If you thought high school physics and calculus were tough, consider the rules for inherited Individual Retirement Accounts (IRA). Deciphering the rules for beneficiaries can be tough and mistakes may be costly in the form of higher taxes and possibly lower investment returns. What do you need to know to avoid common mistakes? Read on. First, let's clear up what we're talking about. An ... Read More
401k
Ask the Adviser: If I Quit My Job Can I Cash Out My 401k?
What can you do with your old 401k? Whether you have visions of exotic vacations, jetting around the world or paying for needed car repairs or cashing out to pay old credit cards, think before you act. This is a common question that comes in various forms. So what can you do? Answer: Yes, you sure can. But you will pay income taxes and possibly early withdrawal penalties if you are under age ... Read More
Financial Planning Roadmap
Wouldn't it be nice if money came with a user manual or a road map? Well, here it is, folks. You have asked and the financial planning powers that be (or at least the folks at Bloomberg BusinessWeek) have answered. Click here for the Financial Planning Flowchart. For the Do-It-Yourselfer in all of us, this fun, interactive chart is a great tool. But like any tool, it's not right for all ... Read More
401k Hardship Distribution for Medical Expenses
Ask the Money Coach: My mother got into a car accident and can not make decisions on her own. I am currently her power of attorney. How can I cash out her 401K to pay for her expenses? She has been out for over a week and doctors expect her to be disabled for quite some time. I need help to pay for everything so how can I get access to her 401k? Response from Boston Money Coach: Please accept ... Read More
Borrowing from Your 401k Retirement Plan
Ask the Boston Money Coach: Retirement Plans Question: I already have an existing loan from my 401k plan, I need cash but can I still get money out of my account? Response from Boston Money Coach Steve Stanganelli regarding borrowing from your 401k. Not all plans allow employees to borrow from their retirement accounts. And these types of accounts are really not meant to be used as ... Read More
IRA and 401k Contribution Limits Changed for 2013
IRA Contribution Limits for 2013 The IRS has increased the maximum contribution limits for contributions made for 2013 to the following: Traditional/IRA Rollover: $5,500 ($6,500 if you are 50 years old or older) Roth IRA: $5,500 ($6,500 if you are 50 years old or older) SIMPLE IRA: $12,000 ($14,500 if you are 50 years old or older) SEP IRA: $51,000 ($51,550 if you are 50 years old or ... Read More
How to Rollover Your 401(k)
Ask the Boston Money Coach Series Question: I once worked for a company where I had a retirement plan but after I left I didn't move my account. I was wondering how do I go about retrieving my money from my 401k? Response from Boston Money Coach Steve Stanganelli: Your first step is to contact the plan administrator or the human resource department of the firm. They will direct you to ... Read More
Deferring Retirement to Salvage 401(k)
Ask the Boston Money Coach Question: Will working longer and deferring retirement allow me to have more money for when I finally retire? I'm 54 now and was originally planning on retiring at 65. My 401K took quite a hit a few years ago and now I'm wondering if I should be postponing my retirement. Financial Planning Response from Boston Money Coach Steve Stanganelli: Time heals all wounds ... Read More
How Many Choices Does A Retirement Investor Need
KISS - Keep It Simple, Stupid. That advice can apply to most things in life. It may be true for investing as well. As financial advisors we have access to tons of academic research, white papers and other sources of navel gazing. But the reality is that most investors prefer to KISS. And maybe they're onto something. Yes, we try to demonstrate our added value through complex algorithms ... Read More
Splitting the 401k After Divorce
Ask the Boston Money Coach: Divorce Financial Planning Question from another financial planner: I have a client who has been divorced since October 2006. My client had a 401k leading up to the divorce and on 10/25/2006, when he filed for divorce, the 401k had $19,000 in it, and was 100% invested in a Fidelity MM fund. Now the value is closer to $20,000. His ex-wife is now asking for her ... Read More
