Albert Einstein once referred to compound interest as the 8th wonder of the world. Saying he who understands it earns it; he who doesn’t pays it. And he couldn’t have been more right. Today we’re going to be looking at the miracle that is compound interest and how can protect my retirement as it relates to the #1 killer of your wealth. Let’s get started. So the #1 wealth killer is debt. Yeah, I know, big shocker. But it’s really true and today we’re going to look at why that is.
The truth is, having too much debt can put a limit on your greatest wealth-building tool – your income. While it may be tempting to invest rather than pay off your debt, compound interest is a force to be reckoned with. In fact, I recently dedicated an entire video to its power. Financial advisors often use the example of Jane, who invests $100 per month ($1,200 per year) from the age of 18 to 25 and earns an average of 10% per year on her investments. By the time she stops investing at age 25, her nest egg will be worth just over $15,000.
However, before you start investing, it’s important to consider your debt load. Here are some reasons why paying off your debt first may be the smarter choice:
High-interest rates: Many forms of debt, such as credit card debt or personal loans, carry high-interest rates that can negate any potential investment gains.
Risk: Investing always carries some degree of risk, and if you have high levels of debt, taking on additional risk may not be advisable.
Stress: Debt can be a significant source of stress and anxiety, which can have negative impacts on your overall financial well-being.
Freedom: Paying off debt can give you a sense of freedom and control over your financial situation, allowing you to make better long-term decisions.
That being said, paying off debt doesn’t mean you can’t invest at all. Here are some steps you can take to balance debt repayment and investing:
Create a budget: Determine how much money you can allocate towards debt repayment and investing each month.
Focus on high-interest debt: Prioritize paying off high-interest debt first, as this will save you the most money in the long run.
Consider employer-matched retirement accounts: If your employer offers a retirement plan with a matching contribution, take advantage of it. This is essentially free money that can help you save for the future.
Seek professional advice: A financial advisor can help you create a personalized plan that takes your unique financial situation into account.
In conclusion, while compound interest is a powerful tool for building wealth, it’s important to consider your debt load before investing. Paying off high-interest debt should be a priority, but that doesn’t mean you can’t invest at all. By creating a budget, focusing on high-interest debt, taking advantage of employer-matched retirement accounts, and seeking professional advice, you can balance debt repayment and investing to achieve your financial goals.
Over the course of the next 45 years, those investments will continue to grow. Assuming that it continues to grow at an average annualized rate of 10% per year she will end up with $1.1 million in her portfolio at age 70. That’s all achieved with eight years of investing $100 a month. Jane becomes a millionaire by investing $9,600 of her own money. On the other hand, we have John. John doesn’t start investing at age 18. Instead, he starts at the age of 26 (just after Jane had finished all of her investing). He also invests $100 a month. However, unlike Jane, he does it from the age of 26 all the way until the age of 70. John invests $54,000 of his own money over the course of those years and ends up with a nest egg of just under $950,000. So John ends up with approximately $150,000 less than Jane. This is in spite of the fact that he invested six times more of his own money than she did.
It’s no secret that excessive debt can put a damper on your ability to build wealth using your most powerful tool – your income. While the concept of compound interest is widely known to be an effective way to grow your money over time, paying off debt may seem like a counterproductive move. However, it’s important to remember that not all investments are created equal, especially when you’re dealing with debt payments.
Let’s take a look at an example: Jane invests $100 a month for 7 years starting at 18 and ends up with a net worth of $1.1 million at the age of 70. Now, let’s say John starts investing $100 a month at the same age and earns an average of 10% per year, just like Jane. Even if John continues to invest until he’s 100 years old, Jane would still have more money than him, and her lead would only increase with time. In fact, at the age of 100, Jane would have $19.2 million to her name, while John would have $16.7 million. This just goes to show the power of compound interest, as famously called by Albert Einstein as the 8th Wonder of the world.
However, when it comes to investing, it’s important to consider the context of one’s financial situation. Comparing someone who is debt-free to someone who is not will not provide an accurate comparison. While Jane invested $100 a month for 7 years, John was dealing with debt payments and didn’t invest anything for those first 8 years. But what if John managed to free up an extra $200 a year, or less than $17 a month, by paying off his debts? In that case, he would come out ahead of Jane by the time they’re both 70. And if he freed up more money than that, he would pass Jane even earlier.
So, what’s the takeaway? While compound interest is undoubtedly a powerful tool, it’s important to also consider the impact of debt on one’s ability to invest. Paying off debt and freeing up funds for investment can ultimately lead to greater financial success in the long run.
And given the state of the average American debt situation, $17 a month in payments is a remarkably conservative estimate. According to articles in business insider,
CNBC, and Forbes the average American debt situation looks like this: About $9,000 in credit card debt which is
often split between several cards. $30,000 in student loan debt. And assuming a used vehicle was bought a little
over $21,000 on a car loan. That’s around $60,000 in total debt. If we assume 18% interest on the credit cards
and 4.5% interest on the other loans and terms of 5 and 10 years on the car loan and student
loan respectively, the minimum payments could be roughly $900 a month. Freeing up that much cashflow could make a
tremendous difference in the previous example. Let’s look back at John’s situation from before
and assume that his household’s debt situation was that of the average American. John uses his $100 a month of excess cash
flow to pay off these debts.
Based on the numbers it would take him roughly
six years to become debt-free. This is assuming he did not work any extra
hours or sell anything to get out of debt faster. Once he was debt-free he would have almost
$1,000 a month left over to invest. If he starts the process of becoming debt-free
at the age of 18 when Jane was starting to invest he would have become debt-free by his
24th birthday. If he then turned around and started investing
the full $1,000 a month he would actually be further along in his investments by his
25th birthday then Jane was. Granted this is largely because he has invested
more money than Jane has at this point. Jane by her 25th birthday had only invested
$8,400. That’s quite a bit less than John’s $12,000
but think of the potential payoff of this down the road if John keepS investing that
He’ll also likely be able to lead a much
better lifestyle than Jane in the present due to his lower monthly expenses. Jane may eventually equal him in that regard
if she gets her debts paid off, but for those first several years after John is debt-free,
it is worth noting. Remember, compound interest is an incredibly
powerful mathematical force. But it can work just as hard against you as
it can for you. So it’s important to make sure that compound
interest is your ally in your finances, not your enemy. So with that being said how do we avoid this
killer of wealth? First, if you’re lucky enough to not have
any debt right now research some ways to ensure that you keep it that way.
If you’re planning to go to college look into
ESA or 529 plans. They are ways to start saving for college
while lowering your tax burden (which is always a nice perk). Also, look into scholarship opportunities
or PSEO. Don’t be afraid to have a summer job and work
during the school year part-time. For the record, this can also be a good option
in high school to give yourself a head start financially so long as it doesn’t take away
from your studies too much. Make sure that you always have an emergency
fund. It should contain three to six months worth
of expenses so that you don’t have to take on debt for those moments when life happens. Make sure you have insurance for those catastrophes
that you wouldn’t be able to cover with your savings. Catastrophic health emergencies are a good
candidate for this.
If you’re already in debt, learn about how
people have paid off their debts. Then choose the strategy that is most likely
to get you (and keep you) completely out of debt. Three of the most popular strategies are the
debt snowball, debt avalanche, and debt tsunami. I have done videos on all three of those and
they will be linked in the description. The debt snowball is the one made famous by
financial personalities such as Dave Ramsey. It has you order your debts from smallest
to largest balance and pay them off in that order regardless of the interest rates on
those debts. The plus side is the momentum you can build
up for yourself by quickly wiping out those bills. The downside is it isn’t the most mathematically
efficient way to get out of debt, all else being equal.
The debt avalanche is the more mathematically
efficient option if you can stick to it. It has you order your debts from highest to
lowest interest rate and pay them off in that order. This is regardless of the size of the loan
itself. The upside is the fact that you’ll be paying
less in interest. The downside is in some situations it may
take quite a while to get rid of that first bill. For those who are more motivated by seeing
the balances of the debts themselves going down this may not be much of an issue.
For those that are more motivated by the lowering
of bills, this could be an issue in some situations. The debt tsunami has you order your debts
from the most emotionally stressful to the least emotionally stressful and pay them off
in that order. In some cases, this could mean paying off
the largest balance that also has the lowest interest rate first. However in my experience that is not commonly
how it goes. Most of the people that I’ve seen use this
strategy tend to use it because there are personal loans between family or friends that
are causing a lot of stress in the relationship. The person with the debt uses the tsunami
to get rid of that loan first and then often switches to a different strategy such as the
snowball or avalanche. Which is another viable option for many people. There’s nothing stopping you from starting
with one strategy that will help get you going and then switching to another that will work
for you longer-term.
I know a lot of people who have started with
the snowball to get themselves some momentum and then switched to the avalanche once they
were on a roll so that they could save on interest. Another thing I would recommend looking into
is the power of the debt snowflake. If you haven’t heard, the debt snowflake is
a strategy where you find ways to free up money (or just happened to find the money)
that you can put towards your debt payoff strategy. The nice thing about it is it works well with
any of the other three strategies I mentioned. While by itself it isn’t game-changing it
does help your primary strategy do its job a little better. And as we know every little bit helps. If you need more motivation make sure to check
out Dave Ramsey’s YouTube channel and their debt-free screams playlist.
It’s filled with a lot of amazing stories
of people paying off loads of debt on various levels of income and getting to see their
relief when they are finally debt-free is very inspiring. You might also find their Turning Points playlist
interesting. It is essentially interviews of people who
have become debt-free talking about what made them decide to go through that process and
achieve that lifestyle. I’ll leave a link to both playlists in the
description as well..
Old Mutual 0:00
Very few South Africans reach the end of their working careers with
enough money saved for their retirement. To help retirement fund members preserve funds for their
retirement, National Treasury has proposed a new two-pot system for retirement funds. Your future
retirement fund contributions will be allocated to two components. One is a savings component, the
other is a retirement component. For this example, we'll use the pots to illustrate the concepts.
When the two-pot reforms go into effect, your retirement fund will value
your existing retirement savings, and will allocate this amount to its own pot,
which the industry calls the vested component. The current rules will still apply to your existing
retirement savings. This money will be subject to the existing rights of access and existing
withdrawal tax tables. Then, 10% of this pot, up to a maximum of R30,000 will be allocated
to your savings pot and will be available for you to withdraw. Going forward, 1/3 of your future
retirement contributions will go into the savings pot. This pot is designed to be your lump sum at
retirement. However, in the case of an emergency, you'll be able to withdraw the money from
your savings pot once every tax year.
This amount will be taxed to your marginal tax rate.
Remember, any money withdrawn from your savings component before retirement will reduce your lump
sum at retirement. The minimum withdrawal amount will be R2 000. The remaining two thirds of your
future retirement contributions will be allocated to the retirement pot. To preserve your savings,
you won't be allowed to access this money until you retire. At your retirement, you'll have to
use it to buy a pension or annuity. The aim of this is to provide you with an income during your
retirement years. There are a few important things to note. The two-pot retirement system is to
be implemented on the 1st of September 2024. This will only affect your future retirement
contributions from this date.
If enacted, the two-pot system will affect pension funds,
provident funds, retirement annuity funds, and preservation funds. Your existing retirement
savings will be subject to the old rules, so there's no need to panic. Provident fund members
over 55 will have the option to stay and continue contributing to all their retirement savings
to their existing provident pot. The two-pot system will give retirement fund members access
to a portion of their savings in an emergency. This savings component will also be available as
a lump sum payment at retirement if you don't make withdrawals. At the same time, the majority
of your time and savings will be preserved to provide you with an income during your retirement.
If you have any questions about these proposals, and how they might affect you or your retirement
fund, please reach out to Old Mutual.
hi there Welcome to our gold investment video series in today's video we'll discuss a question we received from a follower how to set up solo 401k plan to invest in gold and real estate let's find out solo 401K is designed for self-employed individuals or owner only businesses it's like your personal retirement savings turbocharger allowing you to contribute as both employer and employee here's what to do in order to establish a solo 401K check your eligibility mainly no full-time employees except for yourself and perhaps a spouse choose a provider remember if you're keen on gold and real estate opt for a self-directed plan set it up complete the application choose your plan features and sign the agreement fund it in 2023 you can contribute up to $58,000 or even 64,000 $500 if you're 50 gold is a classic hedge against inflation and Market downturns offering diversification real estate on the other hand gives potential income and appreciates over time here's how to invest in gold through your solo 401K select IRS approved gold coins bullion ETFs or even stocks direct the investment through your solo for 01k provider remember physical gold must be stored in an IRS approved depository not your personal Locker here's how to invest in real estate through your solo 401K pick your property type residential commercial or even arits inform your solo for a1k provider and move the funds remember the solo 401k will own and manage the property not you gold and real estate have their benefits but they also come with risks be wary of price fluctuations and prohibited transactions and remember there are rules like the unrelated business income tax and distribution rules that apply navigating the journey to wealth requires knowledge discipline and diversification with a solo 401K you're in the driver's seat just remember for the best decisions consult a professional thank you for watching our video for more in-depth information about gold Iris up to date comparison of the top gold Ira companies special promotional gold Ira deals and a free gold Ira investment kit visit raremetal blog.com or click the link belowRead More
so what's the number one wealth killer that no
one is talking about I've just bought myself a brand new car so I got myself a mercedesbenz
GLC coup uh the 2024 one 220d so did I make a financial mistake yes I did I should know better
as a charted accountant by profession I know this things and then also when you look into the
spending household spending of many countries if you look into the US the graph shows that
number one spending for most people is housing and then number two is transport and also when
you look into the UK number one is housing and then people spend number two on transport and then
there's food entertainment and all sorts of things so also here in South Africa I remember before we
moved into this particular house uh our biggest expenditure had become the car because as a result
of this car it is a BMW a 420i because the house that we were staying in was even much cheaper but
now we've moved into an even more expensive house now making the house more expensive compared to
to the cars but many other people in South Africa have cheaper housing and then their transport is
more expensive because of the cars so let me give you my figures to prove why a car is a wealth
Destroyer so in terms of the car that I bought it's a 48 months l so this particular car my car
installment per month is around uh 23,000 rents and then converted to US doll it's around $1,280
us and then they still the insurance part of it that is around 2,000 rent so uh in US Dollars it's
uh around um 111 dollar and then there is your gas or your fuel so I can estimate that to be around
around maybe $180 I don't drive as much cuz I'm working from home and then there is your cost of
the tracker that's like uh a bit cheap I can say that's around like $1 $10 so over a 48 months the
amount that I would have spent towards this car that I would have paid towards this car only on
the installment is going to be around 1.2 million converted to US dollar that's around 66,6 s us
so you can just imagine after 4 years I would have paid this particular amount and then now
I give them back the car imagine if I do take this particular amount and I say that I'm buying
property every single month I will be paying um 1,280 towards a property and you know that with
a property majority of the amount is going to be paid by by the person who will be renting it
will be paid paid by the tenant and then come four years down the line I will still have a property
unlike with the car come four years down the line I won't have a car and guess what obviously I will
want another car I will buy a new car while with the property there will be someone who is paying
for it and the property does retain value while on the other hand your car depreciates all the
time the moment it comes out of the dealership it dep appreciate or another alternative I could
have invested uh this money into the unit trust every single month I put this money into the unit
trust and then it's growing or it's accumulating interest or I put it somewhere where it is uh
in carrying or getting more interest by the time it's four years time the money would have
retained its value plus it would have also made me some income or some form of Interest it would
have grown if I had maybe been putting it towards the share so you can just see how a car destroys
the world but my view is this when it does come to cars and housing obviously the same way I would
not want to stay in h a house even if it can be cheap I would still want a house that meet certain
requirements I would still want a house that I can be comfortable in so it also it's also the same
with a car when you are driving on the road you want to drive something that comes with that
particular kind of comfort particular kind of luxury but it's important to be something that
is within your means something that you can be affording because you know that interest sometimes
they can go up and if your money the money that you are getting is fixed while the interest is
going up it means over time you might not even be able to afford the car that is why my view in
life is that I need to be making more money I need to be making more money without necessarily always
increasing my expenses that's why one of the goals for this year as well is to get um more investment
properties as well and also to be investing more so as as much as I have bought a wealth Destroyer
I will also be purchasing something that is going to be building towards my wealth but these things
can only be achieved when one is making more money so if you are getting a fixed salary also just
look at what other things you can be doing what other side hustles you can be doing that can be
increasing now your money so that you can be a able to build your wealth so that you can be able
to build the system because it can be difficult to build the system if you don't know how to make
more money because the car prices they just keep going up every single year and even the secondhand
Market I feel like it's it's gone up even now it's even become so difficult now to afford a car I've
said this before the first car that I bought was um a polo in 2012 and I still have this particular
car for me I felt like the polo that I've bought was not a liability it feels like an asset so
if you like this video don't forget to like to subscribe to comment and to hit that notification
Bell stay blessed and see you next time
[Music] welcome to the retirement income show on Market Lane alongside the CEO and founder of Oak Harvest Financial Group that of course is Troy sharp Troy is a certified financial planner professional his team at Oak Harvest is incredible if you want to go to the website to learn more elk Harvest financialgroup.com Oak Harvest fg.com works as well a lot of great information on the website you can learn about Jared Kinney Ryan Kenny you can learn about Chris Paris Jessica canella the whole team there's just a phenomenal team Oak Harvest financialgroup.com and of course you can always go to the YouTube channel there's over 300 videos on there about any topic you can think about in the financial world the retirement world uh it's phenomenal and there's no cost you subscribe you'll know when all the new ones are out but there's no cost to any of that YouTube check out Troy sharp and Oak Harvest Troy's office located at 921 oral City Way I-10 and Bunker Hill they they are here for you if you need help they would love to help they just don't know if they can help until you reach out and you can do that just by giving them a call 800-822-64-34-800-822-64 34 today we're going to be talking the retirement success plan Troy is going to explain what this is and it's the process so it's about investment planning income planning tax planning health planning Estate Planning and they all go together Social Security and Medicare are in there as well you know you've done this for a long time you sat down with a lot of people so you kind of understand the common mistakes the common things that we Overlook as well this will be good going through the retirement success plan how are you going to inform us today of this retirement success plan well just like we have as humans we have basic needs right we have that hierarchy of we need shelter we need food we need security in retirement or once we get to retirement people have their the same concerns the same questions we all have the same let's call it fears do we have enough you know can you retire when can you retire how much can you spend when you do retire without the fear of running out of money we all want to pay less tax right the government can get their fair share but not a not a penny more and whatever that fair share is it's it's defined differently based on your plan so if you take the government's plan there they want to get as much from you as possible and the tax law is set up in a way that if you don't plan for taxes in retirement oftentimes we see people in situations where if they keep doing what they're doing 200 300 500 800 we sat down with a client prospective client recently and we're doing this analysis it was well over a million dollars in taxes if he kept doing the his way of things the way that his advisor had him doing it in regards to his income plan and tax plan and retirement well there was no tax plan obviously but his income plan was going to lead create this domino effect of his tax bill being over the course of time over the course of 25 years over a million dollars in estimated taxes that he was going to pay that he simply didn't have to pay if he went about a different approach the approach that I'm going to talk with you about today as far as step three of our retirement success process the tax planning aspect so just like we have basic needs as human beings we have basic concerns when it comes to retirement and we've created the structured process and that's the beautiful thing about the retirement success plan is it's a plan that is something that is actionable but it's also living and breathing it's something we will review with you throughout the year once you're a client but it's also a process and we believe in structure here we're really big on structure and process and that keeps us organized that keeps us on schedule and that keeps us ahead of the planning curve in order to do the things that we promise for everyone that's entrusted so much to us and I'm talking about your retirement you worked for 30 years 40 years 50 years in some cases and you save up whether it's five hundred thousand dollars or five million or 50 million you need a team of people that of course are knowledgeable but before education and certifications and designations and training and experience first and foremost you need somebody that cares okay if you start there with someone that's a fiduciary and not just you can be a fiduciary and still do the wrong thing I've seen it for years in the industry where fiduciary advisors still sell mutual funds that have high fees and commissions and they can make justifications for why they're selling them or why they think you're they're in your best interest I don't believe that they are personally um we would never put someone into a mutual fund that is charging a five percent front end commission and then you know has two or two and a half percent of hidden fees and we've seen that for for years coming from fiduciary firms fiduciary advisors so you start with from Ground Zero are you working with somebody who truly cares who's truly passionate about retirement so with that philosophy in mind that's the foundation of of what we look at when we hire people here at Oak Harvest Financial Group you could have all the designations in the world all the education all the experience but if if you're arrogant if you're not humble if you're not hungry if you're not continuing strive to be continuing to strive to be a better person we don't want you to work here because that foundational element do you care about the people that you're working with on a human level if that's not there then you know we don't want any part of that type of person I don't care how much you produce how what the metrics are when it comes to how we measure advisor performance so that's the foundation now once you have someone that cares you want a structured process in place to deal with those big questions that you have the big concerns that you have so do you have enough yet it's not just a yes or no question it's a function of how much do you spend what is your health situation if you're healthy yes of course you're going to live longer most likely but are you planning for the increased medical costs in increased probability of needing long-term care or Assisted Living these are aspects that healthier people do have to absolutely be concerned about those that are less healthy it's less likely you're going to have a two or three year four or five year stay in a long-term care facility or need nurses in the home so when we talk about do you have enough and can you retire these are all the answers to those questions are function of how much do you spend what is your longevity what is your health situation your of course your family history um but not only that it's what are we doing with the other aspects of this process meaning the income planning side the tax planning side what about the health care side you know are you retiring before Medicare do we need to look at some type of Health Care planning that qualifies you to receive a subsidy so you're not paying two thousand dollars a month for both spouses for health insurance that maybe we get it down to 400 a month or 600 a month or maybe no out-of-pocket costs whatsoever for health insurance premiums you can do that with proper planning but you need the right type of asset structure meaning if you have all your money in retirement accounts this is where tax planning comes in when you take money out that goes on to your 1040 your tax return and then you probably aren't going to qualify for as big a subsidy as if you had money saved and non-ira accounts so this the structuring of income planning tax planning Health Care planning and then of course the estate side of things this is all what the oak Harvest retirement success process the retirement success plan is and that's what you receive when you become a client it is a very clear and structured process that we go through but then it's also a plan that is living and breathing and we're making adjustments as time goes on tax law changes economic conditions change goals change your spending levels will change it retirement is and we've only learned this you know from years and years of experience the best delayed plans we can't just set him and forget them you know plans need constant monitoring just like a plant or a garden or you know a human being so the retirement success process we're going to get into today to to today we're going to focus on the first three steps the first step is risk management and investment planning next step is income planning so income planning is social security when do we take that it's not just based on the math which it does play a role but when we start to look at are you a conservative investor okay versus an aggressive investor investor that plays into the Social Security election decision of course your Health and Longevity plays in market conditions okay are we in a recession when you're thinking about taking social security are your accounts down 20 30 percent or did we have a really really good year last year and it looks like we're gonna have a good year this year all of these factors kind of tie in to that income planning component as well as many other we're going to talk about and then the big one we're gonna we're gonna get into is tax planning that's step three of the retirement success process and when you start to understand that retirement is a set of dominoes when you're young you work you put the kids through school you deal with traffic you deal with bosses you deal with if you run your own business all the headaches that come with that you deal with so many different things money is really really simple it's life that's complicated in the accumulation phase once we get to retirement now life gets a little bit more simple it's the money it's the decisions you have to make and the realization that every single decision you make how you invest the portfolio impacts not not only how much income you can take today but how much income you can take down the road the sequence of returns risk based on how you've invested sequence of returns is if the market goes down and you're also taking money out you exacerbate that downturn in the market because there's no paychecks coming in you're you're pulling money out and losing in the market so these decisions every single one that you make it's a domino effect it impacts everything else it impacts the tax plan it impacts the income strategy can impact the health care it can impact absolutely the estate plan so we walk you through this process so we have a plan in place we call it the retirement success plan and the goal is for you to have security first and foremost but what I find most often is the outcome is that people feel more comfortable they feel more secure and they're able to enjoy retirement a bit more because they've they have a plan in place that addresses all these certain needs but also through the continual monitoring and adjusting and conversations one thing I love about our process is when someone comes to us and we have that first meeting where it's just get to know you you know no pressure no obligation no cost we get the information we do an analysis between that first and that second visit and then when we come back on that second visit you actually get to see what it's like to be a client at Oak Harvest Financial Group because that second visit with us we're starting to go through the foundation of a financial plan we're starting to discuss the decisions that you have to make not only this year but in the future so that's almost exactly what it's like to have an annual review with us or a semi-annual review with us so I love that about our process is that you get to see before you ever decide to become a client what it's like to actually be a client when we have up on the big television screen all of the information the choices you have to make the impact of making different decisions how it impacts your taxes how it impacts your income how it impacts your account balances when we do a sensitivity analysis and and show you okay this outcome in the market and this outcome for income decisions versus this one here are the possible outcomes for those choices and that those combination of choices so you get to see what it's like to actually be a client just through our normal process of going through that first second and third visit with us many Engineers it takes a little bit longer than that sometimes it's four or five visits but our goal is to Simply provide value we want to make deposits in your life we want to provide value and you know people see that value and they say you know what I think you guys could be a great part of my financial team my retirement team and yes I want to work with you Troy so if that's you if you don't have a retirement success plan if you don't have a tax plan income plan if you don't understand the guard rails what I'm going to get into in this next segment as far as risk management in retirement give us a call we want you to leave a message there's no one here working on the weekends if you're watching this on YouTube if you're listening to this later and it's during the week sure give us a call someone will pick up but we want to have a conversation just to see what's important to you who you are if you're a good fit for what we do and of course you can ask questions to see if we're a good fit for you and then we'll schedule that first visit there's no cost no obligation we can do it through Zoom we can do it in person at the office right here at I-10 and Bunker Hill in Memorial City and that first visit we'll have a cup of coffee a glass of water and just get to know each other and if we are a good fit at that point we'll get that second scheduled we'll do the analysis that I talked about and we'll walk you through that retirement success process so you can have those big questions answered do you have enough can you retire and how do you pay less tax 1-800-822-6434 1-800-822-6434 Oak Harvest Financial Group check out the YouTube channel check out the website Oak Harvest Financial Group so when you think about this this is what I think you should really like about it it's you're working with the team at Oak Harvest for your retirement right to coming up with that retirement success plan you're the CEO it's your retirement look at Troy and the team at Oak Harvest as your Chief Financial Officer here to help guide you you're going to make the decisions they're going to give you the choices right and it's up to you because it is your retirement it's your hopes and dreams your bucket list and all of that it's really important though that they understand your feelings your thoughts your hopes your dreams it is about you so you've got to talk to them and they're here to listen and they're here to help again that number is 800-822-6434 risk management how important is it what actually is it Troy we'll explain when we come back this is the retirement income show with Troy sharp out of Oak Harvest Financial Group back right after this investment advisory services offered through Oak Harvest Financial Group LLC Oak Harbor's Financial Group is an independent Financial Services firm that helps people create retirement strategies using a variety of insurance and investment products investing involves risk including the loss of principal any references to protection benefits or lifetime income generally refer to fixed Insurance products never Securities or investment products insurance and annuity product guarantees are backed by the financial strength and claims paying ability of the issuing insurance company Oak Harbor's Financial Group LLC is not permitted to offer a No statement made during this show shall constitute tax or legal advice you should speak to a qualified professional before making any decisions about your personal situation we are not affiliated with the US government or any governmental agency this radio show is a paid placement foreign [Music]Read More
Hello, and welcome to my latest video, where
we're diving deep into the realm of retirement planning. Whether you're approaching retirement or already
savoring the golden years, this video is tailor-made for you. I'm your host, Siddarth Tummala, and today,
we're unlocking the secrets to financial security in retirement. But before we dive in, if you haven't already,
please hit that subscribe button, and if you like my content, show me some love by hitting
the like button as well. And don't forget to check out my website down
below for more information. Now, buckle up, and let's embark on this journey
together! Our first stop on this financial adventure
takes us to the heart of retirement planning – optimizing 401(k) and IRA accounts.
Now, when it comes to 401(k)s, it's crucial
to maximize your contributions. If your employer offers a matching contribution,
strive to contribute enough to capture that full amount. However, not everyone can do this all the
time. Luckily, catch-up contributions exist. This allows people 50 and over to contribute
an extra 7,500 dollars on top of the standard limit, allowing you to “catch up” on the
investments you missed earlier on. For our friends with Individual Retirement
Accounts or IRAs, explore the options of Traditional or Roth. Each has its perks, and the right choice depends
on your unique circumstances. A Traditional IRA may provide a tax deduction
now, while a Roth IRA offers tax-free withdrawals during your retirement. Onto the big problem, healthcare costs – a
topic that can be a source of stress for many retirees. Fear not, as we're delving into invaluable
insights on managing healthcare costs during retirement, ensuring your savings remain robust.
First and foremost, educate yourself about
Medicare and supplemental insurance options. Understanding what's covered and what isn't
can save you from unexpected expenses. For example, procedures such as cosmetic surgeries,
fertility treatments, or laser eye surgery are not covered by most insurance companies. However, it depends on your insurance company
for what procedures are covered as each company has its own rules. Additionally, consider health savings accounts
or (HSAs) for tax-advantaged savings to cover medical expenses. These accounts allow you to dedicate your
money to a savings account that grows tax-free.
Then, if a medical issue arises, you can withdraw
money tax-free to help pay off medical expenses. Similarly, there are also other ways to proactively
reduce medical bills. Embracing a healthy lifestyle can be a viable
approach to reducing healthcare costs. Regular exercise, a balanced diet, and preventive
care can contribute to both physical well-being and financial resilience. Now, let's talk about everyone's favorite
topic – maximizing Social Security benefits! It's a crucial income source that, with a
bit of strategic planning, can be optimized for your financial benefit. First off, timing is key. While you can start claiming benefits as early
as the age of 62, delaying until the full retirement age (usually between 66 and 67)
or even later, to a maximum age of 70, can significantly increase your monthly benefits.
Patience can pay off! Another tip – consider the taxation of Social
Security benefits. If you have other sources of income, a portion
of your Social Security benefits may be subject to income tax. By delaying your social security benefits,
you can tap into your other assets first which will provide you with less taxable income
during your retirement. Understanding the tax implications can help
save and prepare you for unexpected expenses. And there you have it, – a comprehensive
guide to essential retirement planning strategies. From optimizing your 401(k) and IRA accounts
to managing healthcare costs, and maximizing Social Security benefits, these key steps
can pave the way to a worry-free future. If you found this information valuable, don't
forget to hit the like button, subscribe to my channel, and share your thoughts in the
Remember to stay financially savvy!.Read More
– Fidelity offers zero fee index funds. Can you believe it? They're such a kind,
privately held company that's willing to give
up a bunch of profit to help out the little guy
investor like you and me. – So you're telling me
there's a chance? Yeah. – Ah, not so fast. – What?!
– As with most things, there's a bit of a catch, and the Fidelity zero fee
index funds are no different. So, let's go through what you need to know about these things, then we'll stack up each one
to its fee based competitor. Before we get too deep into it, I need to say that I am by no means implying that you should
sell these index funds if you currently hold them. You could be investing in
much worse financial products, like anything that Cathie
Wood has her name attached to. I'm basically going to be giving you a peak behind the curtain of
these zero fee index funds to show you what isn't so
obvious on the surface, In 2018, Fidelity started offering four different index funds where they charge you $0 to own them.
These four funds consist of
a large cap, total US market, extended market and
international index fund. At first glance, this seems
like an odd thing to do, because they already offer
an S&P 500, total US market, extended market and
international index fund where they charge you to own them. Yes, the fees for these funds
are extremely cheap as it is. But by offering these zero fee funds, they're in direct
competition with themselves.
I can promise you they're not doing this out of
the goodness of their hearts. To help uncover why they're doing this we just have to follow the money, but not the money that they
don't make from these funds, the potential money that they could make in other areas of their business by offering you these zero fee funds. These funds are what you would consider to be a loss leader for Fidelity. Kind of like how Costco sells their rotisserie chickens for a loss to the tune of being out $30,000,000 to $40,000,000 per year. The goal for Costco, and
Fidelity in this case, is to get you into their ecosystem so that they can sell you on more profitable products and services. If you are already through
the doors of Costco to buy your unhealthy, corn-fed,
GMO, rotisserie chicken, then you're more likely
to buy additional items. If you are already investing
in Fidelity's zero fee funds, then you're more likely to use them first if you are looking for
a financial advisor, annuity, life insurance
or more expensive funds. This of course won't
work for every customer.
But the lost leader business model doesn't need to have a 100% success rate. They just need a small portion of people to buy these more expensive
products and services. Once Fidelity has you in the doors and investing into their funds, they lock you into
their umbrella even more by penalizing you if you wanna move to a
different investment platform. These Fidelity zero
fee funds are exclusive to their investing platform and cannot be bought on or transferred to any other platform. With their other fee based index funds, you can transfer those out of Fidelity and onto any other platform like Vanguard, Charles
Schwab or any of the others. They'll usually come with a transfer fee, but this is par for the
course no matter where you go and which fund you decide to move.
With these zero fee funds,
you have to sell them if you wanna move your
investment somewhere else, which means that you might
have to pay capital gains taxes if they're held within a
taxable investment account. It might not be a big
deal to you right now, but if for some reason
at a point in the future you become unhappy with
Fidelity, then you're screwed. Before I tell you my biggest issue with these zero fee funds, please help and support this channel, and my dog, Molly, who
actually just tore up her leg and had to get stitches, by
hitting that thumbs up button.
The word index fund
gets thrown around a lot by these large investment
institutions nowadays because of how successful
they've been over the years. At this point, a lot of people understand the power of investing in index funds. But not all index funds
are created equally, and it's not so obvious unless
you know what to look for. Technically, you could create your own custom stock market index. And if I wanted to create a
fund that tracks your index, then I could call it an index fund. The problem is that you are
most likely an unknown person with an unknown track record
and an unproven process. There's a couple levels of trust that need to exist
within this whole process between the financial index provider, the index fund and the investor. My fund needs to trust
your indexing process, and the potential investors within my fund needs to have some level of trust in how my fund attracts your index. There's a few different well-known and trusted
financial index providers that index fund creators like Fidelity, Vanguard and Charles Schwab pay a licensing fee to to create their fee based index funds.
The Fidelity zero fee index
funds are a lot different in that they don't want to
have to pay the licensing fee to these trusted index providers because they need to cut corners to reduce the cost to run their funds. Because if they're still
doing a bunch of work and you are not paying
them to do that work, they're gonna cut corners
wherever they can. But they still need to
track some sort of index to be able to call
themselves an index fund. To do that, Fidelity has created
their own internal index, which is what their zero fee funds track.
This might not seem like a big deal, but their indexing methods haven't been around for very long, which means that they are unproven. I'm also not sure how
I feel about Fidelity creating the index that
their zero fee funds track. Having an unassociated
third party index provider at least gives a little
bit of separation of power within the whole process. To show you why I'd prefer 75% of the fee based Fidelity index funds over the zero fee index funds, let's compare them against each other so I can show you the biggest differences. For the total market index we have the zero fee index fund FZROX and the comparable fee
based index fund FSKAX. The stock style for both are pretty close so there's really no issue there. Next, we can look at the
total holdings for each one. The zero fee fund holds 2,655 stocks, while the fee based fund holds 3,998. For me, I want my index funds, especially my total market index funds, to hold as many stocks as possible.
The zero fee fund fails to do this. Lastly, the portfolio turnover
for each is different. This is important to know because the higher portfolio turnover means more stocks are
being bought and sold which is going to cost you money. The zero fee fund is at 4%, while the fee based fund is at 3%. Not a huge difference, but for me, I prefer to keep
this as low as possible. I also like the option
of investing in the fund that charges 0.015% to track
a larger number of stocks, instead of only sampling 2,600 stocks like the zero fee fund does. For the large cap index, we have these zero fee index fund FNILX, and the comparable fee
based index fund FXAIX. The stock style for both of these are pretty darn close as well so there's nothing too concerning here. Since both of these are large cap only we see that the total
holdings are about the same, which it should be. For the portfolio turnover, we see that the Fidelity
S&P 500 index fund is at 2%, while the zero fee
large cap fund is at 5%.
I personally choose to
pay the extra 0.015% to hold the true S&P 500 index fund. We see the biggest divergence with the extended market index funds. For this comparison we have these zero fee index fund FZIPX and the fee based index fund FSMAX. As you can see, the stock
styles are way different. The stock style for FSMAX is more in the mid and small cap range with a tilt towards growth. FZIPX is more in these small cap stocks with a tilt towards value. The sector breakdown
for the fee based fund has more money going into technology, while the zero fee fund has more money going into
everything else except tech. Once again, the fee based
fund holds more stocks, which I like, at 3,703 of them, while the zero fee fund
only holds 2,143 stocks. The turnover ratios make me
sick just looking at them. 18% for the fee based fund
and 25% for the zero fund. I am not a huge fan of
any extended market funds, so I prefer to stay
away from both of these. The last zero fee fund that we have is the international index fund FZILX. We'd wanna compare it to the fee based international
index fund FSPSX.
Stock style for both
are basically identical. The sector exposure between them both are all over the place. So, I'll throw up a screenshot so you can pause the video
to see it for yourself. The holdings are a lot
different than you'd think. The zero fee fund holds 2,377 stocks, while the fee based fund
only holds 832 of them. One of the big reasons the
zero fee fund holds more stocks is because it encompasses both developed and emerging markets, while the fee based fund
excludes emerging market stocks and only focuses on developed market. Believe it or not, I kind of like the zero fee
international index fund a little bit more because I prefer developed
and emerging market stocks to get more diverse exposure. The only things I don't like about it is the 8% turnover ratio, as well as the fact that you're kind of stuck
in the Fidelity ecosystem if you hold these zero fee fund. Make sure to hit that thumbs up button to support the channel before you go. If you wanna see my preferred
Fidelity index funds or Vanguard ETFs that you can purchase on the Fidelity platform, then watch these videos to your left next.
I'll see you in the
next one, friends. Done..
Welcome, everyone, thank you for joining us today. My name is Ewelina Caplap, Wealth Management operations manager at Coastal Credit Union, where we bank better to live better. Today, we will be sharing with you three retirement savings tips before year end. So hopefully today you will come out of this session with some great action items. Joining me today are David Burk, CFS financial advisor, and Drew Snider, CFP, director of financial planning here at Coastal Credit Union. Welcome to you both. So before we get into our exciting conversation, we will very quickly cover our disclosure slide. Coastal Credit Union contracts with CUSO Financial Services to offer investment products to its members, which can fluctuate with market activity and potentially have some risk. So getting into our exciting conversation today about three retirement savings tips for year end. At this time, let's talk about tip one. Tip one, Roth IRAs. We hear about Roth IRAs quite a lot and the potential tax free income they provide. David, why don't you start us off with a little bit about what this tip is? Thanks, Ewelina.
A Roth IRA is an IRA that you're actually using after-tax dollars to invest in a credit union or an investment Roth IRA and letting that grow tax deferred so that after age 59 and a half, you'll be able to withdraw money out of that account that is 100 percent tax free. That's a huge financial and tax benefit that you should certainly consider before year end. Why don't you add a little bit more to that, Drew? Yeah, the Roth IRA is is definitely the greatest savings tool we have for retirement. As the illustration shows, the seed for our tree is what's getting taxed. And then you grow this beautiful tree with all this great money on it and you get to take the money off and you don't pay taxes on the money.
So it's fantastic and everyone should consider if they can do it or not. The beauty of looking at a Roth IRA going into December is you have a vision of what your income is for the year and you have limitations on contributions based on what your income was for twenty twenty one. So if your income is basically under about one hundred twenty five thousand dollars as a single person or one hundred ninety eight thousand dollars as joint filers, you should definitely be looking at a Roth IRA and coming into the credit union and talking to us to see if it'll work for you. That's excellent. What a great first tip to consider taking care of before the year end. So we're now going to move over to tip number two, and we're going to talk about some 401(k)s. What can you tell us here, David? 401(k)s are offered typically through an employer or as an employer sponsored retirement plan. They've been around for quite some time now, and many employees should be taking full advantage of this retirement savings.
And again, since we're now getting towards the end of the year, it's always a benefit to evaluate your income at this year, like Drew mentioned in the previous slide. But then also what your income will be next year and give yourself a savings raise of trying to increase your savings. Drew, I'll let you expand more about the comparison of Nick versus Maria and what their savings has done over time. Sure, I'd be happy to. This is a very simple graphic of two individuals who make the same amount of money and started off saving the same amount of money, the same percentage to their 401k plan. Nick maintained that savings rate, whereas Maria, each year, increased her savings rate by one percent or her contribution rate by one percent to her 401k plan until it maxed out at 15 percent.
And you can see that over time, Maria had quite a bit more money. This is after 30 years. She had twice as much money for retirement as did Nick. And you know what? You don't really need to concentrate on anything other than the fact that that right bar looks a lot bigger than the left bar. So with proper planning, we can help our viewers get there. Yeah, just one more comment here. Before year end, everyone should take a look at their 401k statement and see if they maximized. If they're trying to maximize the amount that they can contribute, they should take a look at that and see if they've been able to do that this year, because a lot of people may think that they are maximizing their contributions when in fact they haven't.
Right? Good point. And another thing, I'm not sure if we mentioned it, if you have a Roth 401k option on your plan, if we're talking about a Roth IRAs, certainly Roth 401k option is something that our viewers should be looking into. Can either one of you speak to that for a minute? Yeah, that's an interesting comment, Ewelina, because that's still relatively new in the marketplace and offered through employer 401k plans, but the numbers are astounding how few people are really taking full advantage of that Roth opportunity in their 401k. And what that means is, you can actually contribute more towards your Roth 401k than you can a Roth IRA outside of your employer-sponsored plan. Plus, your income is not a restrictive factor in being able to contribute to the Roth 401K plan. And just add to that, I would encourage anybody, even high income people who really do like the tax deduction that they're getting from their traditional 401k contributions. It's not an either/or situation. You know, if you're not doing either traditional or Roth, you can do some in both.
Personally, I do some in both of mine. I do some in the traditional and I do some in the Roth in my contributions. I do the same thing on my own planning as well. Well, certainly a lot to take in and consider for year end. So we're going to move on to our final tip. Tip three. Health savings accounts, right? HSAs. And who doesn't like the sound of triple tax savings? So, David, what don't you tell us a little bit about that first? The triple tax saving on a health savings account is phenomenal, and many people have completely overlooked this opportunity for their own household and and being able to save tax free money. So what ends up happening. If your employer offers you a high deductible health account, then you can participate in an HSA.
And what you're able to do is contribute on an individual basis or as a family, and that money can be tax deductible as far as the contribution. Once that money is in your HSA, it grows tax deferred. And then when you're ready to start withdrawing money from an HSA for a qualifying medical or health care expense, it's one hundred percent tax free as a distribution. And I want to comment here. As as you come to the year end, some employers are going to contribute some money to your HSA for you. You can add the rest up to the maximum. And you have until April 15th to do that. But the year end is a great time to take a look to see how much your employer has put into that plan for you. And then what is the calculation? What's the amount that you can add to it? Because you can reduce your taxes in your 2021 tax return, you get tax deferral and you can take the money out tax free for qualified health care expenses.
Excellent. So it sounds like there's a lot to get done here working with Team Coastal. So who are we right? Who is Team Coastal? Drew, can you talk to us about how we can help our viewers in meeting these three tips? Putting them into action? Yeah. Whether you're talking to Coastal Wealth Management about these concepts that we talked about today, or if you go into the branch, the credit union, you're going to get a team of experienced people that are going to be able to help you make your contributions, maximize your retirement. At Coastal, they're going to talk to you about your savings account options and Wealth Management.
If you have a more longer term perspective, we're going to show you some investment options for your IRAs. And then, you know, one thing about Coastal Wealth Management is, you know, we have lots of options to help you to find a great solution that you're comfortable with. That fits your risk tolerance and your needs, and we're all working together. So whether you talk to someone at the branch and you tell them, Hey, I'd like to get a better rate of return, than you're offering in that savings account, they're going to bring us into the conversation with Wealth Management so we can talk to you about how we can help. So we're all working together at Team Coastal. And then obviously, if you want to do a financial plan with us, we'd be happy to help you with that. Absolutely. And speaking of that financial plan, for our viewers, if they are not aware, it is a complimentary financial review to meet with our team and discover all the options available to you with Team Coastal, whether that be something that our retail team can help you or our Wealth Management department specifically, we all work together and can hopefully help you reach your goals.
Schedule your complimentary Financial Review with us today. You can call us at 919-882-6655. You can certainly send us an email [email protected]. And of course, you can find us online as well. There are some action items to take here with these three tips before year end. We're happy to help you with that. Thank you again… David Burke, CFS financial advisor, one of our dedicated advisors for being with me here today, and of course, Drew Snider, our financial planning director here at Coastal Credit Union. Thank you for your time today and thank you to our viewers for joining us.
And reach out to us. We'll be happy to help you..Read More
in a volatile Financial landscape imagine having an asset that's been a beacon of stability for Millennia gold are you amidst a career shift or contemplating your retirement security you're not the only one many of us are haunted by the uncertainty of our financial future but there's a gleaming Ray of Hope a gold Ira as you contemplate career changes or even setting up a regular Ira think about the potential of diversifying with gold transitioning from a 401k to a gold Ira is more straightforward than you think especially when you align with the industry's best leading gold Ira providers are not just reliable pillars they're equipped with a myriad of irs-approved precious metals ready to ensure a seamless rollover experience isn't it time to offer your savings the Golden Touch and shield them from the tempestuous tides of the stock market what's a gold IRA rollover ever wondered what a gold IRA rollover is let's dive deep and simplify it for you you can invest in physical gold gold provider stock a gold growth fund or an exchange-traded gold fund the gold must be stored with an IRS approved trustee away from your home thinking about rolling your existing retirement assets into a gold Ira that's a bit more complex and might cost you a bit more you'll need a self-directed IRA for that this special account allows you to invest in a wider range of assets bits then comes the custodian a trusted entity to help set up and manage your gold account they should be federally and state approved and importantly able to store that Shiny Gold for you and lastly to actually get your hands on physical gold you'll need a broker your trustee might know a few good ones picking a broker is crucial they ensure that the gold meets all necessary government standards for inclusion in an IRA at a minimum you want your broker to have the following characteristics certifications ensure your broker is equipped with all vital licenses bonds and insurance to protect your investment record reputation is key look for positive reviews check if they're endorsed by the Better Business Bureau and ensure they have minimal complaints attentiveness your broker should prioritize your needs familiarity with tax laws governing IRAs and a willingness to work closely with you are Essentials the truth about a gold IRA rollover a gold IRA rollover is your Bridge it allows you to transfer your retirement savings steering them into the radiant domain of precious metals here your Investments take a tangible form from gold and silver coins to magnificent bars and bullion but it's not just about ownership it's about security every precious item you invest in Finds Its place in an IRS approved depository safeguarded for your future can I roll my 401k into gold Ira an existing 401K can indeed be converted into a gold Ira or another precious metals Ira to make the switch there's one primary step leaving your current job is essential before making that 401k leap into a self-directed IRA with your newly rolled over funds you can invest in a glittering array of gold and silver assets diff difference between a gold IRA rollover versus gold transfer when diving into the world of gold Investments it's essential to understand the difference between a gold IRA rollover and a gold transfer a rollover is specific to certain situations maybe your employer's retirement plan administrator has shifted or perhaps you've left the company managing your finances even significant changes to your company's pension can trigger a rollover but not all rollovers are made the same there's the direct rollover and the indirect rollover direct rollovers involve assets moving seamlessly from a qualified retirement plan like a four on one k straight into an IRA it's like a relay race passing the Baton directly from one Runner to the next you don't touch the asset until it lands safely in its new home the indirect rollover sometimes called the 60-day rollover to technique has a bit of a detour here the investment reaches your IRA within 60 days of its withdrawal think of it like a layover on a long flight the investment might first be sent to your checking or savings and from there you'll transfer it to your new IRA benefits of rolling over a 401k to an IRA one strong choice is rolling over your 401k into an individual retirement account or IRA it offers flexibility and a wide range of investment options transfer your 401k to your new employer's plan if they have one it's a straightforward path but may limit your investment choices feeling tempted to cash out think twice taking the money now means paying taxes and facing a withdrawal penalty or you could just let it be if your previous employer allows it's the do nothing approach but remember to keep tabs on those funds lower fees with each step on the 401K Journey the byte of management and administrative fees can slowly diminish the green of your savings as these funds can be pricier than the average the money you hoped would grow might just trickle away add to this storm the general annual costs from the Giants who manage these plans of course the Majestic fortresses of 401K plans armed with Millions can access exclusive corridors with fewer costs with an IRA while there will still be expenses you're in the driver's seat you get to choose how where and what to invest in all while having greater control over the fees you shell out lower fees greater control your Investments your way take the key to a brighter financial future more cash incentives these financial institutions with open arms and eager eyes might tempt you with a golden handshake to transfer your retirement funds to their vaults and if Hard Cash isn't the song they serenade you with watch out for the melodious offers of free stock transactions and more relaxed rules on the other hand the Internal Revenue Service or IRS has standardized rules for IRAs this means that an IRA from One bank will have the same rules as an IRA from another another advantage of controlling your tax withholding with an IRA is that your retirement money isn't depleted faster than necessary this allows your Investments to continue to grow compounding tax deferred more investment options ever felt limited with your 401K investment options most 401ks offer only a handful of mutual funds often from just one supplier imagine a world with more freedom in your investment choices from Individual stocks to bonds to exchange traded funds ETFs the possibilities are almost endless more options mean more flexibility to tailor your portfolio to your unique needs and aspirations easier estate planning there's a high chance that after you're gone your hard-earned 401k might just be handed over in a single transaction a lump sum convenient but not necessarily tax friendly most companies prefer the quick Handover primarily so they don't have to manage the account of an employee who's no longer with them on the flip side inheriting an IRA isn't tax-free either IRAs come with more distribution choices it's like being handed a menu giving your beneficiaries options looking for more information with a team dedicated to finding the latest news and information for gold and precious metals IRAs the retired veteran is your 12 son One Source to help you with your investment Journey Don't forget to check them out you can find the link belowRead More