FINANCIAL FOCUS

RETIREMENT PLANNING

Q:

I recently became unemployed. What should I do with my 401(k)?

A:

This is a very important decision. Making the right choice will have a positive effect on your retirement and eliminate a lot of money worries. You will want to have control of your money once you leave your employer. Develop a relationship with a local, reputable retirement planning advisor who will help you determine the best course of action to take.

Since your paycheck has stopped, you’ll be able to better manage and lower your risk. You can create an income stream to subsidize other sources you may be using for monthly income. You can create a portfolio with a better mix of investments that will be more in tune with your goals. You’ll avoid the mistake of taking income from the wrong accounts.

Most important is the fact that if you leave your funds in your employer’s retirement account and use it for income, your spouse may not receive money upon your death if you make the wrong decision. Even if you elect joint life income, your children will not receive any money left in the account when you and, if married, your spouse pass away.

When you retire, rollover your 401(k) or 403(b) to a personal IRA. When you (and your spouse) are deceased, your children will receive all money remaining in your qualified account.

For professional advice on retirement planning, call our office at

(440)942-1936 to receive a free pamphlet: 401(k) and 403(b) Rollover Mistakes.

Anthony Newman President