Retirement accounts have multiple investment vehicles that can look a lot like Jay Leno’s garage. You can choose from hybrids (mutual funds), or classics (fixed accounts), sports cars (stocks) or utility vehicles (bonds). However, the most common retirement transportation is the 401(k), which is more like an Amtrak train. There are a lot of passengers heading in the same direction until it’s time to get off and choose a personal vehicle (an IRA) to get you to your final destination (retirement). When you leave a job you can choose to leave the 401(k) and “roll it over” into that personal vehicle that will carry you into retirement. In this episode of New Retirement Radio, Dennis Prout and Shea Petaja focus on six rollover options for your 401(k).
In this week’s show Dennis Prout and Shea Petaja review items from Ed Slott’s recent newsletter which provided 14 great tips for non-spouse beneficiaries. The first tip is “touch nothing”! Before you make a move, talk to an advisor to avoid expensive tax mistakes. More than likely, you are splitting the inherited account and the mandated deadlines are important to be aware of. Also, you will need to name a beneficiary to these accounts as well. Who knew there was so much to know!
For more than 30 years you've been programmed to "save, save, save" and invest wisely so that you can retire. When you retire you then have to learn how to "spend, spend, spend" wisely. It's hard to make "The Switch" from one mentality to the next. You lose freedom with income, but you gain freedom with time. It's a series of trade-offs that we talk about in this episode. How can you change your strategy and make little pivots to ease the shock (or excitement) of transition?
More than 800,000 Americans lose their spouses each year, and 700,000 of them are women, according to the U.S. Census Bureau. Because women generally outlive men, they spend an average of 14 years without a spouse. There are now more than 14 million widows and widowers, accounting for about one-quarter of those over 65. And yet, it's the topic most clients avoid simply because, "we don't want to think about it." Twenty-five percent of the population has found themselves in a difficult situation. If you haven't started the planning process for your personal finances and estate, listen to this episode and Dennis Prout and Shea Petaja can get you started.