Know Your 401k Mistakes
Blog post description.Well, Now That You Found It – 3 Stupid Mistakes Everyone Makes (And How Not To
You dug it up. Good. Now the ambush starts.
1. Don't let Schwab roll it in. They'll move your 401k to one of their IRAs. Easy? Sure. Yearly fee: 1 %. That's $750 on $75k-whether they grow it or tank. A client paid nine grand in fees before he ever withdrew a dime.
2. Don't cash it all out. Tax bill could hit 30 % if you earn anything else. Your $75k lands as $52k. And the compounding stops-like killing a golden goose for dinner.
3. Don't dump it in a regular annuity. Sales reps push those-big commission, ten-year lock, 4 % payout. Instead, roll it into a fixed-indexed annuity : tax-deferred, zero management fees, and you can pull 10 % penalty-free if you need cash tomorrow. Some even pay you a 10-to-20% bonus the day you sign. No joke. Bottom line: Schwab isn't your advisor. They're your landlord. Book fifteen minutes with someone who wins only if you're safe. Need real help?
Well, Now That You Found It – 3 Stupid Mistakes Everyone Makes (And How Not To)
