Comments for 401K Financial Planning http://www.401k-guide.net Retirement Panning Thu, 09 Feb 2012 18:26:53 +0000 http://wordpress.org/?v=2.3.3 Comment on What should I do with my 401K money when i leave my job? by AllCourt http://www.401k-guide.net/archives/1748#comment-23124 AllCourt Sun, 19 Feb 2012 03:30:47 +0000 http://www.401k-guide.net/archives/1748#comment-23124 Roll it over into a Roth IRA Roll it over into a Roth IRA

]]> Comment on What should I do with my 401K money when i leave my job? by Lisa A http://www.401k-guide.net/archives/1748#comment-23123 Lisa A Fri, 17 Feb 2012 11:00:13 +0000 http://www.401k-guide.net/archives/1748#comment-23123 You may have other investments for retirement, but you never have enough. Retirement money is for retirement. Don't use it for anything besides retirement. My personal recommendation is that you roll the 401(k) over into an IRA. I feel that Vanguard is the best, because they have the lowest fees. There are plenty of good brokers out there though. You should also look in to Fidelity. I wouldn't keep your money in your old employer's 401(k) because of the limited fund choices offered, and because the custodian doesn't have you best interests in mind. I also wouldn't roll it over into your new employer's 401(k) again because of the limited choices, and the fact that your money is held hostage until you leave your next job. Now, as far as your credit card goes, in order to pay it off, you need to cut your spending. Use the excess to pay it off. Once it is paid off, don't raise your spending again. Keep your spending at the same level, but put the extra into a taxable bank account (separate from your retirement funds.) Call this your emergency fund. That way, when something unexpected happens, and you need money, you can get it out of your bank account, and you don't have to run up credit card bils again. You may have other investments for retirement, but you never have enough. Retirement money is for retirement. Don’t use it for anything besides retirement.

My personal recommendation is that you roll the 401(k) over into an IRA. I feel that Vanguard is the best, because they have the lowest fees. There are plenty of good brokers out there though. You should also look in to Fidelity.

I wouldn’t keep your money in your old employer’s 401(k) because of the limited fund choices offered, and because the custodian doesn’t have you best interests in mind. I also wouldn’t roll it over into your new employer’s 401(k) again because of the limited choices, and the fact that your money is held hostage until you leave your next job.

Now, as far as your credit card goes, in order to pay it off, you need to cut your spending. Use the excess to pay it off. Once it is paid off, don’t raise your spending again. Keep your spending at the same level, but put the extra into a taxable bank account (separate from your retirement funds.) Call this your emergency fund. That way, when something unexpected happens, and you need money, you can get it out of your bank account, and you don’t have to run up credit card bils again.

]]> Comment on What should I do with my 401K money when i leave my job? by heybulldog http://www.401k-guide.net/archives/1748#comment-23122 heybulldog Mon, 13 Feb 2012 23:38:26 +0000 http://www.401k-guide.net/archives/1748#comment-23122 roll it into a Roth IRA. Knuckle down with a written budget and a second job and pile cash on the debt. Get the debt and the credit cards out of your life. All they are good for is getting into debt with. roll it into a Roth IRA.

Knuckle down with a written budget and a second job and pile cash on the debt. Get the debt and the credit cards out of your life. All they are good for is getting into debt with.

]]> Comment on What should I do with my 401K money when i leave my job? by patty12374 http://www.401k-guide.net/archives/1748#comment-23121 patty12374 Mon, 13 Feb 2012 13:03:37 +0000 http://www.401k-guide.net/archives/1748#comment-23121 I would say you have 3 choices: roll it over to your other 401k account, if allowed keep it where it is, or cash it out. The last will cost you most of your savings plus you have to report it on your taxes. Good luck. I would say you have 3 choices: roll it over to your other 401k account, if allowed keep it where it is, or cash it out. The last will cost you most of your savings plus you have to report it on your taxes. Good luck.

]]> Comment on What should I do with my 401K money when i leave my job? by Kesha S http://www.401k-guide.net/archives/1748#comment-23120 Kesha S Sat, 11 Feb 2012 10:37:55 +0000 http://www.401k-guide.net/archives/1748#comment-23120 I would take a long quiet vacation!!!!!!!!!oh Gosh how i would love a vacation.....but if you have more srious business to handle make sure you take care of it first....If you have enough left over go on vacation:) I would take a long quiet vacation!!!!!!!!!oh Gosh how i would love a vacation…..but if you have more srious business to handle make sure you take care of it first….If you have enough left over go on vacation:)

]]> Comment on on disablity can I invest my 401k in a business? by TheSchwaz http://www.401k-guide.net/archives/1734#comment-23080 TheSchwaz Wed, 25 Jan 2012 18:42:58 +0000 http://www.401k-guide.net/archives/1734#comment-23080 There is a slight chance that this may be possible. First you will need to have a self directing plan. A 401k is a qualified plan and most likely was not set up as self directed. You could roll over into a traditional ira that is self directed and invest in alternative investments, such as business entities. Even if you roll over into this type of plan, you may still run into issues with your daughters business. She is considered a disqualified individual and the irs prohibits investing directly with a disqualified person. The exception in business entities is that a disqualified individual is allowed, but cannot have a combined interest in the business exceeding 50 percent. This means that she needs to have other partners involved with the business that are not considered disqualified individuals to yourself (any person of your lineal decent I.e. Children, grandchildren, your parents or grandparents would be considered disqualified). So in short, if your daughter has three other business partners and they each own 25 percent of the business, you would be able to buy into a percent of the business yourself, not to exceed 50 percent including your daughters interest (this would take buying out one of the partners or percentages of their shares). So while the chances may seem slim, it may be possible but it depends on the particulars of your specific situation. This info is simply my opinion and interpretation and not to be taken as professional investment advice. :) There is a slight chance that this may be possible. First you will need to have a self directing plan. A 401k is a qualified plan and most likely was not set up as self directed. You could roll over into a traditional ira that is self directed and invest in alternative investments, such as business entities. Even if you roll over into this type of plan, you may still run into issues with your daughters business. She is considered a disqualified individual and the irs prohibits investing directly with a disqualified person. The exception in business entities is that a disqualified individual is allowed, but cannot have a combined interest in the business exceeding 50 percent. This means that she needs to have other partners involved with the business that are not considered disqualified individuals to yourself (any person of your lineal decent I.e. Children, grandchildren, your parents or grandparents would be considered disqualified). So in short, if your daughter has three other business partners and they each own 25 percent of the business, you would be able to buy into a percent of the business yourself, not to exceed 50 percent including your daughters interest (this would take buying out one of the partners or percentages of their shares). So while the chances may seem slim, it may be possible but it depends on the particulars of your specific situation. This info is simply my opinion and interpretation and not to be taken as professional investment advice. :)

]]> Comment on on disablity can I invest my 401k in a business? by Woof http://www.401k-guide.net/archives/1734#comment-23079 Woof Wed, 25 Jan 2012 08:20:22 +0000 http://www.401k-guide.net/archives/1734#comment-23079 No. Your investment choices are limited to those offered by the specific 401(k) plan. No. Your investment choices are limited to those offered by the specific 401(k) plan.

]]> Comment on How fast can I get a divorce in Texas with no children but with 401K ? by Ouragon http://www.401k-guide.net/archives/1749#comment-23125 Ouragon Wed, 25 Jan 2012 03:35:49 +0000 http://www.401k-guide.net/archives/1749#comment-23125 Texas has a six month waiting period from the filing date, so you could file. Texas has a six month waiting period from the filing date, so you could file.

]]> Comment on on disablity can I invest my 401k in a business? by MVD34 http://www.401k-guide.net/archives/1734#comment-23078 MVD34 Mon, 23 Jan 2012 09:20:41 +0000 http://www.401k-guide.net/archives/1734#comment-23078 Nope.. not allowed. (a) A 401k is qualified plan. (b) For an IRA your daughter is a disqualified person. Nope.. not allowed.

(a) A 401k is qualified plan.

(b) For an IRA your daughter is a disqualified person.

]]> Comment on How do you roll over 401k funds into a Roth IRA when you switch jobs? by digdowndeepnseattle http://www.401k-guide.net/archives/1723#comment-23047 digdowndeepnseattle Sat, 07 Jan 2012 14:09:29 +0000 http://www.401k-guide.net/archives/1723#comment-23047 No you can't move your money from a 401k into a ROTH IRA without penalty. You'll have to take a distribution (which triggers the 10% penalty) and then deposit the $800 (remember, they're going to withhold 20%) into the ROTH. Come tax time you'll owe that 10% penalty....which makes what you are attempting to do a losing proposition. Better to roll it over into a traditional ira, open up a seperate ROTH IRA and begin making monthly contributions to the ROTH No you can’t move your money from a 401k into a ROTH IRA without penalty. You’ll have to take a distribution (which triggers the 10% penalty) and then deposit the $800 (remember, they’re going to withhold 20%) into the ROTH. Come tax time you’ll owe that 10% penalty….which makes what you are attempting to do a losing proposition. Better to roll it over into a traditional ira, open up a seperate ROTH IRA and begin making monthly contributions to the ROTH

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