Life Changes

Generally, it’s easiest to split bills 50/50 if both spouses’ incomes are similar, but ensuring that both of you are on the same page when it comes to discretionary spending is crucial. Implementing a financial plan can alleviate some of the stress that comes with sharing finances.

When you leave an employer, you generally have four options for your 401(k): leave the money in your former employer’s plan, if permitted; roll it into a new employer’s plan, if one is available and accepts rollovers; roll it into an IRA; or cash it out, which may result in taxes and, depending on your age, a penalty. Each option has trade-offs. Compare the fees and expenses of your current plan with the costs of an IRA, including any advisory fee; the investment choices available in each; the services each provides, such as ongoing investment advice; and benefits your employer plan may offer that an IRA may not, such as loan provisions, certain penalty-free withdrawal rules, or different creditor protections. If you do roll over to an IRA, a direct rollover, in which your plan sends the money straight to the IRA custodian, generally avoids mandatory tax withholding and early-withdrawal penalties; if the money is paid to you instead, it generally must be deposited into the IRA within 60 days to avoid taxes and penalties. If DWAM recommends that you roll plan assets into an IRA we manage, we earn an advisory fee on those assets, which is a conflict of interest. You are under no obligation to roll over assets to an account managed by DWAM.

This is a common question, but one that is hard to answer without knowing your individual circumstances. Some questions to get started are: how do you want to spend your retirement? Do you want to travel? Do you want to leave any money for your children/grandchildren? Please give one of our advisors a call for more information.

That depends on your individual situation. Do you have any kids? Outstanding debts? Give us a call. We’re more than happy to discuss the best way to navigate receiving an inheritance.