Help with finance....

His options are:

1) Let it sit right where it is until he's ready to use it. Pro: he doesn't have to worry about it now, and he can always move it whenever he's ready. Con: He can't change the investments within the 401K.

2) Roll it over into an IRA. This is the best option in my opinion. He can roll it over into the IRA and continue to let it just sit there if he wishes. Or he can make changes to the investments held within the IRA. Or he can even begin withdrawing funds to use (he needs to be at least 59 and a half years old to avoid costly penalties).

When talking to the bank, keep this in mind:

They're going to give him lots of great options, but all of those options will be with THAT bank. Just about all the options the bank presents will also be available through Fidelity, Vanguard, Liberty Mutual, and all kinds of other financial companies. My advice: talk to the bank and find out the options. But ultimately, roll the funds into an IRA with Fidelity or Vanguard. Their funds have the lowest expense ratios in the entire business.

I personally don't like investing in annuities, they do guarantee an income stream, but fees can be costly. And I like to manage my own investments. But if you're willing to pay the fees, an annuity and it's steady income stream can give peace of mind. To each his own. (if your Dad isn't ready to start using the cash yet, then DEFINITELY don't get an annuity until he's ready to start using the money).I agree with most of what you said but I think banks now have financial reps. who are sreies 6 & 63 lic.which can sell these fund families. I also see we agree on the annuities.

His options are:

1) Let it sit right where it is until he's ready to use it. Pro: he doesn't have to worry about it now, and he can always move it whenever he's ready. Con: He can't change the investments within the 401K.

2) Roll it over into an IRA. This is the best option in my opinion. He can roll it over into the IRA and continue to let it just sit there if he wishes. Or he can make changes to the investments held within the IRA. Or he can even begin withdrawing funds to use (he needs to be at least 59 and a half years old to avoid costly penalties).

When talking to the bank, keep this in mind:

They're going to give him lots of great options, but all of those options will be with THAT bank. Just about all the options the bank presents will also be available through Fidelity, Vanguard, Liberty Mutual, and all kinds of other financial companies. My advice: talk to the bank and find out the options. But ultimately, roll the funds into an IRA with Fidelity or Vanguard. Their funds have the lowest expense ratios in the entire business.

I personally don't like investing in annuities, they do guarantee an income stream, but fees can be costly. And I like to manage my own investments. But if you're willing to pay the fees, an annuity and it's steady income stream can give peace of mind. To each his own. (if your Dad isn't ready to start using the cash yet, then DEFINITELY don't get an annuity until he's ready to start using the money).

Sounds like very good info, my dad has banked at this bank for the past 42 years. And he is very old school in his ways, so being that he would be stuck at that bank to him would be better than going to fidelity or somewhere else. I am trying very hard to break him of that train of thought, but he is very, very stubborn.

When I say that my dad is old school, I mean he will not up grade his checking account to a free intrest checking account. Because they offer only 0.5%, but I tried to tell him that it will not cost you anything and the ammount that you have in there you will be getting free money from it. But no he just wont do it...

I agree with most of what you said but I think banks now have financial reps. who are sreies 6 & 63 lic.which can sell these fund families. I also see we agree on the annuities.

A lot of the times, this is true, except the reps charge a brokerage fee. If you buy straight from Vanguard or Fidelity, you skip that fee completely.

Sounds like very good info, my dad has banked at this bank for the past 42 years. And he is very old school in his ways, so being that he would be stuck at that bank to him would be better than going to fidelity or somewhere else. I am trying very hard to break him of that train of thought, but he is very, very stubborn.

When I say that my dad is old school, I mean he will not up grade his checking account to a free intrest checking account. Because they offer only 0.5%, but I tried to tell him that it will not cost you anything and the ammount that you have in there you will be getting free money from it. But no he just wont do it...

Funny, my dad's like that too. Since that's the case, he might be subject to some higher fees at the bank, but he'll really appreciate the customer service and he'll feel more comfortable.

When it comes to money and retirement, you're not just looking to secure the future of your money, but you're also looking to secure a little peace of mind. Nobody wants to have to worry about their cash. So if your dad trusts this bank enough to stay there for 42 years, he'll probably gain that peace of mind by dealing with them. The higher fees are probably worth it in his case.

If you know you're going to be dealing with this bank, just do your best not to let them hem you into one product or another. Get them to tell you about all the options. Ask if they can provide an IRA for him to roll his money into; and get them to explain it. Ask about annuities and get them to explain them thoroughly. Make sure you ask about the tax advantages of each investment vehicle.

A lot of the time, a bank will have a certain product (perhaps an annuity) that they make a lot of money off of, and they'll try to push it on you. Don't automatically dismiss it if they're pushing it; but get them to explain it fully, and get them to explain other options. Don't be afraid to ask tons of questions, there are no stupid questions. The stupidest thing you could do is make one of these decisions without knowing and feeling comfortable with what you're getting into.

Good luck.

Funny, my dad's like that too. Since that's the case, he might be subject to some higher fees at the bank, but he'll really appreciate the customer service and he'll feel more comfortable.

When it comes to money and retirement, you're not just looking to secure the future of your money, but you're also looking to secure a little peace of mind. Nobody wants to have to worry about their cash. So if your dad trusts this bank enough to stay there for 42 years, he'll probably gain that peace of mind by dealing with them. The higher fees are probably worth it in his case.

If you know you're going to be dealing with this bank, just do your best not to let them hem you into one product or another. Get them to tell you about all the options. Ask if they can provide an IRA for him to roll his money into; and get them to explain it. Ask about annuities and get them to explain them thoroughly. Make sure you ask about the tax advantages of each investment vehicle.

A lot of the time, a bank will have a certain product (perhaps an annuity) that they make a lot of money off of, and they'll try to push it on you. Don't automatically dismiss it if they're pushing it; but get them to explain it fully, and get them to explain other options. Don't be afraid to ask tons of questions, there are no stupid questions. The stupidest thing you could do is make one of these decisions without knowing and feeling comfortable with what you're getting into.

Good luck.




On the subj. of annuities, I've earned a substantially larger amount of money than expected through them over the last several years and now you have alot more control over your money than ever.

The fees suck, but they always will, but it isn't the wost Idea for some of you younger guys who are just starting to save for retirement.

When I started you had 3 options you could invest in and now they're are a couple of hundred. You can choose a general catagory (low risk low yeild, to high risk high yeild) or go into detail and choose to have certain stocks/bonds omitted alltogether or always included in transactions if you feel comfortable having that kind of control.

I also have always like dealing with Fidelity because the customer service in my opinion has been above avg. And when you call its not some guy in india you can't understand. And they don't mind speaking to you in laymans terms without making you feel like a moron....

On the subj. of annuities, I've earned a substantially larger amount of money than expected through them over the last several years and now you have alot more control over your money than ever.

The fees suck, but they always will, but it isn't the wost Idea for some of you younger guys who are just starting to save for retirement.

When I started you had 3 options you could invest in and now they're are a couple of hundred. You can choose a general catagory (low risk low yeild, to high risk high yeild) or go into detail and choose to have certain stocks/bonds omitted alltogether or always included in transactions if you feel comfortable having that kind of control.
You can buy all those funds without buying an annuity. Those are just the funds which you choose and can do the same with mutual funds. With any thing you purchase ask about the fees and commisions by law they have to disclose all this information.

You can buy all those funds without buying an annuity. Those are just the funds which you choose and can do the same with mutual funds. With any thing you purchase ask about the fees and commisions by law they have to disclose all this information.

That's exactly right. An annuity allows you to invest in a lot of different investments, driving the value of your annuity up until you retire. So until you get to retirement, it's really not much different than using mutual funds in an IRA or a 401K. But once you do retire, the annuity guarantees you a certain level of income, based on how big the balance has grown. All the while, you're getting hit with higher fees.

Pre-retirement, everyone should be using an IRA (or 401K if you have access through your employer) because the fees are much lower. Come retirement, you always have the option to exchange your IRA into an annuity. This allows you to avoid the big fees while you're saving for retirement, and then invest in an annuity guaranteeing your income when retirement comes.

I will say that even the people at Fidelity stress the importance of having an IRA and only reccomend using Mutual or Annuity funds as supplemental retirement ventures.

Does anyone know what the "sunset provision" for the 15% capital gains tax legislation is? Because I would think that would need to be taken into account.