On the Beat 7/29/20 - Financial Concepts on 401K Plans

Today, Scott Ferguson from Financial Concepts talks about what do to with your 401k if you change jobs.

Fire re entry animated vo troy: welcome to on the beat, everyone.

I'm over here with scott ferguson from financial concepts, and we're talking about if you change your jobs, what do you do with your 401k?

How are you my friend?

Scott ferguson: doing good.

How are you doing?

Troy: welcome to the show.

I'm fantastic.

Before we get to this topic, last time you were here we were talking about 401k in more detail, and i asked you very quickly if someone's employer doesn't have a 401k plan, can i still make one myself and how do i go about that?

Scott ferguson: that's right.

It depends on what your job is or if you're a contract worker, if you're all those different things, but there are many different ways that you could save, even if your employer doesn't offer a retirement plan.

There's individual iras, traditional iras.

If you're a contract worker, if you're doing freelance things, there's their self individual 401k.

There's such a wide variety of different things.

Scott ferguson: don't be discouraged if you don't have a retirement plan option through your employer.

There are plenty of other ways that you can save for retirement and save for your future.

Troy: and how would one, of course we would recommend they come and see you, but is there any resources that people can log into first so they had some form of knowledge before they come to you?

Scott ferguson: yeah, it's tough, right?

Because we've all been taught how to do a certain job, but how does it actually mean, how we actually manage our money is something that we're typically not often taught.

Right?

So what to do with these different things.

Get on the internet, familiarize yourself with different types of retirement plans.

Just use google.

Use that as a bouncing board and just type in different things.

Search for it.

Scott ferguson: but this is something that i specialize.

I do this day in and day out, helping folks figure out what is the right retirement plan for them.

So let me help and lean on me to do these kinds of things, because whatever job you're doing, i most likely couldn't do it.

But this is something that i think i'm pretty good at and know a lot about.

Troy: okay.

Interesting you say that, because one of our viewers wrote in a question to ask you.

Scott ferguson: okay.

Troy: all right.

And i think it's what most people experience throughout their career.

He was saying that he's lost, he's left several jobs and he's ... several employers have had 401k retirement plans.

What options does he have when it comes time to retirement, or should he be incorporating all of them?

Scott ferguson: that's right.

Because oftentimes today we don't see folks staying at one single place for their entire employment, right?

You're going to work at five or six, seven, eight, maybe even 10 different places over the course of your working career.

So odds are you're going to have multiple different retirement plans.

You could leave them where they are in most cases, or you could choose to consolidate them, which i think would make more sense because you've got different plans here, there, and everywhere.

But are they all working together?

Are they all working for you to make sure you're going to reach your dreams and goals?

I think that consolidating those retirement plans into an individual retirement account or rolling them all into your current 401k could make sense because all your dollars are in one place.

Troy: is there penalties for moving that retirement plan from employer a back into employer d?

Scott ferguson: it shouldn't be any kind of, there's there's no federal penalties for that.

Troy: because you're not cashing it in.

Scott ferguson: you're not cashing it in.

You're rolling it from one 401k to another.

You're transferring it.

So as long as you don't actually take those dollars, get them in your hands to spend it.

As long as it stays in a retirement account, it stays sheltered.

You don't lose any of those tax benefits.

Troy: would i come to you with all my retirement plan portfolios and say, there it is, fix it, put it all into one or do i need my accountant to help?

Scott ferguson: no, no.

This is something that i specialize in and i help folks with day in and day out who've got lots of different things in lots of different places.

Sit down with the adviser.

Bring them everything that you've got.

Let them help you figure out, okay, you've got a, b, c, and d.

What do i need to do to get these all working on the same page and what's the best way to do that.

Troy: i got you ... work for someone who has their own retirement plan.

I didn't have a lot of control.

Okay, but i want to start my own so i can manipulate it and do what i want to do with it.

Where do you, what do you feel about that?

Scott ferguson: that's right.

So inside a company- sponsored retirement plan, you have to play by their rules, right?

They're going to give you fine choices.

They're going to tell you what you can and can't do.

So you have some control as far as how much of you're putting into it.

But how you're actually getting to use it or invest it, you're fairly limited, right?

Scott ferguson: so on the outside in an individual ira, or when you roll things, consolidate it, you've got more control or you can tailor the investments to you.

Well, we're each different.

We each have different dreams and goals.

You may want to do something different, completely different than i'd want to do, right?

And often on the outside, on your own, you can pick things that are tailored to you and your dreams and goals.

Scott ferguson: good job, bud.

Always good information.

Troy: thank you.

Scott ferguson: appreciate you.

If you want to find out more information about scott ferguson, he's the man to help you incorporate it all and get you back on the right foot.

Financial