Nov 15, 2019
Dealing with a divorce can be stressful enough on its own but having to make important financial decisions in the middle of the process is very difficult. If you or someone you know is in this position, make sure you think through your options when splitting assets, so you’ll avoid these common mistakes that people make. Plus, we’ll discuss procrastination excuses and get you jump-started on changing your retirement path.
Full Show Notes: https://johnsonbrunetti.com/?p=4359
0:31 – Previewing today’s show
1:19 – Email question: I’ve been told I should take my old 401k and roll it over to an IRA. Why is that?
1:35 – A rollover will give you more flexibility.
2:41 – The second reason is control. Here’s what that means.
3:43 – Let’s talk about some of the mistakes people make in divorce beginning with a story clients we’ve worked with recently.
5:22 – One mistake people make is assuming you should keep the house over retirement accounts.
6:19 – The next mistake is ignoring the tax implications of your choice.
7:05 – Joel provides an example of how two accounts with similar value aren’t going to be worth the same after taxes.
7:29 – Another mistake is taking the QDRO and rolling it immediately into an IRA.
9:13 – The other side of that mistake is dipping too much into that account because of that tax penalty waiver.
9:55 – Here’s the key takeaway to this discussion on divorce.
11:45 – Let’s talk through some of the reasons people have for procrastinating with their finances.
12:03 – Let’s first talk about what procrastination really is.
13:03 – First excuse: Everything will be fine. My parents never did much planning and everything was okay for them in retirement.
14:29 – Next excuse: I don’t know who to listen to!
16:17 – Third excuse: I’m too busy to deal with retirement planning.
18:02 – Email Question: My neighbor retired two years ago and decided he has to go back to work because money is tight. Now I’m worried the same thing will happen to me. How can I be sure?