After years of growing a 401(k) while working for Office Depot and now nearing retirement, what exactly are your options? Office Depot offers a 401(k) retirement plan from Fidelity Investments, but do you have to keep your 401(k) earnings there? Basically, the question is: what should you do with your Office Depot retirement?
Retirement With a 401(k)
The minimum age of retirement recognized by a 401(k) plan is 59 ½ years old, which may or may not be your age. Either way, starting to receive funds from a 401(k) has to wait until this age. There are many restrictions around withdrawing from this retirement savings account, which are designed to penalize early withdraws.
When reaching that retirement age, a set amount will be distributed each month from your 401(k), determined by life expectancy and other factors around each individual circumstance. This amount distributed will be taxable as income tax, according to the tax bracket itwas made in. So, although a 401(k) is tax deferred at first, later on the recipient does have to pay some taxes on it.
Options When Retiring
Reaching the age of retiring is a joyous occasion, which shouldn’t be hampered by bad surprises when it comes to restrictions and limitations around your retirement savings. Likely, you’ve been monitoring the amounts and even contributing extra into your 401(k), and now you want to ensure you benefit from the years of investing and hard work.
Using your money to make money is a great idea, and can be sort of a part-time job during retirement. If used correctly, investments could grow and taxes could be minimized. For the retiree who wants more flexibility and options in dealing with his retirement savings, a directroll-over of their 401(k) into another retirement plan may be the right option.
Here are some retirement investment opportunities to consider:
- Mutual Funds
Rolling over a 401(k) directly into another qualified retirement plan, can be done without penalty or tax liability. The purpose of this is to give you more flexibility and options concerning withdraw and investment opportunities.
Benefits of Using a Smaller Retirement Specialist Firm
Working with a smaller retirement specialist financial advisor, can give you the personal attention needed to maximize your retirement account benefits. Larger firms are less capable of working individually with each client, the way a smaller firm like S.A.C. Investments can. The best part is: you’ll get even better expertise and advice, because you’ll have access to their top advisors.
There are many tips and tricks to the investment world, which an experienced financial advisor can help you navigate. Taking chances with the hard-earned money you’ve accumulated for decades, should be avoided. Working with a smaller firm, means you’ll get the attention and advice needed to avoid heavy penalties, risky investment practices, and heavy tax liability.
We’re retirement specialists, which means we understand how to properly manage 401(k) roll overs into qualified retirement plans, which give more investment options and flexibility. Every client’s needs and circumstances are different, and we take the time needed to gain a clear understanding of these unique variables.
Asset allocation and risk vs. reward are both part of our investment strategies, which result in secure investing while gaining the highest rewards. Our goal is to choose your investments based on your needs and objectives, rather than some cookie-cutter formula. And it is our ultimate goal to provide a level of service that inspires confidence and trust, while bringing absolute clarity to each client’s goals and investment objectives.
After decades of working for Office Depot and investing into your 401(k), gaining a clear understanding of future investment options is a wise choice. By talking to S.A.C. Investments with a free consultation, your savings could be more accessible and earn more every year. Please contact us today to learn more, and we’ll be glad to help.