#115 How to Decide Whether to Rollover Your 401(k) to an IRA

Should I rollover my 401(k) to an IRA? Most advisors say yes, but it’s not always the best idea. In this episode, we share what you should consider to make the choice that’s right for you.

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Happy Lab

Over the last few weeks we’ve been reviewing the top 5 regrets people have at the end of their life.

Here's the list so far;

#5: I wish I had allowed myself to be happier

#4: I wish I had stayed in touch with my friends

And this week, #3: I wish I had shared my feelings more.

S.M.A.R.T. Sprint

Stay connected with people you care about. In the next 7 days, call a friend you haven’t spoken to in awhile.

What’s That Mean??

Style Drift.

Why do you buy an investment strategy? The obvious question is to make us money. But one investment strategy is typically part of an overall portfolio that is designed to work together. Each piece of the portfolio (or asset allocation) has a role to play. Much like each contractor used to build a house does. The plumber puts in the plumbing. The landscaper puts in the landscape. And so forth. As long as they execute their roles, you can get a great house (or portfolio). If, however, the plumber starts to putting flowers in your pipes you may not notice right away, but you’ll have a problem. Likewise, if that small cap strategy starts buying large caps, you won’t notice at first but eventually you’ll have a different experience than you bargained for. That’s style drift.

It’s the same with your portfolio. Each investment strategy has a role to play.

Hot Topic This Week

Last week major world oil producers met in Qatar to discuss a production freeze. News of the upcoming discussions helped stabilize oil markets in recent weeks. Unfortunately, as expected, they were unable to come to an agreement. We'll discuss the possible implications it could have global equity markets.

Practical Planning

On this week's show we answer listener questions including:

Does it matter when I rollover my 401(k) to an IRA? What should I consider when making this decisions?
When designing a balanced portfolio, should I count my company pension plan (which gives me $100,000 a year) as part of my bond portfolio?
In retirement, is retail income considered earned income? Would rental income factor into whether my Social Security would be taxed?