Friday, September 27, 2013

Finance Man

I am introducing a new series by the Finance Man (a.k.a. my husband Robert) who has been a Christian financial counselor the past 25 years and a licensed financial adviser for the past nine years. I think you will enjoy his words of wisdom in the chaotic financial world we live. No worries for those who are interested in bread & baking as food & nutrition are still the main thrust of Paula's Bread Blog!
Without further's Robert:

Should I Rollover My Old Retirement Plan at Work?
by Robert Sutton

Recently, we moved my mom after 50 years in the same house. It was nostalgic seeing old items which were once "hi-tech," such as 35mm slides, complete with carousel, stove-top coffee maker, hand-cranked ice crusher, eight tracks, etc. Although, we had fun walking down memory lane, it was good to get back to our iPads and smart phones!

Have you changed jobs and left your retirement plan with your old employer? Do you want to be nostalgic with your second largest financial investment? Probably not...

Your three options when you leave a job with a 401(k) or 403(b) plan are:

Do nothing, or
Move it

Cash; Taking the balance in cash is the most fun, until the IRS wants "their" money; this is usually the worst choice as penalties and income taxes take almost half your savings. You will wish you had read the rest of this article!

Do nothing; Leaving your money in your current plan could be like 35mm slides in a carousel; once good, now very outdated!

Move it; Moving your retirement into your own IRA where YOU control the investments is usually the best choice. However, getting funds from your old account, opening a new IRA, and putting funds into it, is not for the faint of heart. More specifically, if proper steps are not followed, you could be assessed an early withdrawal penalty by the IRS, and pay taxes on your balance. Not a pretty sight! When I have issues with my car I turn to an expert. In the same way, if you want to discuss options of moving your old retirement plan, please contact me. I will explain the process,including all costs, and you decide what to do, all without pressure.

Until next time....God Bless You!

If you have questions about this or other financial topics, call 918.698.1454, or email me at

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Investors should carefully consider the investment objectives, risks, charges and expenses of all funds. This and other important information is contained in each fund's prospectus and summary prospectus, which can be obtained from a financial professional and should be read carefully before investing. Securities offered through Parsonex Securities, Inc. Member FINRA

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