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Chances are you will NOT be at the same job for the rest of your life like our parents or grandparents. When you leave your job you have more than a few options. Many of you may not even know where or how your money is invested. Your options are listed below: 1) TAKE THE 401 K MONEY IN CASH. This is an option of course but not a very intelligent one for a few reasons. Cashing in your 401K plan before age 59 1/2 would mean you would have a government imposed 10% penalty right off the bat. The entire amount would be taxed at your 'ordinary income' tax rate as well. This would mean that the net amount of money you would receive after penalties and taxes would be 35% to 65% lower. In addition, when you consider taking a cash payout, you should also consider that leaving the money in a retirement plan would continue to grow your money tax deferred. 2) LEAVE IT IN THE 401 K PLAN. Most of the time you have the option of leaving it where it is. However, you typically have little or no control of where the money is invested and the investment menu to choose from is very small. The good news if there is any is that leaving it there is NOT a taxable event. You also take a chance that your old company could go bankrupt making it harder for you access your money someday. 3) ROLL IT INTO YOUR NEW 401 K. Some of your new employers will allow a rollover of your old plan into your new plan. The good news is that this is NOT a taxable event. However, rolling your 401 K into another 401 K vs. a ROLLOVER IRA significantly reduces your investment options and is nowhere near as flexible. 4) ROLL IT INTO YOUR OWN 401 K ROLLOVER IRA. A ROLLOVER IRA would allow "stretching your IRA money” http://moneycentral.msn.com/content/Taxes/Taxshelters/P33760.asp for years to come through your family. To maximize your investment options rolling your money into an IRA makes the most sense for most people. There are over 12,000 mutual funds, any stocks or any bonds or annuities that your money can end up in. For those of you with little or no investment knowledge this can be very confusing to say the least. For an annual cost of $35 USE the help of a broker, like Phil Wieloch. This makes it sound like Phil is only charging $35 a year to help the client. You might want to add that it is a $35 maintenance fee. YOU choose where your money will be invested. To roll your 401K money to a Pershing/Investors Capital Corp. IRA contact your Human Resources Dept. today and request a ROLLOVER kit. Or simply call Phil Wieloch @ (860)669-0005 or toll free @ (866)669-0005 to schedule a 15 minute appointment. Deciding if a Traditional, SEP Ira or a Roth Ira are for you should be done by consulting with a tax professional. A financial consultant, such as Phil Wieloch can help you to choose how to fund your IRA's. Typically IRA's of any kind are funded with Mutual Funds, stocks, or bonds. Discussing the Roth Ira vs. the Traditional Ira is something you should do with a tax professional however I have provided a link below to hear what the IRS has to say about Roth Ira's. Some basis information about a Roth Ira is as follows:
Frequently Asked Questions - 17.3 Roth IRA Investors Capital Corp. is an American Stock Exchange company and as a broker and registered representative, Phil Wieloch recommends and sells stocks through the Pershing live, on line system or through the trading desk at Investors Capital. Stocks can be extremely dangerous and could result in loss of principle invested however, stocks could be recommended by Phil if you are a suitable candidate. We at Wieloch Fiancial will NOT recommend penny stocks for obvious reasons. The fee for buying stocks usually is between $50 and $150 per trade depending on the volume and the dollars being invested and the volume of stocks traded. If you are interested in picking and buying stocks and could use some guidance, you came to the right place. By the way, your Investors Capital brokerage accounts can be viewed on line daily. Contact Phil Wieloch today for details. Bonds are a means of providing INCOME through interest promised by the issuer either monthly, quarterly, or semi-annually. A zero coupon bond pays no interest to the bond holder until maturity. Typically, a bond will cost $1,000 if sold at par. Therefore a bond being sold for less than par would be sold at a discount. A bond being sold for more than par would be selling at a premium. The rating of a bond is very important due to the possiblity of losing principle invested if an issuer defaults on their promise to pay interest on a scheduled basis and to pay back principle invested on a stated maturity date. Credit agencies, otherwise known as the 'watch dogs' for the general public, rate bonds by the issuer's credit and their assets vs. liabilities ratio. There are three companies that are top rating agencies . . . . . Standard and Poors, Moody's and Fitch. Bonds are an excellent way to create INCOME for clients who are interested in 'safety' and 'income'. Please call Phil to discuss your risk tolerance and the possibility of the use of bonds in your portfolio.* *All offerings are subject to price change and availability. Corporate bonds are subject to interest rate risk. Investors should be aware that bond values may decline, if interest rates rise. Municipal bonds, Corporate bonds, U.S. Treasury Securities, Government Agency bonds, and CDs will fluctuate in value and if sold prior to maturity may be worth more or less than their original cost. *Interest is guaranteed by the AA rated issuer, principal is not. This investment combines certain features of debt and equity. The investors earning potential is limited to the security’s rate of interest. If shares of stock are delivered to the investor, the value will be less than the original investment amount. May not be suitable for all investors. Consult your financial advisor. This is not an offer to buy or sell. There are over 11,000 Mutual Funds available on various stock exchanges. Phil Wieloch of Wieloch Financial representing Investors Capital Corp. has the ability to recommend and sell thousands of mutual funds. Some of the advantages of mutual fund investing are as follows:
For more information on mutual funds I have attached a link to Morningstar! Morningstar: Mutual Fund Ratings and Research As far as an annuity payment is concerned it simply means payment for life. To categorize Annuities very simply they can be broken down into 3 areas:
Annuities in general share many of the same characteristics:
Call today to see if an annuity is for you! Phil Wieloch 860-669-0005 Here are some basics of 529 plans:
Tuition Savings calculator (outside internet link) Phil Wieloch is not responsible for the links or information on the web sites outside of the Wieloch Financial web site. These links are provided as a convenience to clients and users of the internet. Securities offered through |