at a brokerage firm, the back-office folks at the 401(k) will first convert your account into cash and then transfer the cash to the firm where you have your rollover IRA.

And it seems that plenty of people just keep their rollover retirement IRA in cash. A recent report says that 30% of people who rollover money from a 401(k) into an IRA leave the money entirely in cash for at least seven years.

That can lead to two potentially costly mistakes. If you have done a 401(k)-to-IRA rollover, or are considering one, please make sure you are making the most of your account.

Do you mean to have that much in cash?

Those of you who have read my Ultimate Retirement Guide for 50+ know that I recommend having at least two years of living expenses set aside in cash (in addition to an emergency savings fund) when you are retired. If you are near or in retirement and your rollover IRA is for this extra cash cushion, that’s fine. But if the rollover account value is more than you need to keep in cash, or you are not yet near retirement, I want you to consider if keeping the entire account in cash is your best move.

Cash, especially when you are retired, is necessary and valuable. But over a 25 to 30 year retirement, it is likely you may also benefit from owning stocks and bonds as well. Over the long-term, stocks are what can provide returns that are better than the rate of inflation. Cash typically doesn’t beat inflation or provide a big enough inflation cushion.

And if you have years, or decades until retirement, you definitely need your portfolio invested with an eye on earning inflation-beating gains over the long term. That’s an argument for owning stocks, not cash.

If you are near or in retirement and aren’t sure how much of your retirement money to invest (rather than keep in cash), I have lots of advice in The Ultimate Retirement Guide for 50+. And regardless of your age, it’s likely that the brokerage where you moved your money has free online tools you can use to help you figure out the right asset allocation for your retirement money.

Are you earning as much as possible on your cash at a discount brokerage?

Okay, now if you have made a carefully considered strategic decision to have retirement money invested in cash, I want to make sure you are earning a solid rate of interest on that cash.
Please don’t assume the company handling your rollover IRA will automatically put you in a cash account that earns the going rate for safe short-term assets.

What you need to check is that your “cash” is in fact invested in a money market mutual fund (MMMF). My preference is a money market mutual fund with the name “Treasury” or “Federal” in it. This means it invests in U.S. Treasury or U.S. agency securities. While no MMMF offers federal deposit insurance (only certain accounts that are offered at federally insured banks and credit unions provide that protection), an MMMF operates very much like a safe savings account, and if you choose an MMMF that invests only in government issues you have an important layer of safety.

As I write this, federal money market mutual funds at low-cost discount brokerages have yields in the range of 4.7% to 5%. If you aren’t earning that much, you may have been “defaulted” into a different type of account. With a few clicks, you should be able to easily transfer (exchange) your cash holdings into a higher-yielding government-focused money market mutual fund.

https://www.linkedin.com/pulse/avoid-common-401k-rollover-mistakes-protect-your-retirement-orman-k1ykc/

Suze Orman

Welcome to Money Monday with Suze, a weekly newsletter designed to inspire your financial life and give you actionable insights from the World’s Personal Finance Expert. Like what you’re reading? Subscribe and share with your friends.

08/23/2024

Choose Your Dream Life!

20 years ago I had the opportunity to achieve "my dream" of owning an equestrian property. Since I was a child, it was all I dreamed about -- I took the leap of faith, purchased the "property" and another chapter of my life began -- it was one of my "best life decisions". The quote, below, resonates with me, and by changing your environment, you change your life and the way you think. This is another reason why I chose the Real Estate profession. I am honored to help others achieve their "dream lives", too!

"Your environment creates your entire reality. When you spend time in big, open, inspiring spaces, your mind becomes big, open, and inspired."

Your environment shapes the way you think, feel, and perceive the world around you. The spaces you inhabit have a profound influence on your mental and emotional state, and in turn, they create your entire reality. When you spend time in big, open, and inspiring spaces, your mind begins to reflect these qualities, becoming expansive, open to possibilities, and filled with inspiration.

The Power of Space
Large, open spaces have a way of making you feel free and unburdened. Whether it’s a wide-open field, a vast ocean, or a room with high ceilings and plenty of natural light, these environments invite you to think beyond the constraints of everyday life. The physical openness of a space can mirror and encourage mental openness, allowing you to consider new ideas, dream bigger dreams, and explore possibilities that you might not have entertained in more confined, cluttered surroundings.

Inspiration from Your Surroundings
Inspiring environments—those filled with beauty, nature, art, or creative energy—can ignite your imagination and drive. When you’re in a space that stimulates your senses and stirs your emotions, it’s easier to tap into your creativity and find motivation. This inspiration isn’t just a fleeting feeling; it can fundamentally alter how you approach challenges, solve problems, and pursue your goals.

Creating Mental and Emotional Expansion
Your environment has the power to expand your mind and elevate your emotions. In big, open spaces, you’re more likely to experience a sense of calm and clarity. This mental and emotional expansiveness helps you to approach life with a broader perspective, making it easier to connect the dots between ideas, see the bigger picture, and embrace new opportunities.

The Influence on Reality
Your environment doesn’t just influence your thoughts—it shapes your reality. When you’re in a space that fosters openness and inspiration, your actions, decisions, and interactions with others begin to reflect this. You may find yourself more willing to take risks, more open to new experiences, and more confident in your ability to create the life you desire.

Designing Your Environment
Recognizing the impact of your environment on your reality empowers you to be intentional about the spaces you create and inhabit. By surrounding yourself with environments that reflect the qualities you want in your life—openness, inspiration, beauty—you’re actively shaping the reality you experience. This could mean decluttering your home, spending more time in nature, or seeking out places that inspire you.

Your environment is a powerful tool that can either limit or liberate your mind. By choosing to spend time in big, open, and inspiring spaces, you allow your mind to expand, your creativity to flourish, and your reality to transform into something more aligned with your highest aspirations.

Contact me today -- what is your "dream life". I'll help you find it!

08/22/2024

Just Sold!

08/22/2024

Sold By Sue in Loudoun County!

Congratulations to the Dean Family on the purchase of Your Dream Home in Loudoun County!

We are thrilled to congratulate you on purchasing your dream equestrian estate in beautiful Loudoun County! This is not just a home; it’s a sanctuary where your equestrian passions can thrive amidst the serene countryside. Enjoy the sprawling landscapes, breathtaking views and the awesome night sky. Your new country property is perfectly tailored to offer you and your horses the lifestyle you’ve always envisioned.

and The Sue Smith Team are honored to have been a part of this milestone in your life and look forward to seeing the many wonderful memories you'll create in this exceptional place. Should you need anything as you settle in, please don’t hesitate to reach out.

Welcome home, we're glad you are here!

Krissy Smith Shellenberger Vesta Settlements Michael Farrell

08/21/2024

Just Sold!

08/21/2024

My Guys Moving & Storage To The Rescue!

A BIG Thank You to Joe Jenkins for your help and assistance with a client in need yesterday. You and your team jumped into action and saved the day! THANK YOU, Joe and My Guys Moving & Storage.

These are just a few of the reasons why we recommend My Guys Moving & Storage to clients. There is no job too big or too small that they can't tackle! The Sue Smith Team appreciates our partnership and referrals!

Contact Joe Jenkins, 703-624-1504 and [email protected] for a moving estimate for your next move!

08/19/2024

It's Monday -- Let's Talk Money!!

I have encountered many clients and friends who need to access quick cash for a personal emergency, pay off bills or purchase real estate. There are numerous avenues to obtain "quick cash", however, it is important to understand the implications in borrowing money or withdrawing from retirement accounts. See below from Money Guru, Suze Orman.

"Making an “early” withdrawal from a retirement account is typically a costly decision, as the government tacks on a 10% penalty for early withdrawals made from traditional IRAs and 401(k)s before the account owner is age 59 ½. That’s in addition to the income tax due on withdrawals from traditional retirement accounts. (Note, if you leave a job and are at least 55 you can make withdrawals from your 401(k) without being hit with the 10% early withdrawal penalty. That said, I am not endorsing tapping retirement savings at such a young age.)

Federal rules now have made it less costly to take a modest early withdrawal for any emergency, without having to pay the 10% early withdrawal penalty.

Before I get into the nitty gritty of the new rules, I want to be on the record that it is my sincere hope that you never need to touch your IRA or 401(k) savings before you are retired. I realize life happens, creating unanticipated costs, or periods where your income is lower. Understood. But that is why I am such a (loving) nag about building up an emergency savings fund. The new rules limit penalty-free withdrawals to $1,000 a year. I want you to eventually have far more than $1,000 in your emergency savings fund, but if you’ve yet to get started, I think $1,000 is a terrific savings goal to set for yourself. Once you have the $1,000 in your savings account, you won’t need to tap your retirement savings if an emergency expense does arise. And leaving your money growing in your retirement accounts should always be your goal.
Okay, but as I said, life can sometimes be messy. So let’s walk the rules on how this works:

You can withdraw $1,000 a year. Regardless of your age you will not owe a 10% early withdrawal penalty fee.

You owe income tax on your withdrawal from a traditional retirement account. All withdrawals from traditional accounts are subject to income tax. The only change is that the new regulation waives the 10% penalty fee for a qualifying early withdrawal.
It’s not hard to qualify. You will need to submit written notice that the withdrawal is indeed for an emergency, but the IRS has just clarified that it has a very broad definition of what qualifies as an emergency. You can with withdraw up to $1,000 “for purposes of meeting unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses.”

You are expected to repay the money into your retirement account within three years. If you don’t repay the money (or make new contributions that are at least equal to the amount you withdrew) you will not be permitted to make additional annual $1,000 penalty-free withdrawals.

The balance must remain above $1,000. Your $1,000 annual limit assumes you will still have at least $1,000 remaining in the retirement account.

Again, it is my hope that every household can build their own personal emergency savings fund so they never have to tap retirement savings for a small/moderate emergency expense.

But I also want you to rest a little easier, that if you do find yourself in a financial bind, you may be able to borrow money from your own retirement account, without a costly 10% early withdrawal penalty."

08/18/2024

We're Ready * We're Set * Let's Go!

You Are Invited to Today's Open House, Sunday, August 18, 2024 // 12-2pm

New Listing in the Community of Exeter, Town of Leesburg, by The Sue Smith Team

Impress your Family & Friends!

227 Whitney Pl NE
Leesburg, VA 20176
$940,000

4 Bedrooms
3.5 Baths
3 Finished Levels
Updated Lighting
Updated Flooring
Updated Kitchen & Baths
Custom Deck, Gazebo, Stone Patio
Fenced Rear, Private Yard
Community Amenities
Walk to the Town of Leesburg
Walk to Ida Lee Recreation Center
Walk to Morven Park

Proudly Presented By
Sue Smith
Compass
703.928.7860
[email protected]

hashtag hashtag

08/18/2024

We're Ready * We're Set * Let's Go!

You Are Invited to Today's Open House, Sunday, August 18, 2024 // 12-2pm

New Listing in the Community of Exeter, Town of Leesburg, by The Sue Smith Team

Impress your Family & Friends!

227 Whitney Pl NE
Leesburg, VA 20176
$940,000

4 Bedrooms
3.5 Baths
3 Finished Levels
Updated Lighting
Updated Flooring
Updated Kitchen & Baths
Custom Deck, Gazebo, Stone Patio
Fenced Rear, Private Yard
Community Amenities
Walk to the Town of Leesburg
Walk to Ida Lee Recreation Center
Walk to Morven Park

Proudly Presented By
Sue Smith
Compass
703.928.7860
[email protected]

hashtag hashtag

08/17/2024

We're Ready * We're Set * Let's Go!
Open House, Sunday, August 18, 2024 // 12-2pm

New Listing in the Community of Exeter, Town of Leesburg, by The Sue Smith Team

Impress your Family & Friends!

227 Whitney Pl NE
Leesburg, VA 20176
$940,000

4 Bedrooms
3.5 Baths
3 Finished Levels
Updated Lighting
Updated Flooring
Updated Kitchen & Baths
Custom Deck, Gazebo, Stone Patio
Fenced Rear, Private Yard
Community Amenities
Walk to the Town of Leesburg
Walk to Ida Lee Recreation Center
Walk to Morven Park

Proudly Presented By
Sue Smith
Compass
703.928.7860
[email protected]

hashtag hashtag hashtag

08/17/2024

Upcoming Open House

08/16/2024

New Listing in Shenandoah Retreat, Bluemont, VA by The Sue Smith Team

622 Timber Lane
Bluemont, VA 20135
$425,000

3 Bedrooms
2 Baths
Main Living Level
Surrounded by Nature
Renovated Kitchen, Baths, Flooring & More
Walls of Windows
High Speed Internet
Close to Cool Springs Nature Center
Close to Shenandoah River

Proudly Presented By

Sue Smith
Compass
703.928.7860
[email protected]

08/16/2024

New Listing in the Community of Exeter, Town of Leesburg, by The Sue Smith Team

227 Whitney Pl NE
Leesburg, VA 20176
$940,000

4 Bedrooms
3.5 Baths
3 Finished Levels
Updated Lighting
Updated Flooring
Updated Kitchen & Baths
Custom Deck, Gazebo, Stone Patio
Fenced Rear Yard
Community Amenities
Walk to the Town of Leesburg
Private Rear Yard
Impress your friends!

Proudly Presented By

Sue Smith
Compass
703.928.7860
[email protected]

08/16/2024

New on the Market

08/16/2024

New on the Market

08/13/2024

The True Essence of Winning

What does it truly mean to be a winner at the Olympics? It’s not just about crossing the finish line first or scoring the most points. Being a winner means showing grace in victory and humility in defeat. It means supporting your fellow competitors, recognizing their efforts, and understanding that the Olympic Games are about more than just individual glory—they are about unity, sportsmanship, and the collective celebration of human achievement.

Congratulations to all of the athletes, families, coaches and trainers for your years of dedication and commitment to achieve your dreams!

08/12/2024

Money Monday!

How the Latest IRA RMD Rule Changes Could Impact Your Retirement

August 12, 2024

We finally have definitive rules from the IRS on how IRA beneficiaries must handle required minimum distributions (RMD).
As I have previously explained, the rules for IRAs that were inherited in 2020 or later, now require that beneficiaries other than a spouse must typically withdraw all that money within 10 years after the death of the IRA owner. For beneficiaries of traditional IRAs, this means that tax must be paid as the money is withdrawn. (Even if you inherit a Roth account, the same 10-year rule applies, which means the money is no longer inside a tax-advantaged account.)

This was a big tax-law change as the old rules allowed the beneficiary to take RMDs based on their own life expectancy, rather than requiring the account be emptied within 10 years.
What hasn’t been clear since the law went into effect in 2020 is whether the new rule also requires the person who inherits the IRA to also make annual RMDs until they completely empty the account.

It’s now clear: Beginning in 2025 anyone who has inherited an IRA in 2020 or later (again, this doesn’t apply to surviving spouses) from someone who was already taking their RMDs from the account, must make annual RMDs from the inherited account during the 10 year period. To be clear, you can withdraw the entire amount immediately. But any year within the 10-year window where there is still money in the account, you must take an RMD withdrawal.
I want to be clear, this RMD requirement only applies if you inherited an account from someone who was already taking RMDs. If you inherit an IRA from an owner who wasn’t yet subject to RMDs, then you don’t have an annual RMD requirement, but you still must empty the account within the 10-year window.
Some good news for those of you subject to the new RMD rule: The IRS is not going to require retroactive RMD withdrawals for RMDs for the 2020, 2021, 2022, and 2023 tax years, for inherited IRA owners who inherited the account since the 2020 rule went into effect. And the IRS is also not insisting on RMD withdrawals for the 2024 tax year. The new annual RMD rule only kicks in beginning in 2025. But just remember: Your 10-year window is based on the year you inherited the account; so if you inherited an account in 2021 that is subject to the new rules, you only have until 2031 to empty the account (if you haven’t already).

Okay, now on to some tax strategy talk. If you have an inherited IRA based on these new rules, I want you to think carefully about how to minimize your tax bill. If you inherited a large traditional IRA, be careful waiting to take it all out in one big lump sum.

Withdrawals from traditional IRAs are taxed as ordinary income. If you wait until year 10 and have to withdraw all the money, there’s a good chance you could bump your taxable income into a higher tax rate for the year. Making smaller withdrawals over multiple years could be a better tax move. Or if you expect your income to be lower in a coming year, that might be a good time to take a large distribution from your inherited IRA. A trusted tax pro can help you run through scenarios.

And then there’s tax policy to keep in mind. Our current income tax rates are near historic lows. However, the 2017 tax legislation that put today’s rates in action is scheduled to expire after 2025.

Congress must decide whether to extend the current rates beginning for the 2026 tax year or change them. And you and I know that depends on how things shake out in Washington. We could see rates stay the same, go higher, or go lower. There’s no way to know for sure right now. But if you were thinking you would wait a few more years to cash out your IRA, but are also concerned that rates might move higher beginning in 2026, then you might consider making withdrawals from your inherited IRA this year and next to reduce your balance in 2026. Or you can cash it all out before 2026. The key is to consult a tax pro to make sure you don’t push your tax bill into a higher tax bracket.

08/11/2024

Coming Soon in Leesburg By The Sue Smith Team

Listing Launch on Friday, August 16, 2024

227 Whitney Place NE
Leesburg, VA 20176
$940,000

Desirable Community of Exeter

Retreat to your own personal Paradise!
Luxury, Updated Colonial
4 Bedrooms
3.5 Baths
3 Finished Levels
2 Car Garage
Updated Kitchen, Baths, Flooring
Custom Deck, Gazebo & Fenced Rear Yard
Open and Bright Floor Plan
Walk To The Town of Leesburg & Ida Lee Community

08/11/2024

Stop By Our Open House Today in The Townes of Vanderbilt by The Sue Smith Team

Sunday, August 11, 2024 // 12:30-2pm

848 Vanderbilt Ter SE
Leesburg, VA 20175
$525,000

Brick Front
One Car Garage Town Home
Fenced Rear Yard
Patio, Deck
3 Bedrooms
2.5 Baths
3 Finished Levels
Updated Kitchen & Baths
Walk to the Town of Leesburg
Easy Access to W&OD Trail

Open House Presented by:

Bryan Smith, Realtor
571-239-1719
[email protected]

08/10/2024

Upcoming Open House

08/09/2024

New on the Market

08/09/2024

New Listing in the Town of Leesburg by The Sue Smith Team

848 Vanderbilt Ter SE
Leesburg, VA 20175
$525,000

3 Bedrooms
2.5 Baths
3 Finished Levels
Brick Front
Garage
Fenced Rear Yard
Deck, Custom Patio
Pristine!

Contact The Sue Smith Team and let us show you how to make this home your home!

Presented by
Sue Smith
Compass
703.928.7860
[email protected]

08/09/2024

New Listing in the Town of Leesburg by The Sue Smith Team

848 Vanderbilt Ter SE
Leesburg, VA 20175
$525,000

3 Bedrooms
2.5 Baths
3 Finished Levels
Brick Front
Garage
Fenced Rear Yard
Deck, Custom Patio
Pristine!

Contact The Sue Smith Team and let us show you how to make this home your home!

08/07/2024

Experience our Newest Listing in the Town of Leesburg by The Sue Smith Team

848 Vanderbilt Ter SE
Leesburg, VA 20175
$525,000

Home with Heran

08/06/2024

Sold By Sue in Falls Church!

A Home With Heart ❤️

Congratulations to the Happy Sellers and Happy Buyers of this amazing home in Falls Church, VA.

What truly set this home apart is the intangible quality of love that permeates every corner. The former owners poured their hearts into maintaining and enhancing this residence, ensuring it remains a beloved haven for future generations and the new buyers.

Their commitment to creating a welcoming and nurturing environment is evident in every detail, making this home a rare and precious find.

We are thrilled for connecting this home with a new buyer!

Thank you to Krissy Smith Shellenberger who were all instrumental in a successful sale.

08/06/2024

Just Sold!

08/05/2024

How many cars do you own? How many cars do you need?

It's Money Monday Suze Orman

https://www.linkedin.com/pulse/why-car-insurance-premiums-rising-how-manage-them-suze-orman-htdwc/