Best thing to do with old 401k money

Are you still looking for the best thing to do with your old 401k?

We already discussed options…

1. Keep paying costs and fees without knowing why…
2. Research what the costs and fees are for…
3. Move your money somewhere safe…

Need to read or review that article?
Go to: Smashing my old 401k mystery box

… and you know that old 401k money can be (1) left where it is, (2) cashed out, or (3) moved to another account (known as a “roll over”).

Clearly, the fact that you are searching around for what to do with old 401k money means it’s not in a good place right now. There may still be hope to make some adjustments with your Financial Planner. I suggest first reading more (Source 1 below) about how Financial Planners work. Also, if you are over 70 and ½ you will be forced to take a required minimum distribution each year.

Cashing out your old 401k is an option. The fees and penalties that apply will be based on your age. You will pay an outrageous amount if you are under 59 and ½.

Are you ready to move your old 401k money?

I understand that you don’t have time (or patience) to sort through and research all of your options. I also know that you care about your money, so how about I save you some time.

What’s the best thing to do with your old 401k?

If you want your investments to grow steadily, minimizing risk for money you will need soon, precious metals are a respected choice.

I extensively researched and compared the choices  and offer you the answer here: Regal Assets – A Good Company. Plus, an Account Executive will answer your questions at no charge.

Are you still considering keeping your old 401k money where it is?
Here are 2 shocking sources showing the costs and challenges that await you:

Source 1: AARP (April 2012 issue) – “The Two Faces of Your Financial Planner

Overview: The prices you pay for investing with some Financial Planners.

Key topics: They try to win your trust. Some have a “certification” from passing only a single easy exam. Some have sold your name and contact information.

The two main ways they make money from you.
1. Commission from selling you a financial product.
Can include recurring annual fees of 1 to 10 percent.
Risk of being sold expensive options you don’t need.

2. Asset based fees (charged annually)
Their fees go up if your investments make money.
Some products pay them automatically if your money is put there.
They encourage you to invest ALL or most of your money.

This means it’s unlikely they will suggest that you pay off any large debt, like a mortgage, before investing with their plan. The more money you invest, the more you pay to the Financial Planner.

Advice offered: Check credentials. Never commit to anything at the first meeting. Ask if there are any penalties for getting your money back. Ask why they think the investment is right for you. Discuss options they offer with someone you trust. Don’t trust personal references, as they say, “Even the worst planners can find three people who like them.”

Source 2: Smart Money (April 2012 issue) – “Fix your 401k

Overview: Options for repairing a neglected 401k.

Key topics: Ways to cut costs. How to find better funds. Where to move your money.

The two main ways to make money from what you have.
1. Understand target date funds.
They include stocks and bonds that get more conservative as retirement nears.
The costs built in vary with the type of target date plan you choose.
Some funds even offer access to gold or foreign stocks.

2. You can setup a separate retirement account.
Contribute just enough to a 401k to get an employer match.
Move the rest of your money somewhere stable and safe.
You can gain stability from a solid slice of income in precious metals .

This means a lot more research on your part. Keeping your money in a 401k will keep you riding the waves with stocks.You may have options with target date funds, but you still need to know who has their hands on your money. You will also need to find a trusted Financial Planner to manage your money.

Advice offered: Ask specific questions about target date funds. How did they do in the 2008 housing crash? What assumptions have been made about you? Do they ask you what target date you want, or do they assume based on your age? Will they put your money in a similar (more expensive) index fund instead of the plan you ask for?

P.S.

My solution didn't come until I cut off the stock market from sucking me dry

here's how I kept them from getting anymore...

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