It’s Sunday, which means...It’s recap time! 

The theme for this week was: 5 questions to ask before you rollover your old 401k. When you change jobs or retire, you’ll want to decide what to do with that old 401k plan from your previous employer. You really have 3 good options - leave it there, roll it over to your new plan if you’ve changed jobs and your new employer offers a 401k, or you can roll it over to an IRA. But how do you know which option is right for you? 

So this week, we talked about 5 questions that you’ll want to ask before you do anything with that old 401k. 

Hopefully after listening to the tips this week, you better understand how important it is to really put some thought into how you want to handle that old 401k, so you can make an informed decision. 

Here are the 5 questions we covered this week: 

• How Will The Fees Change?
• Will the Investment Options Be Better?
• Do I Need Protections that the 401k Can Provide?
• Will You Continue To Work For Your Previous Employer?
• Does Consolidation Make Sense For Other Reasons?

If you missed any of these episodes, you can find them on iTunes or Google Play by searching for the “One Minute Retirement Tip with Ashley”. 

Tomorrow, come on back, because we’re starting a brand new theme: What fed policy means for your retirement. The Fed has recently started lowering rates again, which the stock market seems to love, but how will changes to interest rates impact your bond portfolio and your stock portfolio in retirement. It’s an interesting topic that will hopefully allow you to pontificate on the ramifications of lower interest rates at your next cocktail party. 

That’s it for this week! Thanks for listening. 

My name is Ashley Micciche and this is the “One Minute Retirement Tip”.

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, required minimum distribution, RMD, rmd penalty, ira vs 401k withdrawal rules, rmd aggregation rules, rmd exceptions, IRA rollover rules, IRA transfer, IRA rollover, 401k rollover, what is a rollover, 401k rollover to IRA, 401k rollover rules, 401k rollover to IRA rules, 401k rollover to new employer, 401k option, 401k investment options, 401k plan fees, 401k fees

When you change jobs or retire, you’ll want to decide what to do with that old 401k plan from your previous employer. You really have 3 good options - leave it there, roll it over to your new plan if you’ve changed jobs and your new employer offers a 401k, or you can roll it over to an IRA. But how do you know which option is right for you? 

So this week, I’m teeing up for you 5 questions that you’ll want to ask before you do anything with that old 401k. 

Today’s question that you’ll want to ask before touching that old 401k is: Should I consolidate my old 401ks into an IRA for other reasons. 

Remember, you don’t actually have to take your money out of your old 401k plan when you leave, as long as you have more than $5000 in the plan. 

Besides the considerations I talked about earlier this week, that might persuade you to take your money out of your old 401k - namely investment quality and fees, there are a couple of other reasons why you may want to consider consolidating your assets into an IRA. 

Reason #1 - RMD Rules are strict and penalizing. In the year that you turn 70 ½, you’ll start taking Required Minimum Distributions, or RMDs, from your retirement plans. There are some exceptions to starting at 70 ½, that I’ve talked about on my YouTube Channel, so if you want to dive deeper exceptions to that rule, head on over to True North Retirement on YouTube and search for RMD. Subscribe too while you’re there, will ya?

Ok, so back to the RMD rule. Here’s the problem with leaving money in old 401k when you start RMDs...you have to take separate RMDs from each of these 401k plans, which is annoying. Many of these 401k providers like Fidelity, Empower, John Hancock, etc have millions of accounts, so they won’t chase you down at the end of the year if you haven’t taken your RMD. 

If you miss taking your full RMD from all of your retirement accounts, you will pay hefty taxes and penalties on the amount you should have taken, so it’s just a good idea once your RMDs start to move all of your retirement assets into one IRA, with one financial institution, with a good advisor who will hound you starting around Thanksgiving if you haven’t yet taken your full RMD.

Reason #2 why you may want to consolidate your old retirement accounts into a single IRA is simplification. I don’t know about you, but I don’t really want to get statements every month from 4 different places for 13 different accounts. If it’s not necessary for you to have duplicate accounts types spread out across different places, then consider consolidating to simplify your life. It’ll feel like Marie Kondo came in and sparked joy in your financial life when all those accounts are in one place. 

Also, for estate planning purposes, it’s also much easier for your spouse and heirs to sort through everything if it’s all in one place. 

That’s it for today. Thanks for listening. Tomorrow, we’re going to recap the week and I’m going to give you a little preview of next week’s theme. 

My name is Ashley Micciche and this is the One Minute Retirement Tip.

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, required minimum distribution, RMD, rmd penalty, ira vs 401k withdrawal rules, rmd aggregation rules, rmd exceptions, IRA rollover rules, IRA transfer, IRA rollover, 401k rollover, what is a rollover, 401k rollover to IRA, 401k rollover rules, 401k rollover to IRA rules, 401k rollover to new employer, 401k option, 401k investment options, 401k plan fees, 401k fees

When you change jobs or retire, you’ll want to decide what to do with that old 401k plan from your previous employer. You really have 3 good options - leave it there, roll it over to your new plan if you’ve changed jobs and your new employer offers a 401k, or you can roll it over to an IRA. But how do you know which option is right for you? 

So this week, I’m teeing up for you 5 questions that you’ll want to ask before you do anything with that old 401k. 

Today’s question that you’ll want to ask before touching that old 401k is: Will you go back to work for your previous employer or do you plan to work part time for your old employer in the future. 

I had a client who retired recently...I use the word retire loosely, because she is actually continuing to work for her old employer, she has just massively scaled back her hours and responsibilities for her old employer. 

This is not uncommon. A lot of people go back to work for previous employers, so if that’s you and you have a 401k parked at your old employer, it may be easier for you to leave your 401k where it is, so you can contribute to it in the future without starting over from scratch with $0 in the plan. 

Keep in mind, your employer will likely have restrictions on whether or not you can contribute to the plan and receive matching dollars if you are part-time. So be sure to find out what those annual hours requirements are if you’re working part-time, and see if you can still contribute to the plan.

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip.

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>>> Subscribe on iTunes: https://apple.co/2DI2LSP

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>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, required minimum distribution, RMD, rmd penalty, ira vs 401k withdrawal rules, rmd aggregation rules, rmd exceptions, IRA rollover rules, IRA transfer, IRA rollover, 401k rollover, what is a rollover, 401k rollover to IRA, 401k rollover rules, 401k rollover to IRA rules, 401k rollover to new employer, 401k option, 401k investment options, 401k plan fees, 401k fees

When you change jobs or retire, you’ll want to decide what to do with that old 401k plan from your previous employer. You really have 3 good options - leave it there, roll it over to your new plan if you’ve changed jobs and your new employer offers a 401k, or you can roll it over to an IRA. But how do you know which option is right for you? 

So this week, I’m teeing up for you 5 questions that you’ll want to ask before you do anything with that old 401k. 

Today’s question that you’ll want to ask before touching that old 401k is: Do you need protections that the 401k plan can provide. 

An interesting rule about 401k plans is that the money inside your 401k is protected from creditors if you file for bankruptcy. 

If you are concerned about your credit and think it’s likely you’ll file for bankruptcy in the foreseeable future, you may consider leaving the money in your old 401k plan, and not rolling it over to an IRA. Since the money is protected inside of a 401k, but not in an IRA. It’s a funky rule and it should be the same across all retirement accounts, but leave it up to Congress to make things complicated. 

My point is that knowing this rule in a bankruptcy situation can potentially shield your precious retirement assets from creditors in a deep, dark bankruptcy situation. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, required minimum distribution, RMD, rmd penalty, ira vs 401k withdrawal rules, rmd aggregation rules, rmd exceptions, IRA rollover rules, IRA transfer, IRA rollover, 401k rollover, what is a rollover, 401k rollover to IRA, 401k rollover rules, 401k rollover to IRA rules, 401k rollover to new employer, 401k option, 401k investment options, 401k plan fees, 401k fees

When you change jobs or retire, you’ll want to decide what to do with that old 401k plan from your previous employer. You really have 3 good options - leave it there, roll it over to your new plan if you’ve changed jobs and your new employer offers a 401k, or you can roll it over to an IRA. But how do you know which option is right for you? 

So this week, I’m teeing up for you 5 questions that you’ll want to ask before you do anything with that old 401k. 

Today’s question that you’ll want to ask before touching that old 401k is: Will the investment options be better? 

When you change jobs or retire, you don’t actually have to take your money out of the 401k plan. If you have more than $5,000 in the plan, you could leave the money there. But you definitely don’t want to leave your money in your old 401k plan if the investment options are a complete dumpster pile of rubbish. 

One of the drawbacks of the 401k plan is that your investment options are chosen for you in most cases, so you can only choose from what’s selected for you. Some plans have a great lineup of funds with good quality and variety. However, I’ve seen my share of complete garbage over the years. 

If you aren’t thrilled about what’s available to you in your old 401k, it might be wise to move your money out sooner rather than later. 

And when you rollover your old 401k to an IRA, you have tens of thousands of investment options that are open to you, and you can hand over your IRA to an advisor who can take care of all the investment management for you - another plus of rolling over your old IRA - freeing you up to focus on other things that are most important to you. 

That’s it for today!  Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, required minimum distribution, RMD, rmd penalty, ira vs 401k withdrawal rules, rmd aggregation rules, rmd exceptions, IRA rollover rules, IRA transfer, IRA rollover, 401k rollover, what is a rollover, 401k rollover to IRA, 401k rollover rules, 401k rollover to IRA rules, 401k rollover to new employer, 401k option, 401k investment options, 401k plan fees, 401k fees

When you change jobs or retire, you’ll want to decide what to do with that old 401k plan from your previous employer. You really have 3 good options - leave it there, roll it over to your new plan if you’ve changed jobs and your new employer offers a 401k, or you can roll it over to an IRA. But how do you know which option is right for you? 

So this week, I’m teeing up for you 5 questions that you’ll want to ask before you do anything with that old 401k. 

Today’s question that you’ll want to ask before touching that old 401k is: How will the fees change? 

Retirement plan fees vary widely. Often the larger the 401k plan is, the cheaper it is. So if you go from mega-multinational-household-name company to mom and pop new 401k, chances are the old 401k from uber-large conglomerate is going to have lower fees compared to your new plan. 

The important point here is that while fees alone shouldn’t drive your decision about what to do with your old 401k, it should be a consideration. So it’s important to understand the fees in your old plan, and how those fees compare to your new 401k or your IRA that your considering transferring your money to. 

401k plan fees are still a bit muddled, despite some major headway made several years ago with some new rules aimed at better fee transparency. 

So if you have no clue how to figure out what your 401k fees are, I have a little workaround for you. Call the provider where your 401k plan is held. Ask them for a document called the 404a-5 Participant Fee Disclosure Document. You’re required to receive a copy of this document at least once a year, but your plan provider should be able to send you another copy if you request one. This 404a-5 fee disclosure document should clarify in plain english the fees in your 401k.

The point here is that you need to know what you’re paying in your old plan if your money is still parked there, and know what the cost is of investing with the new provider - whether that be through a 401k plan with your new job or an IRA. Either way, arm yourself with the cost information so you can make a more informed choice. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, required minimum distribution, RMD, rmd penalty, ira vs 401k withdrawal rules, rmd aggregation rules, rmd exceptions, IRA rollover rules, IRA transfer, IRA rollover, 401k rollover, what is a rollover, 401k rollover to IRA, 401k rollover rules, 401k rollover to IRA rules, 401k rollover to new employer, 401k option, 401k investment options, 401k plan fees, 401k fees

Welcome to a new week and a new theme here on the One Minute Retirement Tip! This week, I’m talking about rolling over your 401k when you change jobs or retire. While you definitely want to keep things consolidated so you don’t have 10 different 401ks floating around from 10 previous employers, it’s also important to understand the pros and cons of rolling over your old 401k.

So this week, I’m sharing with you 5 essential questions you’ll want to ask before you take money out of your old 401k and move it elsewhere. 

We’ll cover the questions you should ask about the fees, investment options, special nuances about 401ks compared to IRAs that very few people know about, consolidation of old accounts, and your intentions about working for this employer in the future - and how all of these considerations will influence what you do with your old 401k. 

That’s it for today. Thanks for listening! Tomorrow, we’re going to dive in by covering a very important but often overlooked question - how will the fees change when you rollover your 401k.

Before you go, please take a minute to leave a review for the One Minute Retirement Tip in Amazon or iTunes. If you find these tips valuable, or if you have feedback for me or topic suggestions, it’s a great way to share the love and share your ideas with me! And thanks to you if you who have already left a review. 

My name is Ashley Micciche...and this is the One Minute Retirement Tip. 

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>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, required minimum distribution, RMD, rmd penalty, ira vs 401k withdrawal rules, rmd aggregation rules, rmd exceptions, IRA rollover rules, IRA transfer, IRA rollover, 401k rollover, what is a rollover, 401k rollover to IRA, 401k rollover rules, 401k rollover to IRA rules, 401k rollover to new employer, 401k option, 401k investment options, 401k plan fees, 401k fees

This week, I’m talking about dealing with the financial and emotional stress of caring for aging parents, all while trying to save for your own retirement and balance all of your other competing priorities. 

I want to pause briefly from this week’s topic, because we’ve hit an important milestone here on the One Minute Retirement Tip - episode 300!

I don’t think I’ve told you the origin story of the One Minute Retirement Tip...

Thanks for being a loyal listener, I’m happy to say that the last time I checked the number of the One Minute Retirement Tip, we were at over 24,000 lifetime downloads since the inception last November, and it keeps growing every month, so thank you for being here with me every morning! 

So since this is episode 300, I have a special favor to ask. I would be so grateful if you could give me a virtual high five in celebration of reaching the 300th episode milestone, by leaving a review for the One Minute Retirement Tip in Amazon or iTunes. Reviews help others find these daily tips, so if you find this information valuable and worthwhile, it’s a great way to spread the word. And if you’ve already left me a review...thank you! 

That’s it for today. Thanks for listening. Tomorrow, we’re going to recap the week and I’m going to give you a little preview of next week’s theme. 

My name is Ashley Micciche and this is the One Minute Retirement Tip.

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, paying family members for elder care, getting paid for taking care of elderly parent, caring for aging parents statistics, caring for aging parents, caring for elderly parents stress, medicaid cash and counseling program, importance of elderly care, taking care of the elderly in your home

Every month, on the 3rd Thursday of the month, I go visit about 10 people from my church. All of them are homebound and unable to make it to Mass, so I do a little communion service for them at their home. It’s something that I really enjoy, and I always feel uplifted after my morning spent visiting my fellow parishioners who are homebound. 

But often at these adult care homes and nursing homes, when I sign in as a guest at these adult care homes, I don’t see many other names on the sign in sheet. I noticed a few months back at one home in particular, that of the 5 or 6 residents who lived there, only 3 other people had visited in the last week. 

Loneliness is a pervasive problem among the elderly in our culture. For a variety of reasons, many aging Americans are not frequently visited by their families and they spend the last years of their life with a television as their sole companion. 

So if you are a caregiver, keep up the noble work you’re doing, and if you’re not a caregiver, but you have family living in a nursing home, adult care home, or assisted living, make it a priority to visit more often. And heck, just call your mom more! 

And while you’re there, try to visit with another resident who is very likely lonely and in need of some companionship from someone who still values them as a person. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip.

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----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, paying family members for elder care, getting paid for taking care of elderly parent, caring for aging parents statistics, caring for aging parents, caring for elderly parents stress, medicaid cash and counseling program, importance of elderly care, taking care of the elderly in your home