Description

Maybe you are thinking of moving to a new job in the new year, well here to help make sure your finances are in order for the transition is Better financial expert, Maribel Aber.

Transcript

Audra Lowe: You know when people leave there job the first thing in your mind usually isn’t your 401K and your pension but believe it or not it’s definitely something that you don’t want to forget about, in fact you should probably have a plan together before you leave. Maribel Aber is Better’s Financing Career Expert and she’s here to talk us about how to make sure that you really take advantage of all you assets before you leave the company. Good to have you back Maribel. Maribel Aber: Good to be here. Audra Lowe: Yes, we’re talking it could be because you loss your job, maybe retired or maybe you decide to move on to another job to you but you have to focus on the money that’s left behind right? Maribel Aber: You’re absolutely right and a lot of people will be surprise, don’t do it. According to Charles Shwab they put a report that 435 of individual that have a 401K day after a year have even bother to move there assets. Because they’re really focus on in a lay off what I’m going to tell my friends? What I’m going to tell my family? They’re not focus on and what are those things back there that are you mean right? Audra Lowe: Exactly. Maribel Aber: And I think you should always be in the driver sit when you focus on your future savings, you should always know what’s out there. Audra Lowe: After all you work tired to that so you should get right? Maribel Aber: Absolutely. Audra Lowe: Okay, we know that you don’t want to loss out on anything but as far as assets are concern what types of things you should use specifically you’ll be looking for? Maribel Aber: Well these are the things that you should look for okay, stock options. A lot time’s people don’t even think that oh wow I was granted to stock option contributions. So two things to think about there, one are you basted and what is that mean? That means do you have an interest a legal white to those options and if you do you’ve got two things you can do. You can either sell them and get cash for them if there is value or you can purchase the stocks but the one thing that people forget is that when you leave the company, the company usually has a time if you are going to make the decision or as you might forfeit that scene number one. The second thing is for all of that workaholic there is vacation time. Audra Lowe: I knew you are going to say that. Maribel Aber: There is vacation time, there is mean for all of use who works so many hours and bank you know use that time there is money there and then not to forget of course the 401K because I could be jerk your largest asset. Audra Lowe: Now what about the pensions are those just long things on the pass they went out with the gold watch. Maribel Aber: Well a lot of companies are now moving towards more of the company and define contribution plan. But you should also look to see whether your company has pension plan. Some do, they have the 401K and they have the old pension plan and if they do I talk about going a rolling that over to an IRA. Audra Lowe: Okay. Maribel Aber: Because if you decide to leave it there, your leaving the decisions up to you know the old company and you don’t know that if company’s going to be there. Audra Lowe: Exactly, so in talking about those plans before we go because we know we don’t have much time left though. The 401K plan earnings though, do you have a couple of options out there one thing is to leave your money in your former employers plan. Maribel Aber: Right you could, if they allow you can leave it there okay but you don’t have as many investment choices that are available to you. The second thing is you could move it to your new company’s plan if they’ve got a new company. If they allow it, again you’re limited to the choices there you know whatever they have in there plan but you’re not hit with the tax penalties and you are not hit with that. You could again like I said before for the IRA you can barrow into IRA which I think is the greatest thing. The last thing which is something I definitely don’t recommend and a lot of the industry expert will say they don’t recommend doing it’s withdrawing the funds. Audra Lowe: And so many penalties there? Maribel Aber: So many, you’ve got 20%, you got the 10% and your starting from zero. Audra Lowe: Okay, alright good information thank you so much Maribel. Maribel Aber: Absolutely. Audra Lowe: Will see you again, and if you guys have any questions for Maribel you can always email her and ask Maribel at better.com she does answer them.