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 podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert and number one Amazon bestselling author, John Browning Jones, the founder of Guardian Rock Wealth and serves clients across the United States. John's the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy mailed right to your door. I'm Michael The lawn, your host for the next few minutes as we chat with financial expert and business owner John 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 always stimulating my mind and I would do you. Do they still have welcome wagon around when 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 was all right. I don't know why, but I remember. I was thinking back 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 if ceives ever go out is they probably still have the box from one thousand nine hundred and seventy, you know, because they should probably. Sorry cereal makers, but Special K was a great serial, you know, and it your health and all that. But I thought of that because I was thinking about this this episode with you, and we want to talk today about what to do 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 are a lot of questions about that because there are so many things you can do with 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 employers anymore. I've ever do there. So I want to know and talk about today 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's a 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 set up. I we sometimes help the small and midsize companies set up some of these 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 always try and tell people is when you leave a firm, leave the firm and other words, take everything with you, take your k with you, and the 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, it might be a Roth IRA, and there's reasons that you should do you might want to do both, and they have to do with taxes, future and planning and gets somewhat complicated. You do not. This is my most common question. 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 it into a Rawth IRA and the other portion stays in a what we call a regular high individual retirement account. But that's...

...that's a whole another real, really a subject, and that has to do with really you individually, which is not what we do. We do not pro provide individual financial advice on this podcast. That has to be done one on one. Right, really easy to get me on that. You just text the word life to twenty one tho or go out to Guardian Rock wealthcom and hits contact US page and I'm happy to chat with you and it doesn't cost you a thing and I'm not going to try and sell you a bunch of stuff. So we get into that kind of stuff. It's important that we talked about what your individual situation really is so that that that ties into who. What you do Guardian Rock is help people build a life. Yeah, not just a port folio. So that's all part of it. That and I never heard of taking half or four one day and rolling half of it into a rock. That's new information 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 really advantageous to just do part of it. Yeah, okay, very cool. So, and I loved your number one piece of advice to someone who is leaving a company, and that's going to be in the show notes to get people to listen to this. Right, but it's which they when you leave a company, leave the company. Take take everything with you, move it to your new place. Now, let me ask you this job if it what if somebody is is in the in term, they leave a company and six months it might take them six months to get a job, do they have 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 it sounds complicated. It I don't really want to deal with it. I'll just leave it there. And the problem with that, and I've helped a lot of people, you know, sort of get there for one K as sets after many, many years. It can't...

...doesn't have to be, but it just depends on who the one K provider is. They're all a little bit different and it can be really a difficult process if you've sort of left it there and they don't know who you are, you don't remember what you know you did 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 had left the company and and this this she had not been at that company for like eight, nine years. Yeah, and they said, well, who is your supervisor? She didn't even remember her supervisor name then and her supervisor wasn't that the company anymore either. So I was like, how do you? Not all of them are that difficult, but some of them can be. So getting it done right away. All right. Let me add one more wrinkle. there. Another reason to take it with you is what do 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 try to 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 leaving a company. Right take take it with you, get it taken care of right away. Just rip the BANDAID off. Rip That bandaid off right, right, get it done and it's really not that bad. It takes a little bit of doing. Somebody like myself can help you through the process to make it not as painful, but it's just just get it done. The other 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, you don'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, why you conc building your life then a lot more control then you are. Just leave it somewhere. So right. That's...

...another thing that I tell people about their f one K that they may not be thinking about is if you cannot afford to Max out your both your fore K and your IRA. You can't afford to do both of those things, then pay attention to what your employer matches, 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 have control 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 Nineteenzero five hundred on your four one k this year and less your fifty year old and then it can be up to twenty six thousand dollars a year in your four one K, and then you get six thousand or seven thousand, depending on your age, to put into an IRA. And you can do both of them. Another common question. Can I do both? Yes, you can, so say that it. No, no, you see, you just hit you just you confuse. You had two things and put twenty six thou into one, into your K for Ok if you're if you're fifty years older, older, right, if you have to catch up thing, okay, they're able to do and then in into an IRA you can contribute an additional seven thousand dollars if you're over fifty. If you're younger than that, only six thousand, and if you're younger than that on your four one K it's only nineteen thousand five hundred. Leave it to the government to make it a little bit more complicated than it probably should be. But yeah, out because that just that's just a whole another episode of what's The differing one K and 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 avoid it totally. It's a lot easier. I'd rather just go get pizza tonight then deal with that. That's right. But you go back to it five years later, six years later, ten years later, and it's like do you not remember what I did? All right, yeah, and you forgot the 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 IRA or Roth really, at the end of the day, called John Right and because there are so many options and you never know what the right move is if you haven't built a plan first, and we talked about that in the I think the last episode we were talking about road maps and how you need to start with a financial road map and we talked about acceleration, all these fun card terms. Is Really Cool, but if you don't really have that in plant in place, if you don't have a plant and know where you're going it. What was it? was that show Chesshire, the Cheshire cat, Allison Wonderland. Right, Oh, yeah, where you going? She's like, I don't know. He's like weld than anywhere it's going to get to there. It just doesn't really matter. You got to know when you're going in. Unlike the government, John, you can create a pretty simple 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 and understand, 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 this and say, okay, what do you wanted to do and have conversations. That's where you guys are. We started Guardian Rock. Well, there's just conversations with people, conversations. That's the number one spot because so many times the financial advisors or whoever. You know, you start talking about your area of expertise, you know, like I was started talking about Oh, here are all these different options, like...

...we did today. Right, we would 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. We start with you. How do you feel? And then how do you how do you want your life to look? What do you want your life to look? What would be your best life? Forget about how much it cost, but what do you really want? Let's see how you how we can get 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, a lot of people don't. They don't hire somebody like you, and I think we need to do a show on that of why people don't hire financial advisor, 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 and realize it's not it's not a sign of weakness to say that I have a financial advisor and they help me. They're helping me build a life and get to where I want, so I can move to Boyton beach to be by my new grandbaby or whatever I want, whatever I want to do. It's okay, 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 probably been a while, so maybe it's changed it up that. Yeah, I know a little bit. I'm fine do more damage. Yeah, we all have areas of expertise, and yours is definitely in financial planning and helping people build a life, not just a portfolio, which happens to be the name of Your Amazon best on the book that people can get on Amazon, Kendall, or they can call you or, you know, request a copy from you. They can then go to your website, Guardian rockwellcom, or now this new thing that you have, they can text you, which is really kind of a cool thing. If they just pick up their phone, even right 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 a crazy 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 all my information, gets right there on their phone and they can schedule a meeting their 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 contact information 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 you can schedule a call with with John and the first thing he's going to do is have a conversation with you and begin laying out your financial road map so that 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 what to 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 an IRA based on what you're wanting to do with your life. Right, that's right. Yeah, so reach out. Reach out to John. Text him at text the Word Life to twenty one tho, or go to Guardian Rock wealthcom 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 in the proper perspective. It's important, but it's only a tool that can help you build the life that you want. If you like John Emil, you a free copy of his book build a life, not a portfolio. Go to John's website, Guardian Rock wealthcom, and click the contact to US link and send your request. John Will Mell a copy of his book right to your door absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automatically when it's released.

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

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