Help
Hi, first time here. My wife is taking an early retirement (63) and is done in 1 month. This came up real fast so we had very little time to figure out what to do with her 403b. As of now we do not need it to live on, and we'd like to place it somewhere safe for a few years even getting 3-4% interest would suffice. Thanks for any help anyone can offer
Page 1 of 1
Retiring What To Do With 403b
#2
Posted 22 May 2009 - 10:17 AM
If you aren't satisfied with your current investment options, now is the chance to move this money to an institution of your choice. Assets may be moved to a Rollover Individual Retirement Account (IRA). This will permit the money to continue to grow tax deferred. Check with the institution currently holding the assets and the institution you wish to transfer to for more details. Also, check to see if your current institution charges any withdrawal penalties (often the case with annuity products). If that is the case, consider transferring only money not subject to penalties. Transfer the rest of the money when it is no longer subject to penalty.
Dan Otter
Dan Otter
#3
Posted 22 May 2009 - 11:35 AM
QUOTE(thechief @ May 22 2009, 11:13 AM) 
Hi, first time here. My wife is taking an early retirement (63) and is done in 1 month. This came up real fast so we had very little time to figure out what to do with her 403b. As of now we do not need it to live on, and we'd like to place it somewhere safe for a few years even getting 3-4% interest would suffice. Thanks for any help anyone can offer
What is her 403b investred in? If it is a fixed annuity with a guaranteed rate she will continue to earn interest with risk to the principal. If the 403b is invested in a variable annuity or a mutual fund you need to consider the volatility of the investment over the next few years. You could roll over the investment to an IRA and urchase a CD or Treasury security but you need to determine if any surrender charges would be imposed. Since you dont need the money now you could defer cashing out until the surrender chageres expire.
#4
Posted 22 May 2009 - 04:45 PM
QUOTE(Admin @ May 22 2009, 10:17 AM)
If you aren't satisfied with your current investment options, now is the chance to move this money to an institution of your choice. Assets may be moved to a Rollover Individual Retirement Account (IRA). This will permit the money to continue to grow tax deferred. Check with the institution currently holding the assets and the institution you wish to transfer to for more details. Also, check to see if your current institution charges any withdrawal penalties (often the case with annuity products). If that is the case, consider transferring only money not subject to penalties. Transfer the rest of the money when it is no longer subject to penalty.
Dan Otter
Thanks for responding, I guess I should have said her 403b is invested in mutual funds and a small amount in a bond fund, all with Diversified Direct, her hospitals choice. I would like to move it somewhere safe with no tax liabilites now.
Thanks again for responding
#5
Posted 28 May 2009 - 02:34 PM
Jim,
This site is not a place for solicitation.
If you want to provide information on the original poster's question for all to see, you are most welcome.
Have a good day,
Steve
This site is not a place for solicitation.
If you want to provide information on the original poster's question for all to see, you are most welcome.
Have a good day,
Steve
#6
Posted 28 May 2009 - 03:39 PM
Sure thing.
In my profession, I see many people approaching retirement without a plan. It is important to get on the ball to avoid suprises and to minimize your investment risk to only that required to achieve required returns.
As such, here are my suggestions for those of you preparing to exit the workforce to find a new life after work:
1. Take stock of your investments. Pull together all of your statements for your investments, including savings, checking, CDs, insurance, brokerage, mutual funds, etc.
2. Objectively evaluate the professionals who have provided you with services and the advice that guided you to your current financial situation. Did they serve you well in the past? Did they get you out of the market before your assets lost significant value? Do they adapt your investments to the market or do they make excuses for poor performance (and no, everyone didn't lose money in the down market)? Pick the ones you want to keep in the running and/or ones you wish to trade in.
3. Seek out the best of the best to manage your investments - you don't need millions to get top-notched investment managers. For many reasons, it is ideal to seek out a financial professional that is a Registered Investment Advisor, or RIA. For instance, to be an advisor referenced on this 403bwise website, being an RIA is a requirement. A good way to find RIAs is through a website called www.WiserAdvisor.com.
BE SURE TO INTERVIEW SEVERAL PROSPECTIVE RIAS BEFORE YOU CHOOSE THE ONE THAT IS RIGHT FOR YOU. ASK THEM TO PROVIDE CRITICAL INFORMATION SUCH AS:
What is Your Investment Approach and How Does Your Performance Stack Up?
How would you summarize your investment philosophy?
What is your investment performance track record?
What separates you from others in the field?
How often will my portfolio be reviewed?
Tell Me about Your Firm
What kind of clients do you serve?
Do you have a minimum investment?
How long have you been in business and how much experience do you have?
Where will my money be held?
How are you compensated and how do you set your fees?
Are Your Products and Services a Good Fit for Me?
What services do you provide?
Who will review my financial affairs with me?
How often do you communicate with your clients?
Please be sure to complete these steps sooner than later. In today's stock and bond markets, money can be lost overnight, and every day you delay taking action could be of significant detriment to your retirement assets.
I hope this is helpful.
-Jim
In my profession, I see many people approaching retirement without a plan. It is important to get on the ball to avoid suprises and to minimize your investment risk to only that required to achieve required returns.
As such, here are my suggestions for those of you preparing to exit the workforce to find a new life after work:
1. Take stock of your investments. Pull together all of your statements for your investments, including savings, checking, CDs, insurance, brokerage, mutual funds, etc.
2. Objectively evaluate the professionals who have provided you with services and the advice that guided you to your current financial situation. Did they serve you well in the past? Did they get you out of the market before your assets lost significant value? Do they adapt your investments to the market or do they make excuses for poor performance (and no, everyone didn't lose money in the down market)? Pick the ones you want to keep in the running and/or ones you wish to trade in.
3. Seek out the best of the best to manage your investments - you don't need millions to get top-notched investment managers. For many reasons, it is ideal to seek out a financial professional that is a Registered Investment Advisor, or RIA. For instance, to be an advisor referenced on this 403bwise website, being an RIA is a requirement. A good way to find RIAs is through a website called www.WiserAdvisor.com.
BE SURE TO INTERVIEW SEVERAL PROSPECTIVE RIAS BEFORE YOU CHOOSE THE ONE THAT IS RIGHT FOR YOU. ASK THEM TO PROVIDE CRITICAL INFORMATION SUCH AS:
What is Your Investment Approach and How Does Your Performance Stack Up?
How would you summarize your investment philosophy?
What is your investment performance track record?
What separates you from others in the field?
How often will my portfolio be reviewed?
Tell Me about Your Firm
What kind of clients do you serve?
Do you have a minimum investment?
How long have you been in business and how much experience do you have?
Where will my money be held?
How are you compensated and how do you set your fees?
Are Your Products and Services a Good Fit for Me?
What services do you provide?
Who will review my financial affairs with me?
How often do you communicate with your clients?
Please be sure to complete these steps sooner than later. In today's stock and bond markets, money can be lost overnight, and every day you delay taking action could be of significant detriment to your retirement assets.
I hope this is helpful.
-Jim
#7
Posted 29 May 2009 - 02:24 PM
Jim,
You make it sound easy to find a good adviser. Perhaps you were trying to help, but this is the 21 century. Heck all you have to do is ask your questions. The problem is that most people don't know the basics well enough to know the answer that best meets their best interests, not the adviser's (very important distinction); and you forget about asking if the adviser knows the basics (many don't).
Read this: http://moneywatch.bnet.com/saving-money/bl...ag=content;col1
You make it sound easy to find a good adviser. Perhaps you were trying to help, but this is the 21 century. Heck all you have to do is ask your questions. The problem is that most people don't know the basics well enough to know the answer that best meets their best interests, not the adviser's (very important distinction); and you forget about asking if the adviser knows the basics (many don't).
Read this: http://moneywatch.bnet.com/saving-money/bl...ag=content;col1
Share this topic:
Page 1 of 1