Getting laid off is never easy, you’re faced with having to rethink your spending… right away! Think about your essentials first and then what you’ll need in order to get back on track. Eliminating unnecessary spending will help you formulate your game plan and alleviate the stress of not having enough money at the end of the month. Assess your accounts and savings to determine how long they will last. Factor in any unemployment money as well as any alternate sources of income you can earn.
Now get in touch with your accountant and investment advisor to evaluate the cost and feasibility of freeing up resources from your 401(k), if needed.
Rolling your 401(k) into an IRA affords you greater investment choices and more control of your money.
The most important thing to remember when moving retirement money is to avoid costly mistakes. Losing your job is stressful, do not panic. Get in touch with your financial planner or legal counsel right away to carefully consider all the tax-deferred retirement plan options.
Please note that the content of this blog does not constitute tax advice and is only intended for the educational purpose of the reader. Please consult your tax advisor for specifics regarding your circumstances.
For more information contact us at 845.563.0537 or Contact@CompassAMG.com
Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC a Federally Registered Investment Advisory Firm. Securities offered through an affiliated company Spire Securities, LLC a Registered Broker/Dealer and member FINRA/SIPC.
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About Compass Asset Management Group
Our boutique-style firm has an investment philosophy is both prudent and value driven. We combine research from the largest firms on Wall Street with three decades of market experience to provide strategic, tactical and dynamic investment management. Compass Asset Management Group, LLC delivers personalized financial planning, estate planning and investment management advice in a private setting with a high degree of sensitivity to your concerns and objectives. Our goal is to exceed yours expectations by listening closely, understanding deeply and communicating well through frequent, personal consultations entirely focused on your financial goals.
COMPASS ASSET MANAGEMENT GROUP
100 STONY BROOK COURT SUITE C
NEWBURGH, NY. 12550
Retrieved on February 9, 2016 from http://career-advice.monster.com/salary-benefits/benefits-information/after-layoff-what-to-do-with-401k/article.aspx.
Powel, R. (August 16, 2012). 11 reasons to leave your 401(k) behind. Market Watch.
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Tags: 401(k), executive retirement plan, retirement, Roth IRA