Aug 4, 2017
Joel talks about using 401(k)’s, the strategies you should be
thinking about when it comes to your retirement accounts and the
seven point checklist.
Main Questions Asked:
What is the seven point 401(k) checklist?
Key Lessons Learned:
The Seven Point 401(k) Checklist
- Ignoring your 401(k) or IRA can cost you a small fortune.
- You should know what you own, go deeper than just the name of
the mutual fund. Most people pick their funds based off the last
3-5 years of performance and choose their funds incorrectly.
- The market works in cycles, the funds that have done well may
be about to go down and the ones that have performed poorly are
often the ones about to go up.
- The average mutual fund investor lagged the fund’s performance
that they own by 4-5% because they are constantly moving in and out
of the fund.
- You should understand the fees involved in running your 401(k).
Most people don’t know that certain fees can actually reduce your
overall return by up to 4% which can really add up in the long
- You need to understand your risk tolerance and the risks you
are taking, even when the market is on the way up.
- Most people are taking more risk than they think they are, most
people think they can tolerate more risk than they can. You should
assume you are taking more risk than you should. Many people are
complacent and a market correction is coming.
- Saving for retirement alone isn’t enough, you have to have a
plan and review it regularly.
- Have a withdrawal strategy that helps you avoid the retirement
tax trap. Many people should spend their retirement money first
depending on their situation, have a retirement professional work
with you to create a withdrawal strategy that is right for
- A ROTH conversion may be right for you but it will depend on
the tax implications and your family’s tax implications.
- It may make sense to consolidate your 401(k) accounts but it
will depend on the accounts themselves. Simplifying and
consolidating your accounts can give you a clearer picture as what
you have available to you for retirement.
- You have to understand your options when it comes to passing on
your accounts to the ones you love. You may be creating a tax time
bomb for your heirs if you don’t plan specifically to pass it on as
efficiently as possible.
- Retirement today is tricky business and you will face
challenges that other generations didn’t have to deal with. Saving
alone is not enough, you need to have a plan.
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!