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Advice Needed: What to do with my 401K

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I received my last paycheck from my W2 job this past week. I love my new found freedom. But now I must start making some decisions, beginning with what to do with my 401K. It’s not a large amount, but it is several thousand dollars. I desperately need 401K advice.

The question is, what to do with it? To be honest, I’m pretty ignorant when it comes to all things retirement related. It is time for me to get serious about it.

Where do I start?  I am happy to say that I’ve chosen wisely in the funds I’ve invested in and have had a pretty decent rate of return over the last 6 months.  I think I’d like to stay involved in the day to day management or maybe month to month.

Advice Needed

Give me your best advice…roll it over to a Roth IRA or something else? What are my options as a self employed.  Right now, the fund is with a company called VOYA, one I’d never heard of prior to this. But I know there are many options for self managed accounts as well.

To be honest, I don’t even know what questions to ask. Perhaps there are some resources you recommend to teach me more, the basics specifically.


Retirement Planning

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Let’s be real, if it weren’t for the mandatory retirement required by my employer (we’re required to contribute 7%, which is matched dollar-for-dollar by my employer!), I’d probably be a ways off from any serious retirement discussion. I mean, we should all be doing it, but when you’re just trying to pay your monthly bills, you’re probably not super concerned about how you’ll be paying for your golden years.

But we should be! Especially with some hints of BIG changes on the horizon!

First, did you see the IRS’ announcement with 2018 pension plan and 401(k) contribution limits? If not, check it out here. For the time being, annual income limits are going UP for traditional IRAs, Roth IRAs, and Saver’s Credit! That’s good news to those in the stage of life to be maxing out retirement contributions!

The reason I use the verbiage here (“for the time being”) is that, right on the heels of the IRS’ announcement, talk from the Whitehouse is suggesting steep reductions in the annual limits allowed for tax-deferred retirement accounts. Check out this piece from the New York Times with more info. Some of these (rumored) reductions would be seriously dramatic.

Where are you in the retirement savings spectrum? Are you actively putting away money for retirement or still in full-on get-out-of-debt mode? I have mixed feelings about my work situation. I like that I’m being compelled to save 7% (+ the 7% employer match!), but I do wish I had the freedom to drop down my retirement contributions in an effort to get out of debt quicker!!!

I sure do hope that by the time I’m able to fully focus 100% on retirement that the investment vehicles to do so still exist! My Dad (before being diagnosed with FTD) was a financial advisor all his life. He has cautioned us for years that he felt Roth IRAs would eventually be taken away in their entirety (note – this is just his gut – no special “inside info” here). He’s urged us for years to get our financial houses in order and be in a position where we can max out our Roths since, in his view, they could end up disappearing soon!

 


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