Jun 29, 2017
Joel Johnson on 401k rollovers and retirement planning
Joel tells you everything you need to know about 401k rollovers
and explains what it really means to specialize in retirement
Main Questions Asked:
- What do we have to think about when it comes to retirement
- How is tax planning different when you’re retired?
- How does long-term care factor into retirement plans?
- What are the financial implications of the death of a
- The sequence of returns risk, what does that mean?
- What are the main benefits of taking a 401k and turning it into
- Once in an IRA, how do we know what to invest in?
Key Lessons Learned:
- Timing when you take your social security is very important,
most sources say to wait until you’re 70.
- If you have a large sum saved up, it may make sense to take
social security benefits.
- Know the different nuances of social security and that blanket
statements won’t be appropriate for everyone.
- You have more control over the amount and when you pay taxes
when you’re retired.
- Tax planning can also affect your Medicare payments, it’s
important to understand where you’re taking your income to avoid
paying more than you should.
- Long term care like a nursing home is not covered by Medicare.
You have to self-pay and have insurance in place to protect your
- Housing and lifestyle will be an important decision to make
once you retire, seek out a retirement specialist to help you make
a good one.
- The death of a spouse can lead to paying higher taxes due to
the change in the filing status. You have to plan ahead for the
financial implications of the death of a spouse.
- If you get low rates of return on your retirement portfolio in
the early years, you may never be able to recover. You have to
sequence the order of the returns. Looking at the long-term market
rates of return don’t tell the whole story and can lead to very
- The main benefit of rolling a 401k into an IRA is
- You are not the client in a 401k, the company you work for is.
This means your best financial interest may not be served.
- An IRA is tailored to your investment needs.
- It’s important to get personalized advice when it comes to your
- If you do the rollover correctly into an IRA, there are no tax
- The investment plan should be designed around your financial
plan and your need for income.
Links To Resources Mentioned
Money Map Retirement Review 1-800-705-1232
Thank you for listening!