Retirement success may not be as easy to achieve as many think.   I attended a conference and heard one speaker relay a story about one company’s 401(k) enrollment meeting where 100% – yes, everyone – said they wanted to enroll in the company’s 401(k) plan.   They all were going through the materials and even choosing allocations they felt were appropriate – and all them were excited about starting to save for their retirement! Continue reading →

Planning to retire?  Contemplating a rollover?  Here are three ways NOT to do it.

1. Get a check from the company

Of course, this is just foolish. The company must withhold 20% from the payment, so that a person with a $100,000 account will have $20,000 withheld, and will receive a check for $80,000. In order to complete a tax-free rollover, the taxpayer must deposit that $80,000 in an IRA plus $20,000 from their pocket to complete a tax-free $100,000 rollover. The taxpayer may eventually get the $20,000 withheld as a tax refund the following year, but that will not help their cash flow, as they need to complete their IRA rollover within 60 days of receiving the check from their qualified plan. The bottom line is that people should never touch their qualified funds. The only sensible way to move funds is a direct transfer from the qualified plan to the IRA custodian and avoid withholding. Continue reading →

Getting ready to retire?  Leaving your company? Wondering whether you should sell or roll-over your company stock?   That’s really a tax-treatment question, which means you should consult with your tax professional; but, here’s a little information you may want to review. Continue reading →

We’ve all heard it.  We’ve all read it.  Most managers fail to match, let alone beat, the market.   Actually, it makes sense!  And, there’s a very simple reason for this, which comes in two parts. Continue reading →