Sep 1, 2017
Learn the best practices with 401(k) rollovers and what it means
for a financial advisor to specialize in working with retirees.
Main Questions Asked:
- What is the best time to take your social security
- How is tax planning different in retirement?
- How should we address long term care?
- What about moving in retirement?
- How should we deal with the death of a spouse?
- What does sequence of returns risk mean?
- What are the main benefits of taking your 401(k) and rolling it
into an IRA?
Key Lessons Learned:
- Most financial advice says to wait until you’re 70 before you
take Social Security because your benefit grows by 8% for every
year you wait.
- If you have money saved up for your retirement, this may be bad
- You shouldn’t take blanket advice, you must factor in your
unique life experience and situation into your decisions about your
- As an employee, you have very little control over how much
taxes you pay.
- You can control your taxes much more when you’re retired than
when you were working.
- Depending on your financial situation, it’s possible to defer
taxes to later in your retirement when you aren’t as active.
- It’s also important to manage your retirement income and taxes
so minimize the amount of Medicare payments you make.
Long Term Medical Care
- Most people think that Medicare will pay for long term care,
like nursing homes, which is not true.
- You need to protect your assets or buy insurance specifically
with long term care in mind.
- The heart of investment planning begins with a retirement
income plan that deals with bumps in the road in the future.
- There are many different implications of the death of a spouse,
you will often be losing income while also paying more in
- You don’t want to be worried about money at such a difficult
time in your life so you need to work with someone who can help you
plan for this situation.
Sequencing Your Returns
- It’s important to sequence the timing of your withdrawals from
your portfolio. If you get low rates of return in the first few
years of your retirement and your pulling money out, you’ll have to
scale your income downwards.
- You can’t just look at the average rate of return of a
- You need to work with someone who specializes in financial
retirement planning who can help you avoid these financial
- When it comes to the 401(k), the company is the client, not
Rolling over a 401(k) into an IRA will give you more flexibility
but it will depend on your unique financial situation.
- Working with the robo advisors is not necessarily bad, but they
won’t be able to give you the same level of customized advice that
a human financial advisor can give you.
- If you do the rollover correctly, you won’t pay anything in
taxes and you can end up saving hundreds of thousands of dollars
for your family.
- You should start with a financial plan that’s designed for your
specific situation before thinking about investments inside an
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!