Liquidating an old 401k
Joe Lucey, CFP, RFC, is a Certified Financial Planner and Registered Financial Consultant, and president of Minneapolis-based Secured Retirement Advisors (a Registered Investment Advisor).
With a 20-year career devoted to retirees and those transitioning into retirement, he brings a wealth of insight and strategy to the specific objectives, concerns, risks and opportunities that this segment of the population faces.
You then forward the check to the new provider, together with any forms the new provider requires.
Either way, your money will be out of the market from the time the old provider liquidates your investments to the time your new provider receives the check and you reinvest the money.
Bohnne Jones worked in the healthcare industry for 33 years until she was laid off in January 2002.
Going back to school and picking up expertise in IT gave her a new start, but only a temporary one.
A two-year engagement came to an end and then a position as a VP in a software start-up was over in eight months when the company started feeling the first strains of the oncoming global contraction.
Jones wasn't ready to retire and had a life-long interest in design and decorating.
Guidant Financial, a Bellevue, Wash.-based financial services company that specializes in helping entrepreneurs find capital for their businesses, advised her on the process.
When you rollover a 401k from a previous employer, most 401k providers will sell all your investments and send a check to your new 401k or IRA provider.
Some 401k providers will make the check payable to “[new provider] FBO [your name]” but they will send the check to you.
Since the creation of the 401(k) and other employer-sponsored retirement plans, most advisers and investors have focused on how to get money into them — not necessarily how to best take money out of them.
Now, with baby boomers entering their retirement years at a rate of over 10,000 a day, investors have to change their focus from accumulation of assets to generating a lifetime of income from these assets.