Episode 58 - What do I do with my 401k when I leave my job?
Description
The meeting with Reid Trego and financial planner Joe Beckford discussed a listener question from a woman handling her husband's $28,000 employer-sponsored 401k upon job departure. They stressed not leaving money with an old employer and highlighted options like rolling over into a new plan or opening IRAs for pre-tax and Roth contributions. They explained retirement plans such as 401k, advising against cashing out for speculative investments.
Beckford elaborated on retirement plans like 403b and 457, emphasizing the importance of understanding investment choices within IRAs or employer-sponsored plans for growth potential. They discussed diversification tailored to risk tolerance, cautioning against early withdrawals before 59 and a half years old. Beckford recommended professional help for large sums and self-investment in index funds.
The discussion underscored the risks of mishandling rollovers and stressed timely actions to avoid tax liabilities. They promoted proactive financial planning aligned with individual goals amid regulatory compliance complexities. The podcast offered insights on optimizing financial decisions during retirement transitions, emphasizing awareness of pitfalls related to taxation and investments to manage portfolios effectively.