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Listen to Money Wisdom with Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® and gain key financial insights to help you make informed decisions for your future. Jake and Nick aim to provide clarity and guidance, addressing your questions and shining a light on the real financial challenges facing today’s retirees.
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  2. Tips on Your 401(k)’s

Tips on Your 401(k)’s

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 savings?
  • What can I do to successfully navigate through difficult financial times?

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 dynamic.
  • 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 Life

  • You have legal documents that are out of date.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 taxes.
  • 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 The 60/40 portfolio is completely outdated.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

1-800-757-0436

Get a FREE Copy of “The Ultimate 401(k) Guide”

Thank you for listening!