If you have recently lost a job, or have changed a job, you may be wondering what to do with your 401(k) investments. Do you roll them over to your new employers 401(k) plan? Do you leave them in your old 401(k)? or Do you do a rollover to an IRA account? When making a decision, it's important to know the pros and cons of each option.
As you evaluate your retirement strategy and make 401k plan investment decisions you will need to consider your investment objectives, your comfort with risk, and each investments performance over time in order to make sound investment decisions. However, a real problem can arise if you are not considering the 401k fees and expenses. These fees and expenses are hidden factors that may disrupt the entire 401k and retirement planning process by reducing the amount of money you have at retirement.
When visiting with a financial planner that you are considering working with, treat the initial meeting as a mutual interview. The financial planner should ask you about your current financial situation, financial goals and your personality as it relates to investing. By getting to know your financial situation, the financial planner can begin to formulate an investment strategy that is specific to your needs. At the same time, you should be prepared to ask questions that will allow you to determine if you would feel comfortable working with this financial planner.
If you're married, a combination of trusts, often referred to as A/B, or A/B/Q trusts, may be useful for estate planning purposes. The combination of trusts can sometimes be used to minimize total estate tax for two spouses, and can provide non-taxed benefits as well.
Deciding when to begin receiving Social Security benefits is a major financial issue for anyone approaching retirement because the age at which you apply for benefits will affect the amount you'll receive. If you're married, deciding when to retire can be especially complicated because you and your spouse will need to plan together. Fortunately, there are a couple of strategies that are available to married couples that you can use to boost both your Social Security retirement income and income for your surviving spouse.
Over the past few years, mutual fund companies have flooded 401k Plans with Target-Date funds in an attempt to make portfolio selection easier for participants. They want to provide an “easier” option to retirement savings. For those that aren’t familiar with these investments, they are mutual funds designed to provide an “appropriate” asset allocation based on the date at which you expect to need access to your money. i.e. the day you retire.
This is probably the biggest question for people who feel they need assistance. You can come in contact with a Financial Advisor through a couple of methods:
This is a tough question, because it is very individualized. Our general belief at
RetirementTimeline.com is that, overall, people benefit from using a financial
advisor. However, that’s not to say that you will not achieve your goals without
one or that any advisor can help you.
Social Security Administration - July 2008
At Social Security, we’re often asked, “What is the best age to startreceiving retirement benefits?” The answer is that there is no one “best age” for everyone and, ultimately, it is your choice. You should make an informed decision about when to apply for benefits based on your individual and family circumstances. We hope the following information will help you understand how Social Security can fit into your retirement decision.