Skip to content

What To Do With Unexpected Extra Cash & Other Mailbag Questions

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.

(Click the featured times below to jump forward in the episode)

 

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:

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Mailbag: When Should I Take Social Security?

July 2, 2020

Are you wondering how much longer you really have to wait before claiming Social Security? Or are you looking to find the perfect financial advisor but haven’t found them yet? Eric answers three questions from the mailbag in this week’s podcast.

Read More

Financial Lessons Learned from the Farm

June 25, 2020

Whether you are growing some backyard tomatoes or have 100 acres of farmland, what are some financial lessons to be learned? You don’t need a green thumb to understand these financial principles.

Read More

Financial Truth Bombs

June 18, 2020

Need someone to tell it to you straight? On today’s episode, Eric gives four financial truth bombs that might change the way you think about your financial plan and your portfolio.

Read More

Outdated Financial Rules

June 11, 2020

What financial rules are worth following and which ones need an update? On this episode, we discuss several known financial rules to see which ones are dated and which ones stand the test of time.

Read More

How To Mess Up Your Retirement Plans

June 4, 2020

How can you know your retirement plans are what they should be? What thoughts and assumptions can ruin your retirement? One thing’s for sure–you don’t want to mess it up!

Read More

The Customer Ain’t Always Right In Financial Planning

May 28, 2020

When you see a financial advisor, do you want them to always tell you “you’re right” or do you want someone to coach your through your financial plan? Let’s talk about when the customer isn’t always right when it comes to financial planning.

Read More

Coronavirus Update and a Look at Interest Rates

May 14, 2020

When you retire, it’s important to set up several sources of income, particularly predictable income. What are some forms of reliable income and what streams of income are more vulnerable? We’ll explore the options and help you determine if they might work for you.

Read More

Finding Predictable Income Sources in Retirement

May 7, 2020

When you retire, it’s important to set up several sources of income, particularly predictable income. What are some forms of reliable income and what streams of income are more vulnerable? We’ll explore the options and help you determine if they might work for you.

Read More

What’s The Difference Between These Important Financial Terms?

April 30, 2020

Do you know the difference between a Roth contribution and a Roth conversion? What about individual bonds and bond funds? Eric explains the difference between these important financial terms so you can decide what should be included in your financial plan.

Read More

The Fool’s Gold of Retirement Planning

April 23, 2020

Are you clinging to financial ideas that give you a false sense of hope? On this episode, Eric points to clear strategies for you to make wise decisions when retirement planning.

Read More

Leave a Comment