Apr 27, 2018
Learn tips for retirement savings using a 401(k) savings plan
and how to avoid disasters, pain, and consequences of not planning
properly to navigate through difficult financial times.
Main Questions Asked:
- What can I do to get the most out of my retirement
- What can I do to successfully navigate through difficult
Key Lessons Learned:
Tips on Your 401(k)s
- Should I use free or low-cost advice from my company’s
401(k) advisor? The danger lies in who is giving the
advice. I would recommend getting advice from someone who knows
you, your financial situation, and who understands your family
- Are 401(k) loans a good idea or a bad idea?
It’s a bad idea. Just don’t do it. If you do the math, it doesn’t
make sense to take out a loan on your 401(k) because you end up
losing money and experience other opportunity costs.
- When does a 401(k) rollover makes sense?
Rolling a 401(k) over to an IRA gives you more flexibility and more
control. You can also get higher-quality advice from your own
personal financial advisor.
- When rolling over a 401(k) doesn’t make sense.
If you retire at age 56 and most of your savings is in a 401(k) and
you roll that money over into an IRA, you will have to wait until
age 59 ½ to withdraw it.
Ways You May Be Flirting with Disaster in Your Financial
- You have legal documents that are out of date.
The new tax laws have changed some requirements. If you don’t have
your documents in order, you could be paying unnecessary
- Not knowing you have a tax time-bomb that needs to be
defused. An overwhelming majority of your investments
could be in tax-deferred accounts. Be mindful! Taking money out
could potentially place you into a higher tax bracket.
- Having the classic 60/40 portfolio. The 60/40
portfolio is completely outdated. You need a plan that considers
all your individual life circumstances. Make sure that you are
bulletproof against a large drop in your portfolio.
Links to Resources Mentioned
Money Map Retirement Review
Get a FREE Copy of “The Ultimate
Thank you for listening!