Show #280 Airing: Sunday, January 16, 2005
Are you tired of seeing your 401(k) or 403(b) funds inching along, or even going down? Think you could do better with the investments? Maybe now is the time to take control of your retirement investments that you have at work. Here to tell us how to take over management of our retirement accounts is a guest who we couldn’t manage without, Jim Lineweaver, founder of Lineweaver Financial Group.
Question: Why would someone want to roll their money our of their 401(k) retirement plane while still working?
Answer: Diversification—think about Enron. You may feel that you need to have more inside your plan than just your company’s common stock.
One may also want to be able to self-direct their retirement.
Question: Are there any tax ramifications to this decision?
Answer: There are none. The money is rolled from custodian to custodian; therefore, there are no taxes.
Question: Are there any fees?
Answer: Sometimes this can actually lower the fees and expenses that internal fund managers are charging. It can give you professional help and better service in managing the retirement plan.
Question: Can anyone do this?
Answer: You need to check with your Human Resources dep artment or call our office for more information. More and more companies are allowing this because of the liability involved with company stock.
Question: Are there any restrictions?
Answer: Usually, certain percentages of the plans are allowed to be rolled out or, put another way, certain percentages need to be kept inside the company plan.
Rolling out money, however, does NOT affect your future contributions. Your deductions will still be done through work into their plan. You are just redirecting a portion of the plan to be managed by a professional.
Some folks should leave their retirement accounts with their company. But others are better off taking control themselves. If you have questions, talk to your company’s Human Resources Department, or give Jim Lineweaver a call.
Jim Lineweaver is a registered representative of and offers securities through Walnut Street Securities, Inc. (WSS) Member NASD/SIPC.
Branch Office:
9050 Sweet Valley Drive,
Valley View, OH 44125
216-520-1711
WSS does not offer tax or legal advice.
Lineweaver Financial Group is not a subsidiary or affiliate of WSS.
Material discussed is for information purposes only and should not be the basis for any investment decisions.
