Mar 10, 2022

The old saying goes “This Isn’t My First Rodeo.” We've seen similar rising gas prices in the 70s and 80s. It feels like it’s going up almost every day or so now. Adding this to inflation in the grocery store we are faced with more and more uncertainly in the market.

A lot of people are rethinking traveling and employees that have to commute are feeling the pinch in their wallets. Because of this turbulent time, we are going to take some time to answer some of your questions when it comes to retirement planning. 

Doug in Clean Creek says his company is not allowing him to move his 401(k) into an outside account. He’s heard of a lot of people doing so, but how does this work? 

401(k)s have some broad rules, many of which are put in place by your employer. As far as the government is concerned there is no regulation on when you can do a rollover. What you have to be aware of then is what rules your employer has in place. 

Commonly, people are eligible to roll over their own contributions at 59 ½. Others can’t roll over anything until they leave their employer. Often times if your employer is matching your contributions, you won’t be able to roll over that money until you leave your job. 

Doris is in the middle of a divorce after 30 years of marriage. Will she be better off getting half of her husband's 401(k) or half of his pension? 

Pensions can give a lot of people a sense of comfort and security in the form of a secured income. If you take the Pension, you could live off those payments and your Social Security. 

You can sit down and calculate how much you’ll get with both benefits. However, if you are working another 10 years you can’t guarantee how much money will be put into your husband's 401(k). If you like the form of a guaranteed income taking the pension may be the better option. 

James is wondering if he should change how much he is saving with interest rates going back up? He hasn’t been keeping much in the bank recently because of the historically low rates. 

To determine this, we have to look at your age and need. If you are already retired, the recommendation is to have at least 6 months of living expenses in your savings account. The same rules apply if you are working. You want to keep pace with inflation but you need to ensure your emergency savings can support you if necessary. 

TIMESTAMPS: 

1:45 – At the rodeo

3:35 – Be aware of the history

8:40 – “How do I roll over my 401(k)?”

12:00 – Avoiding the snow

14:51 – “Half of my ex-husband's pension or 401(k)?”

19:25 – “Should I change how much I am saving?”

MORE INFORMATION:  https://www.flemingfinancialservices.com/podcast