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Category Archives: 401k

5 Myths About 401(k) Rollovers That Could Wreck Your Retirement

One of the most critical financial events that you will one day experience is your 401(k) rollover.

Why do I say it is “critical,” I mean that seems a bit dramatic doesn’t it?

Well, not exactly.

When you rollover your 401(k) into an IRA you want to make sure you don’t make any mistakes. If you do something incorrectly, it could cost you big in loss of tax deferral and potentially fees depending on your age.

Here’s what I mean, if you cash out your 401(k) it will all count as income for you in that tax year. This could push you into a higher marginal tax bracket.

Or if you have your 401(k) check made out to you with the intentions of putting it into an IRA, you could still be in trouble. You have 60 days to deposit the funds into an IRA. If you miss that deadline it will count as a distribution, with any taxes or fees that come with it.

And if you are under age 55 you will almost certainly pay the 10% penalty to the IRS for early withdrawal. If you are between 55 and 59 ½ you may not have to pay the 10% penalty depending on whether the 401(k) you withdrew from was at an employer from whom you quit working after the age of 55.

The details can get a little complicated.

So here are 5 myths about 401(k) rollovers. If you think these are true you could end up making a big mistake with your retirement savings.Continue Reading

Four 401(k) Rollover Options… Which Will You Choose?

Eventually we all get to the point where we are no longer going to continue working for our employer. This may mean that you are going to switch jobs. Or it may mean that you are going to retire.

When either of these happen you must look at your 401(k) rollover options and decide which is best for you.

Think of your 401(k) as a delicate egg. When you move this “delicate egg” to a new place, you don’t want to break it.

And it’s easy to break it. If you choose the wrong 401(k) rollover options, you could inadvertently lose the tax deferral on your 401(k) funds. This could leave you with a big tax bill, and a reduced retirement fund.

Let’s be careful with that egg.

The 4 Main 401(k) Rollover Options  

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How Big Should My 401(k) Be To Retire

One of the most important questions you will have to answer before you retire is:

“How big should my 401(k) be to retire?”

And the reason I say “401(k)” is because that is the primary retirement savings vehicle for most people. But if you have some other type of accounts (like a 457 or 403(b) or TSP) that are your retirement savings, then it’s really the same thing.

So if you want to maintain your current lifestyle in retirement and not worry about running out of money, then you need to make sure you have a ballpark idea of how much savings you will need before retiring.Continue Reading

3 Retirement Income Strategies For Your IRA

Your IRA will play a big role in your retirement.

And if you don’t have an IRA… well I bet you have a 401(k). And when you retire you will probably roll that 401(k) into… you guessed it, an IRA.

One of the main problems that you will face when you retire is figuring out how to replace your income. Since your paycheck will no longer be coming in, you’ve got to come up with something to pay the bills. Your IRA will play a role in addressing this challenge.

And one of the biggest challenges you will face is making sure that you don’t run out of money in retirement.

And let’s be honest about this. It’s not that you will necessarily run out of money. The real issue is that if your nest egg starts to dwindle you will start cutting back on your lifestyle in retirement.Continue Reading

5 Pieces of Bad Retirement Advice

Bad AdviceBad advice is everywhere. And it is no different when it comes to the topic of retirement planning. There is bad retirement advice out there.

Everyone wants to share their opinions on how other people should live, believe, and think. The ironic thing is people that don’t have much of a mind to share are usually the ones that want to share a piece of their mind with you.

But the most sneaky form of bad advice is the type that actually sounds pretty good on the surface. And sometimes advice can be good, but it may not be right for your specific situation.Continue Reading

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Investment Advisory Services offered through Retirement Wealth Advisors, (RWA) a Registered Investment Advisor.  Tri-State Financial Group, and Tri-State Insurance & Financial Services, and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

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