401k rollover
- Thread starter Zigga
- Start date
FamilyMan
Very Active Member
- Messages
- 1,525
Make sure you do a direct rollover into an IRA or you will end up paying taxes and fees to the government. You should never even see a check, just a statement from the 401k saying it was sent and a statement from the IRA provider saying it was received and invested.
If you are a long way from retirement I would suggest a stock mutual fund (perhaps diversify amoung several) under the IRA. If your are approaching retirement then perhaps put some of it in a bond fund (less volital if you are going to need the money soon, but less of a return over the long run which is why I make the destinction between retiring soon or not). If you are on the very verge of retiring then more havily bond oriented.
There are many good mutual fund companies that you can open an IRA with. Be carfull of loads and fees, they can eat away at your profits pretty quickly. Consider an index fund such as one of the Vanguard funds (S&P 500 index, etc.). That particular fund has no loads and extreemly low annual fees but has returns that beat more than half of the managed funds out there.
Good luck and great gains.
Mark
If you are a long way from retirement I would suggest a stock mutual fund (perhaps diversify amoung several) under the IRA. If your are approaching retirement then perhaps put some of it in a bond fund (less volital if you are going to need the money soon, but less of a return over the long run which is why I make the destinction between retiring soon or not). If you are on the very verge of retiring then more havily bond oriented.
There are many good mutual fund companies that you can open an IRA with. Be carfull of loads and fees, they can eat away at your profits pretty quickly. Consider an index fund such as one of the Vanguard funds (S&P 500 index, etc.). That particular fund has no loads and extreemly low annual fees but has returns that beat more than half of the managed funds out there.
Good luck and great gains.
Mark
T
Trophymossback
Guest
I have the TROPHYMOSSBACK big old man hunter's fund that I would recommend. It always seems to be a little short this time of year when the applications are rolling out!
HAHA!
The advice given by the fellows ahead of me is good advice. Always be careful!
Especially of old man's hunting funds
TM
HAHA!
The advice given by the fellows ahead of me is good advice. Always be careful!
Especially of old man's hunting funds
TM
T
turdherder
Guest
I'm not a certified financial consultant but I am about to finish my degree in business/finance the above recommendations are pretty good,
1. do a direct rollover-to avoid paying ant taxes or penalties
2. use a mutual fund or funds
3. use a no load fund like Janus, Vanguard or Fidelity (my personal choice).
4. stay away from annuities or so called experts.
5. Its easy enough to do this on your own, a little forethought and planning now makes the future a lot easier.
If you need a hand PM me.
Dan
1. do a direct rollover-to avoid paying ant taxes or penalties
2. use a mutual fund or funds
3. use a no load fund like Janus, Vanguard or Fidelity (my personal choice).
4. stay away from annuities or so called experts.
5. Its easy enough to do this on your own, a little forethought and planning now makes the future a lot easier.
If you need a hand PM me.
Dan
Founder
Founder Since 1999
- Messages
- 11,482
I'm no financial expert but;
If you're in a low tax bracket now, you might want to look into converting it to a ROTH IRA versus the Traditional IRA. You wouldn't have to pay a penalty, but you would have to pay taxes on the money. If you are in a lower tax bracket, or have plenty of write-offs, etc. it might be worth it. Heck, might be worth it anyway!
I've been putting money into the Traditional IRA, but I think from here on out I'm doing the ROTH IRA. The ROTH isn't taxed when you withdraw it, so it may cost you a little now but will save more later. ???? That's my thinking. It is hard for me to pay taxes on money I won't see for 25 years, but....
Brian Latturner
MonsterMuleys.com
If you're in a low tax bracket now, you might want to look into converting it to a ROTH IRA versus the Traditional IRA. You wouldn't have to pay a penalty, but you would have to pay taxes on the money. If you are in a lower tax bracket, or have plenty of write-offs, etc. it might be worth it. Heck, might be worth it anyway!
I've been putting money into the Traditional IRA, but I think from here on out I'm doing the ROTH IRA. The ROTH isn't taxed when you withdraw it, so it may cost you a little now but will save more later. ???? That's my thinking. It is hard for me to pay taxes on money I won't see for 25 years, but....
Brian Latturner
MonsterMuleys.com
B
BOBCATBEST
Guest
Ziggy,
My advice.....
1- Do not ask for financial advice on a hunting website.
2- Just hope a Republican is voted in for Pres. come election
time; I am sure it will double in less than 2 years!!!
The only bobcat who should have been a Financial Planner!!!!
My advice.....
1- Do not ask for financial advice on a hunting website.
2- Just hope a Republican is voted in for Pres. come election
time; I am sure it will double in less than 2 years!!!
The only bobcat who should have been a Financial Planner!!!!
H
huntsonora
Guest
>Ziggy,
>
>My advice.....
>
>1- Do not ask for financial
>advice on a hunting website.
>
>
>2- Just hope a Republican is
>voted in for Pres. come
>election
>time; I am sure it will
>double in less than 2
>years!!!
>
>The only bobcat who should have
>been a Financial Planner!!!!
X2
Drum
>
>My advice.....
>
>1- Do not ask for financial
>advice on a hunting website.
>
>
>2- Just hope a Republican is
>voted in for Pres. come
>election
>time; I am sure it will
>double in less than 2
>years!!!
>
>The only bobcat who should have
>been a Financial Planner!!!!
X2
Drum
D
D13er
Guest
donate it to Obama '08
JB
JB
B
Bev42
Guest
I'm a series 7 licensed Financial Consultant and have been for 5 years. It's always interesting to hear the advice of others.
Before making any decisions, you need to answer the following questions:
1-When, if ever, will I need the money?
2-What tax bracket am I in now, and what tax bracket will I be in when I retire?
3-Do I think taxes will go up or down in the future?
4-Do I want a guarantee with my money (meaning that no matter what happens to the financial markets, you'll at least get back what you put in), or do I want to risk it all.
I would definetly use a licensed, full-time financial advisor, and it shouldn't cost extra to do so. Mutual Fund companies have a certain amount they pay an Advisor to bring clients to them, if no advisor is used, the company retains the profits.
The cost to the client is the same either way.
If you do roll the money over, roll it into an IRA/Annuity.
Someone earlier said not to use an annuity, that's only because they have no idea what an annuity is or how it works. I'm sure their Professor told them that annuities were bad and they accepted it as gospel.
Annuities offer safety, security, as much or as little risk as you want, plus you have numerous ways of getting the money out that you don't have with a Traditional IRA.
P.S. Founder's comments were right on. Let's say the amount you want to rollover is $5000. You project that in 15 years your money will have grown to $15,000. With an IRA, you will then owe tax on the full $15,000. If you decided to put the money in a Roth IRA, you would owe tax on $5000 next tax year, and then the projected $15,000 would all come out tax free.
So which is the best alternative? The answer is...it depends. However, a Financial Advisor that you trust can help you find what will work for your specific situation.
Before making any decisions, you need to answer the following questions:
1-When, if ever, will I need the money?
2-What tax bracket am I in now, and what tax bracket will I be in when I retire?
3-Do I think taxes will go up or down in the future?
4-Do I want a guarantee with my money (meaning that no matter what happens to the financial markets, you'll at least get back what you put in), or do I want to risk it all.
I would definetly use a licensed, full-time financial advisor, and it shouldn't cost extra to do so. Mutual Fund companies have a certain amount they pay an Advisor to bring clients to them, if no advisor is used, the company retains the profits.
The cost to the client is the same either way.
If you do roll the money over, roll it into an IRA/Annuity.
Someone earlier said not to use an annuity, that's only because they have no idea what an annuity is or how it works. I'm sure their Professor told them that annuities were bad and they accepted it as gospel.
Annuities offer safety, security, as much or as little risk as you want, plus you have numerous ways of getting the money out that you don't have with a Traditional IRA.
P.S. Founder's comments were right on. Let's say the amount you want to rollover is $5000. You project that in 15 years your money will have grown to $15,000. With an IRA, you will then owe tax on the full $15,000. If you decided to put the money in a Roth IRA, you would owe tax on $5000 next tax year, and then the projected $15,000 would all come out tax free.
So which is the best alternative? The answer is...it depends. However, a Financial Advisor that you trust can help you find what will work for your specific situation.
R
RACKMASTER
Guest
cash out and start a quad repair shop... between you and BESSY You could buy the WWF(world wildlife fund)and turn it into a hunting club....
rm
rm
I love you guys. Really!
Bobcatbest,
If another Republican takes over at election time then I will spend any profits on even higher gas prices, higher energy costs, I'll pay even more health insurance for less benefits, we'll have a bigger defecit (who will pay for that?) etc.
I do like the hunting club idea.
I will pm some of you. This site is amazing because no matter what topic there is there is always a real pro willing to help.
Thanks
Bobcatbest,
If another Republican takes over at election time then I will spend any profits on even higher gas prices, higher energy costs, I'll pay even more health insurance for less benefits, we'll have a bigger defecit (who will pay for that?) etc.
I do like the hunting club idea.
I will pm some of you. This site is amazing because no matter what topic there is there is always a real pro willing to help.
Thanks
