Guys need help just got the letter telling me the money is ready to be split its her 401 I get 50% of it , Its over 80 th I need some to move out of the house but what do I do with the rest .IRA OR WHAT ,I need help the rest is my retirement money , were should I put it .

depends....how old are you and at what age do you plan to retire???

Iam 47 , like to work till 62. But I need to know were to put this so it will grow and help me in the years to come .

How much are you planning on using to move out??? I'm asking this stuff because I do want to help you....can't help if I don't know some specifics....

not2fun

There is about 90 thou. that I get Iam taking 20 th out and I will get hit with a 20% tax on that , Here is what I need to know were do I put the other amount to help me down the road .

You should talk t a financial planner to get the best advice. Many banks offer this service.

LC

Ditto Lifechoice's comments.

Talk with Fidelity. Rollover IRA is designed for 401K to IRA transfer.

I would put my money into a cash account yielding low interest. Short term CD's, Bonds, etc. When the market makes the turn (hopefully soon) "I" would Invest aggressively in large cap stocks and mutuals.

Suzie Orman says to fund a Roth IRA and invest equal amounts periodically in the stock market.

Give me more..

I suggest you email the Suzy Orman show. She will give you excellent advice. And she often warns people about "financial advisors". Many are good, and many are more interested in padding their own portfolio.

I'm not sure how it works in D situations but can you roll over the money without the tax consequence as if you were doing a regular rollover of your own money? If the taxes can be avoided, I'd roll it over into an IRA and keep it invested in the most conservate investment option. The market sucks and the ecomony looks pretty cruddy for 2009. When the ecomony looks better you can invest it into something a little more aggressive.

If you need the money to buy a house, you can use it that way as well. It's a buyer market and you'd still have a decent downpayment even after taxes.

I will probably have to give up half of my 401 to WH. My atty says we will just do a rollover.

I'm by no means a financial advisor, but one thing that held up the value of my 401 back in 2000-2001 was a 20 year zero coupon bond. I had about 1/3 of it invested in the bond which helped.

I've been too afraid to look at my statment this time around. I don't know yet what kind of loss I have suffered in the crash of 2008.

Any money you pull out of a 401k will be BOTH taxable and subject to penalty. This can get expensive in a hurry.

Dave Ramsey is an excellent financial advisor, sort of the Dr. Harley in the financial world. He has a nationally syndicated radio talk show. Go to his website (http://www.daveramsey.com/sa/mutualfunds/) and look for and "ELP" provider. This will take you to a financial tutor in your area that Dave has knowledge of and approves of. They will have had to gone through Dave's "Financial Peace University" training.

They will be able to help you rollover your money, knowing in advance all the perils that might be involved.

If you have any doubts about your advisor, get second opinions.

Best wishes...
SD

Yes please do investigate the early withdrawal penalty and see whether your specific situation qualifies to avoid it. There aren't many exclusions.

Be that as it may, aren't WE all out there every day "padding" our portfolio's. There are a marginal FEW advisors who do this, putting their clients money in whatever avenue makes them the most.....BUT anyone worth their salt do not, because it makes for bad business. If an advisors gives you bad advice word gets around VERY quickly.....

But to tell him not to see one because they are only out to pad their own portfolio is bad advice.....

If his pipes were leaking, would you tell him not to call a plumber, because plumbers are only out to pad their own portfolio???

Same with a Dr., Vet, repair man.....its what we all do everyday...

now, that being said, I would do RESEARCH for a financial planner who also has a Tax rep. They both can help you what to. Ask your friends, neighbors, pastors,,,,,ANYBODY....the best way to find out about someones reputation is word of mouth. When you do call one up and make an appointment, WRITE DOWN every single question you have. COME PREPARED.....Take a notebook as well. That way when you two are talking, you can take notes on what they say.....oh, and look em up in BBB. Bad advisors get lots of hits when they give BAD ADVICE....

Look, to be honest, my H is a Financial Planner, specializing in retirement. If you want you can tell me where you live and I maybe able to get a name of someone in your area......

Just like with anything, DO YOUR HOMEWORK AND BE PREPARED....

not2fun

ps...my H has given advice MANY MANY TIMES on investments that made him less commision then another investment might have. But he goes by what is BEST for his clients......ok off the soapbox.....Sorry B, just not a huge fan of Ms. Orman...she does have good advice some of the time, but not all of the time and I HATE HATE HATE when I see that quote...to me it says, "Don't go to a professional, BUY MY PRODUCTS INSTEAD...."


No

Are you for real?

Don't you see what is going on with Wall Street right now and all these financial experts? It is the definition of bad business.

They are stealing from you and I. Greed is something to always be aware of.

Be very very careful who you entrust your money to.

In regards to the 401k money, once you receive the 401k money you have 60 days to roll it over into an IRA. If you meet this timeline and roll ALL of it over you keep it all. Choose a broker or discount broker and you can invest this money in any investments you want.

If you don't meet the timeline or take some of the money you will be required to pay a 10% penalty and you will also have to pay all the taxes due on the initial investment amount and any investment gains. Your 90K will likely be less than 60k after all is said and done with this path before you use any of it for other things.

Oh, Sorry Not2. I just watched Suzy Orman last weekend and there were 3 cases where people lost most of their retirement funds by listening to poor financial advisor advice. One poor couple lost $150,000. of their retirement money. They planned to retire this year and only have $100,000. left because they lost it in technical stocks in the stock market.

Anyway, I'm sure that many are excellent, but folks need to be very careful these days.

But, hey, ask hubby for some tips to give me!!!!!!!!!!!!!!!!!

I don't know the story,...but...H has had many people call recently that he had met with in the last couple of years. They liked what they he had to say but didn't want to move their money outta the SM. He told them how at their age they shouldn't have been in there, not that heavily invested anyway. ...well, now they are calling him for help, because they listened to their brokers and NOW their portfolio's are worth less than HALF than they were at the time he had seen them. IN FACT, one couple called him two weeks ago. They didn't take his advice on their 1.2 million portfolio, and now it is worth only $500,000.00!!!!!!

He has also had clients call him THANKING him like crazy for his good advice and helping them and their money TODAY is safe and either staying still or GROWING......soooooooooo, I guess my point was yes, do your homework on WHO you go to, but to NOT get professional advice and help is not good either.....sorta like your finding a bad mole on your skin but not going to the Dr. cuz ya don't trust em....KWIM?????

Anyway, H and I are not really talking at the moment (haven't posted....not even SURE where to begin....), but when we do I'll see what he says. Like I said, he specializes in Retirement and Estate Planning......

not2fun


ps...If my previous post came across pissy, I'm sure it has a lot to do with current sitch.... :RollieEyes:

Yes, the stock market should be for a long term investment, and money needed for retirement should not have been in it, especially so close to retirement. Very sad.

EXACTLY......SM is for when you are younger....then as you get older you pull out SLOWLY....and usually you need different advice by then. The finacial planner you use in your 30's should NOT be the same one in your 50's....unless they have the right training for it.....It sort like the man who goes to his regular DR. to take care of his cancer.....and a GOOD financial planner will tell you to go elsewhere when your reach certain platue's. Knowing they don't specialize in what you need at that time......

Now I'm just on a tangent.....

FWIW....the market is in a PRIME condition for the younger set to put their money. You don't see these kind of lows but once in your life time.......I'm talking the 20's and 30's crowd. Unfortunately, the one's in their 20's usually want to SPEND their money instead of save it.....

ok....enough advice from me....I stand by my advice....GET A PROFESSIONAL to help you....oh, and BTW, the wealthiest 5% of american's DO use professionals to handle their monies and affairs. Because they know they aren't qualified to do it....

not2fun