Retirement Tips


Retirement Tip #1

How much advice will I need?

Most people only retire once. You don’t get to practice. If you are going to make a mistake regarding whether you should have too much advice or too little, error on the side of too much!
Some individuals should take the “do it yourself” approach! Most should not. To decide whether they need an advisor’s services, they should ask themselves these questions:

  1. Am I knowledgeable about the investment markets?
  2. Can I do my own financial planning?
  3. Do I have the extra time that I want to commit to these tasks?
  4. Will I enjoy handling my own investments and planning?
  5. Is the potential savings worth the potential risks of making a mistake?

People who answer “yes” to all five questions may want to take their retirement planning into their own hands. For those giving one or more “no” answers, I would suggest consulting a professional advisor.

Retirement Tip #2

Should I roll over to an IRA when I can leave my pension or 401(k) balance in my plan and not pay any expenses?

While many investors do leave pension balances in a company-sponsored plan, many individuals prefer an IRA for a number of reasons.

For one thing, the choices in the company plan are usually limited to a handful of investment accounts, while an IRA offers an almost unlimited number of alternatives and the ability to make changes frequently and easily.

Also, many retired investors find that the service from a former employer or from a toll-free number’s voice menu is less than adequate.

Perhaps the most important reason retired investors choose an IRA is the personal attention and advice offered by a financial adviser who is knowledgeable about the investment markets, financial planning, and the particular needs of the retiree.

Plan participant leaving an employer typically has four options (and may engage in a combination of these options), each choice offering advantages and disadvantages.

For Balance, please update your material to include each option below:

  • Leave the money in his/her former employer’s plan, if permitted;
  • Roll over the assets to his/her new employer’s plan, if one is available and rollovers are permitted;
  • Roll over to an IRA; or
  • Cash out the account value

Account owner should consider the potential tax ramifications, age and contribution deductibility limits in this account type.

If you have any questions regarding IRAs or anything else regarding your nearing retirement, please call me at 719-219-8444.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment Advice offered through RS Asset Management, LLC, a registered investment advisor and separate entity from LPL Financial.

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