Today’s Prep:
While many are hitting hard times financially, maybe you are among the few who are doing well and trying to make the most of it like Grace in Ames. Eric gives some advice on what to do with extra cash as well as answering two other questions from the mailbag.
Equipping Points:
Is now a bad time to do a rollover? What should you do if you happen to be in an extra good place financially right now? On today’s episode of Retirement Ready, Eric answers a few of your questions from the mailbag.
Patrick in Urbandale is two old 401(k)s that he never rolled over. Now that he has the time to focus on it, he wants to know if this is a good time or a bad time to take care it? What does the rollover process consist of and what’s the risk of doing it now in a more volatile market?
Grace in Ames feels a bit guilty given the current circumstances, but she recently received a big tax refund, a surprise inheritance, and the stimulus check. What should be her priority with all of this money? Always start with a plan. Leave it in the bank until you have a thorough plan to decide what makes the most sense for you, whether it’s to donate, pay off debt, investing in the market, buy an investment property or a little bit of everything.
Ronnie in Indianola wonders if it is a good or bad idea to have all investments, taxes, legal documents and estate planning all handled by the same firm. There are pros and cons that you’ll want to consider if you choose to do this. Is it all run by the same person? Or is it a team of people working under the same roof?
To get help with any of these situations, make sure to reach out to a fiduciary you can trust to set the plans and ensure you are continuing toward your financial goals.
0:47 – Mailbag: Should I rollover my 401(k) now?
2:24 – What do you miss out on when moving your 401(k) to an IRA?
4:31 – Mailbag: How should I best invest extra money right now?
7:32 – Mailbag: Is it good or bad to have taxes, legal documents, and investments all handled by the same firm?
Related Resources:
5 Frequently Asked 401k Questions
Don’t Mistake Good Intentions for Sound Financial Advice
What You Should Know About Leaving an Inheritance
Today’s Takeaway:
[spp-tweet tweet= “We can give you that second opinion to see if what you’re doing is the right path. If it is, we’re going to tell you to do that. If we can improve your situation, we’ll tell you how to improve it and you can decide if you want us to help you with that. –Eric Peterson“]
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