401K/Retirement Advice

[Pee Dub]

OK guys, the time has come that I've been working for. It is coming a couple of years sooner than I had planned because of a Voluntary Severance Package Offer(early retirement).
The major funding will come from my 401K Plan with a little thrown in from a piddly pension fund which I plan to roll over as a lump sum into the new IRA.
I have contacted an investment rep from ING as suggested by a couple of friends and after 4 1/2 hours I was very impressed with what they had to offer. "If it sounds too good to be true, it probably is" keeps ringing in my head.
After mostly lurking on these forums for the last few years, I have arrived at the conclusion that even with some the silliness that gets posted on here, there is some pretty solid advice that has come from many many members who frequent these boards. Now I am asking for advice as to what to be on the lookout for as I move into this unknown territory. Seem as if all the retirees I know are on a regular pension plan.

[TCHB]

1. Roll it over to a IRA account on your own.
2. Ammertrade is a great place to put the money so you can manage it.
3. Mange it yourself
4. If you do not like stocks put it in a fund account that tracks SP.
5. Diversify your portfolio depending on your age and risk you want to take.

[INSman]

ING is a very large name and well respected in the Financial Services arena and you are probably well represented. Maybe ask your Rep for a few referals to confirm what he/she has done for them and how long he/she has been doing it.

[moneypit]

ING is a very large name and well respected in the Financial Services arena and you are probably well represented. Maybe ask your Rep for a few referals to confirm what he/she has done for them and how long he/she has been doing it.
Hes right. Just because they got a badge with a name on it doesn't mean they have experience. I have seen and dealt with with many young financial advisors (Merrill, Schwab) and they sucked at advice... Go with someone that has a good rep and solid advice.

[BigDoug]

Very good info here :)

[Pee Dub]

Thanks for the responses. The ING rep has been in business close to 20 years and I went there on a referral. I haven't recieved my termination date yet, so I should have time to meet with a few other reps and see if they are anywhere close to what the ING programs are. Problem is, I don't really know enough to know what kind of traps are out there.

[SoCalOffshore]

I am a fee only CFP and registered investment advisor. Make sure ING is NOT advising the use of variable annuities or any loaded funds. You need a fee only advisor. you can check out my web site and get some solid information at www.nbscompanies.com. I am not soliciting your business, just want you to make an informed decision. Good luck.

[2Driver]

I am a fee only CFP and registered investment advisor. Make sure ING is NOT advising the use of variable annuities or any loaded funds. You need a fee only advisor. you can check out my web site and get some solid information at www.nbscompanies.com. I am not soliciting your business, just want you to make an informed decision. Good luck.
I have both of them what’s the issue - seriously real question?. I paid for a load fund (2.5% American Funds family) have they have out performed all my old no-load funds and have very small maint fees compared to some so called no-load funds. So I paid 2.5% to get in, I passed that up in the first 8 weeks.

[NautiTwins]

I have both of them what’s the issue - seriously real question?. I paid for a load fund (2.5% American Funds family) have they have out performed all my old no-load funds and have very small maint fees compared to some so called no-load funds. So I paid 2.5% to get in, I passed that up in the first 8 weeks.
SOme people run from VA's as if the town was coming after them with a torch. Used correctly they can be very effective meeting a current or future need. The fees are what the big concern is. Fully loaded VA can run as high as 3%.
No-Load=No Help. And a no-load fund even though they are not stated usually run about .5-1%, trading costs, advertising etc....
Amercian Funds are a very good fund family and some of the lowest fees out there.

[NautiTwins]

Thanks for the responses. The ING rep has been in business close to 20 years and I went there on a referral. I haven't recieved my termination date yet, so I should have time to meet with a few other reps and see if they are anywhere close to what the ING programs are. Problem is, I don't really know enough to know what kind of traps are out there.
I have never ran into ING in competition so I am not sure what they have to offer. If you spoke with the guy and all he did was talk about product, I would move on and look for someone that you can have a relationship with. Everyone can offer the same products, if you do not have a good relationship your investments will suffer to meet your ever changing goals.

[NautiTwins]

ING is a very large name and well respected in the Financial Services arena and you are probably well represented. Maybe ask your Rep for a few referals to confirm what he/she has done for them and how long he/she has been doing it.
Sorry to keep posting here. But this has got to be the best advice I have heard of yet. Nothing speaks of character like him letting you talk to clients. Also, ask for a range of clients. Meaning, someone with $100k with him and someone with a $1mm and see if they get the same advice and as many phone calls etc.....

[Pee Dub]

These are the kind of discussions I was hoping for. Thanks. All the programs out there are pretty overwhelming to a novice like myself.

[SoCalOffshore]

american funds are a very good fund family. VA's are poor investment vehicles and very expensive. The M&E fees eat away at the tax deferred benefit and you pay ordinary income tax when you take distributions. No capital gains benefit, also NO step up of basis at death. One is much better off using exchange traded funds or tax efficient mutual funds. I have articles on my site about VA's.

[2Driver]

american funds are a very good fund family. VA's are poor investment vehicles and very expensive. The M&E fees eat away at the tax deferred benefit and you pay ordinary income tax when you take distributions. No capital gains benefit, also NO step up of basis at death. One is much better off using exchange traded funds or tax efficient mutual funds. I have articles on my site about VA's.
Thanx, I have the Edward Jones Broker in Havasu to thank for the VA purchases. :mad:

[HM]

OK guys, the time has come that I've been working for. It is coming a couple of years sooner than I had planned because of a Voluntary Severance Package Offer(early retirement).
The major funding will come from my 401K Plan with a little thrown in from a piddly pension fund which I plan to roll over as a lump sum into the new IRA.
I have contacted an investment rep from ING as suggested by a couple of friends and after 4 1/2 hours I was very impressed with what they had to offer. "If it sounds too good to be true, it probably is" keeps ringing in my head.
After mostly lurking on these forums for the last few years, I have arrived at the conclusion that even with some the silliness that gets posted on here, there is some pretty solid advice that has come from many many members who frequent these boards. Now I am asking for advice as to what to be on the lookout for as I move into this unknown territory. Seem as if all the retirees I know are on a regular pension plan.
Good rule of thumb about too good to be true, but don't turn it down. You should be working with an advisor that educates you. If you think it is too good to be true....then you don't understand it. Because, if you did, you would either say "bullshit" or "sign me up." If they won't take the time to educate you, then run, don't walk, away.
I specialize in retirement planning, but I am pretty new. Luckily, I work directly with guys that have been doing it for 10-20 years. One of the things I do is make sure my clients truly understand all the bads - I even quiz them on it before we sign contracts. I won't do business with stupid people, and I tell them and I use that language. I will take as long as it takes to help them truly understand.
Not only do I specialize in retirement planning, but I specialize in safe money retirement planning. I move people's retirement money from investments with risk to investments with no risk - and still get stock market like potentials without ever losing their principle or any of the gains they get. Reality is they won't do stock market type returns, but will safely return 8-9% tax deferred and even tax free on a consistent basis without ever participating in the losses of the stock market.
I would be happy to answer any questions you have about ING or even their presentation that sounded too good to be true. ING is a great company, I do a little business with their life insurance division.
There are lots of things people don't realize have a huge impact and they are compounding interest and tax advantages. Many times, the tax preferred treatments have more influence on your ability to earn than anyone ever realized.
The first thing you need to decide is what is the purpose of the 401K money you have - as there are options.

[locogringo]

This is what I would do if I were you...
Roll your 401k into an IRA account that is self-directed. Or, if it is already an IRA account, transfer it to a self-directed IRA account where you can determine where it goes (not just their approved transactions either).
There are a few companies out there that let you self-direct.
Now, start using your IRA money to buy real estate (and no, you don't need 1000's, 10s of thousands or 100's of thousands to do so).
When you buy properties in your IRA and then sell it through your IRA, all your profit is put back into it TAX FREE for LIFE!
One of the last ways to gain massive amounts of money and not have to pay any money on it.
Good luck;
DB

[SoCalOffshore]

Wow what a topic. Remember buying real estate in an IRA using leverage can creat UBTI (Unrelated Business Taxable Income). I would be very cautious about using non liquid investments to fund retirement if you need current income. Also, I would be cautious of stock market returns without any downside risk. These typically are Equity Indexed Annuities and have a whole host of complex issues. Find a CFP, atleast you know they are serious about the busines and spent some two years of education with a 10 hour comprehenive exam to pass. Plus a code of ethics. Lastly, you want your advisor to have a fiduciary relationship with you. This simply means they are required to place your interests ahead of there own. The majority of brokers can not or will not accept this liability. Most wire houses have petitioned the SEC to be exempt from this hightened level of regulation. Lastly, if the advisor does not produce a retirement plan for you PRIOR to making investment decisions, I would be very cautious. go to fpanet.org for information on financial planning. Good luck!! :idea:

[Pee Dub]

I have never ran into ING in competition so I am not sure what they have to offer. If you spoke with the guy and all he did was talk about product, I would move on and look for someone that you can have a relationship with. Everyone can offer the same products, if you do not have a good relationship your investments will suffer to meet your ever changing goals.
Ran into this person today. Came highly recommended by some friends, but he didn't seem to want to hear what MY goals are. I am not interested in a 4 million dollar portfolio when I am 75 years old. What I am interested in is a good comfortable income, especially for the next few years before I become too old to enjoy my retirement. Sure, I would love to see my money grow, but I have already done the gambling that it took to get where I'm at and my children just may have to make do with the property inheritance instead of a cash windfall that will be taxed to tears.
And by the way, this was a 61 year old man with over 20 years in the biz but apparently wasn't too proud of his educational accomplishments....no diplomas or certificates on the walls.

[locogringo]

[QUOTE=SoCalOffshore]Wow what a topic. Remember buying real estate in an IRA using leverage can creat UBTI (Unrelated Business Taxable Income). I would be very cautious about using non liquid investments to fund retirement if you need current income. [QUOTE]
There are ways around that.