What you should do with your 401(k).

ABOUT THIS EPISODE

Like many Americans, your retirement savings may be in a program like a 401(k). Listen to financial expert, John Browning, as he gives you his #1 piece of advice to someone who is leaving a company (hint: don't leave your 401(k). This is a very helpful episode. Connect with John by texting "LIFE" to 21000 or GuardianRockWealth.com.

Welcome to the build your life podcastwith John Browning. Build your life as a relaxed and unedited conversation with financialexpert and number one Amazon bestselling author, John Browning Jones, the founder ofGuardian Rock Wealth and serves clients across the United States. John's the author ofthe book build a life, not a portfolio, a guide to your financialfuture based on your personal values, which you can purchase on Amazon, orstay around to the end of today's show and I'll tell you how to geta free copy mailed right to your door. I'm Michael The lawn, your hostfor the next few minutes as we chat with financial expert and business ownerJohn Browning. Well, good afternoon, John Browning, from Boynton Beach,Florida. Howard's, I'm doing well. I'm La Oursel. You're hey.I'm doing fantastic. It's great. I love talking with you because you're alwaysstimulating my mind and I would do you. Do they still have welcome wagon aroundwhen you move to a new city? You just moved to point beach.We have like welcome wagon. Really know they don't do that anymore.I remember those. They don't care, nor text dollars, because I wasall right. I don't know why, but I remember. I was thinkingback to my childhood days. I remember welcome wagon, I remember special case. Here we are Special K. Oh, yeah, they still have that,don't they? They probably do the grocery store. I don't know ifceives ever go out is they probably still have the box from one thousand ninehundred and seventy, you know, because they should probably. Sorry cereal makers, but Special K was a great serial, you know, and it your healthand all that. But I thought of that because I was thinking aboutthis this episode with you, and we want to talk today about what todo with your your what do with your Special K in your financial plan,which is your O K, which a lot of people have. There area lot of questions about that because there are so many things you can dowith it when you when you retire, you can do a roth roll over, you can what happens when you change...

...employers, not that anybody changes employersanymore. I've ever do there. So I want to know and talk abouttoday what to do with a k. just just start on packing that,because I'm sure there are a thousand different things. Right. That's right.And and you know what it's not just your fore K. There's the there'sa four three be, there's the Tsp. Maybe you were involved in an Sep. There's all kinds of acornyms out there for for what employers can setup. I we sometimes help the small and midsize companies set up some ofthese programs and they're they're really powerful for their powerful for the business owner.They're also powerful for the employees. And one of the things that I alwaystry and tell people is when you leave a firm, leave the firm andother words, take everything with you, take your k with you, andthe way to do that is to roll that over into another tax advantaged instruments, which could be an IRA, which is an individual retirement account, itmight be a Roth IRA, and there's reasons that you should do you mightwant to do both, and they have to do with taxes, future andplanning and gets somewhat complicated. You do not. This is my most commonquestion. If I wanted to roll my k into a into a Rath IRA, but I just don't feel like I can afford because there's a cost,there's a right now cost to rolling it into a Roth IRA. Okay,I don't feel like I can afford to do all of it. Well,you don't have to. You can take a portion of it and roll itinto a Rawth IRA and the other portion stays in a what we call aregular high individual retirement account. But that's...

...that's a whole another real, reallya subject, and that has to do with really you individually, which isnot what we do. We do not pro provide individual financial advice on thispodcast. That has to be done one on one. Right, really easyto get me on that. You just text the word life to twenty onetho or go out to Guardian Rock wealthcom and hits contact US page and I'mhappy to chat with you and it doesn't cost you a thing and I'm notgoing to try and sell you a bunch of stuff. So we get intothat kind of stuff. It's important that we talked about what your individual situationreally is so that that that ties into who. What you do Guardian Rockis help people build a life. Yeah, not just a port folio. Sothat's all part of it. That and I never heard of taking halfor four one day and rolling half of it into a rock. That's newinformation to me. I just always figured it was allt binary. Right,I'm off. Yeah, you don't have to, and it's it's sometimes reallyadvantageous to just do part of it. Yeah, okay, very cool.So, and I loved your number one piece of advice to someone who isleaving a company, and that's going to be in the show notes to getpeople to listen to this. Right, but it's which they when you leavea company, leave the company. Take take everything with you, move itto your new place. Now, let me ask you this job if itwhat if somebody is is in the in term, they leave a company andsix months it might take them six months to get a job, do theyhave some time period to take their money there for one Kay from the count, I mean ballpark. So you have as long as you as you want, until until you have your required mandatory distribution as you get older. Okay, but here, here's the mistake that a lot of people make is itsounds complicated. It I don't really want to deal with it. I'll justleave it there. And the problem with that, and I've helped a lotof people, you know, sort of get there for one K as setsafter many, many years. It can't...

...doesn't have to be, but itjust depends on who the one K provider is. They're all a little bitdifferent and it can be really a difficult process if you've sort of left itthere and they don't know who you are, you don't remember what you know youdid back then, and sometimes you one time I even had to prove, which is amazing to me it was. We had to prove that they hadleft the company and and this this she had not been at that companyfor like eight, nine years. Yeah, and they said, well, whois your supervisor? She didn't even remember her supervisor name then and hersupervisor wasn't that the company anymore either. So I was like, how doyou? Not all of them are that difficult, but some of them canbe. So getting it done right away. All right. Let me add onemore wrinkle. there. Another reason to take it with you is whatdo you if you've moved a company, or tooth or two, three companies? Right, what if you pass away and now your wife has to tryto figure all this out? Okay, don't do that right another a company. I like it. That's your number one piece of advice from somebody leavinga company. Right take take it with you, get it taken care ofright away. Just rip the BANDAID off. Rip That bandaid off right, right, get it done and it's really not that bad. It takes alittle bit of doing. Somebody like myself can help you through the process tomake it not as painful, but it's just just get it done. Theother reason to do it is you gain control, because what I say about, for one case, for three B's, all the tsps, all that.They're good, they're good instruments, they're not great. Yeah, youdon't have the options that you do within if you gain control of that,those assets and you have the whole world at your at your fingertips, whyyou conc building your life then a lot more control then you are. Justleave it somewhere. So right. That's...

...another thing that I tell people abouttheir f one K that they may not be thinking about is if you cannotafford to Max out your both your fore K and your IRA. You can'tafford to do both of those things, then pay attention to what your employermatches, contribute up to the point at which they stop matching. Yep,and then fund fully your IRA or Raw Ira, because that's what you havecontrol of, and then go back and start filling up your fore ca can, because having that control can be really, really powerful. And of course,if you can afford to fund to both of them fully. It's Nineteenzerofive hundred on your four one k this year and less your fifty year oldand then it can be up to twenty six thousand dollars a year in yourfour one K, and then you get six thousand or seven thousand, dependingon your age, to put into an IRA. And you can do bothof them. Another common question. Can I do both? Yes, youcan, so say that it. No, no, you see, you justhit you just you confuse. You had two things and put twenty sixthou into one, into your K for Ok if you're if you're fifty yearsolder, older, right, if you have to catch up thing, okay, they're able to do and then in into an IRA you can contribute anadditional seven thousand dollars if you're over fifty. If you're younger than that, onlysix thousand, and if you're younger than that on your four one Kit's only nineteen thousand five hundred. Leave it to the government to make ita little bit more complicated than it probably should be. But yeah, outbecause that just that's just a whole another episode of what's The differing one Kand IRA and a Roth and where do they intersect and where don't they?So we'll just I'll just add that to the show notes to add another episode, because that's confusing. No wonder people...

...don't do anything with it. Yeah, that's it. That's another few reason people don't do anything where that.It's confusing. It's like, I don't understand it, and so you avoidit totally. It's a lot easier. I'd rather just go get pizza tonightthen deal with that. That's right. But you go back to it fiveyears later, six years later, ten years later, and it's like doyou not remember what I did? All right, yeah, and you forgotthe pass where they got to call the company and it's just Teara it,don't hold. Yeah, that that's yeah, let's not. Let's not go there. Okay. So what to do? Is Your hundred K or our IRAor Roth really, at the end of the day, called John Rightand because there are so many options and you never know what the right moveis if you haven't built a plan first, and we talked about that in theI think the last episode we were talking about road maps and how youneed to start with a financial road map and we talked about acceleration, allthese fun card terms. Is Really Cool, but if you don't really have thatin plant in place, if you don't have a plant and know whereyou're going it. What was it? was that show Chesshire, the Cheshirecat, Allison Wonderland. Right, Oh, yeah, where you going? She'slike, I don't know. He's like weld than anywhere it's going toget to there. It just doesn't really matter. You got to know whenyou're going in. Unlike the government, John, you can create a prettysimple plan for somebody that they can actually understand, right, that's right.Yeah, and that's what a lot of people need to need to know andunderstand, is that this stuff, the complexity of all of this sometimes,I think, is on purpose, but we need people like you, John, who understand it, who enjoy it, to be able to discern all thisand say, okay, what do you wanted to do and have conversations. That's where you guys are. We started Guardian Rock. Well, there'sjust conversations with people, conversations. That's the number one spot because so manytimes the financial advisors or whoever. You know, you start talking about yourarea of expertise, you know, like I was started talking about Oh,here are all these different options, like...

...we did today. Right, wewould just started right in on for one case and all that. Yep,but when we're talking to you oneon one, that's not where we start. Westart with you. How do you feel? And then how do youhow do you want your life to look? What do you want your life tolook? What would be your best life? Forget about how much itcost, but what do you really want? Let's see how you how we canget you there. I think that's great. And that's that road map. That's that's all all the decisions that you need to be making financially.You need a financial coach at financial advisor, and you know, John, alot of people don't. They don't hire somebody like you, and Ithink we need to do a show on that of why people don't hire financialadvisor, because you know more about financial advising than I will ever know.Right, you've probably forgotten more about financial advising than I will ever know,and that's okay. You know, but people just need to reach out andrealize it's not it's not a sign of weakness to say that I have afinancial advisor and they help me. They're helping me build a life and getto where I want, so I can move to Boyton beach to be bymy new grandbaby or whatever I want, whatever I want to do. It'sokay, it's we're actually really good right. Oh, I tell you what,I certainly don't know what an electrician knows about wiring my house, yeah, or probably even what you know about fixing my car, although it's probablybeen a while, so maybe it's changed it up that. Yeah, Iknow a little bit. I'm fine do more damage. Yeah, we allhave areas of expertise, and yours is definitely in financial planning and helping peoplebuild a life, not just a portfolio, which happens to be the name ofYour Amazon best on the book that people can get on Amazon, Kendall, or they can call you or, you know, request a copy fromyou. They can then go to your website, Guardian rockwellcom, or nowthis new thing that you have, they can text you, which is reallykind of a cool thing. If they just pick up their phone, evenright now, is they're listening to podcast, open the texting feature. Sure,and text the word life, Alife,...

...and text that not to John Brownie, but text it to twenty one tho. That's right. That's acrazy thing. Yeah, there's a cool little video there about the book.And then there's they can just download the hit a button and they download allmy information, gets right there on their phone and they can schedule a meetingtheir click that link and yeah, that's it's pretty cool. I did it. So it is just an APP thing that you do that and John's contactinformation comes to you and, yeah, there's an information about it book.It's just a really cool way to do it. So you can do that. If that's too techy for you, just go to Guardian rockwellcom and youcan schedule a call with with John and the first thing he's going to dois have a conversation with you and begin laying out your financial road map sothat he can he can help you get to where you're going. So,John, that's that's really cool. We had a great time talking about whatto do with your k today and took us down a lot of paths,because there's a lot of different thingss you can do with a k and anIRA based on what you're wanting to do with your life. Right, that'sright. Yeah, so reach out. Reach out to John. Text himat text the Word Life to twenty one tho, or go to Guardian Rockwealthcom and have a conversation with Amazon best selling author John Brown John Take are, we will talk to you next time. All right, sounds get it.We'll see up. Money really is a big part of our lives,and John Browning can help you and your family learn how to keep money inthe proper perspective. It's important, but it's only a tool that can helpyou build the life that you want. If you like John Emil, youa free copy of his book build a life, not a portfolio. Goto John's website, Guardian Rock wealthcom, and click the contact to US linkand send your request. John Will Mell a copy of his book right toyour door absolutely free. Thanks for listening to building your life podcast with JohnBrowning. Be Sure to subscribe to this podcast so each new episode will besent to you automatically when it's released.

Have a terrific day. Nothing inthis podcast should be construed as personal investment advice, and past performance is noguarantee of future results. Investing is not appropriate for everyone. There is arisk of loss associated with investing in the markets. No representation or implication isbeing made that using any methodology or system will generate profits or insure freedom fromlosses. Please remember that investing carries risk. Guardian Rock Wealth LLC and it's affiliatesare fiduciary investment advisors. Please consult with US or another experienced qualified investmentadvisor before making any investment decisions and or trying to implement any of the strategiesand tactics we may discuss in any of our publications or podcasts.

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