Pandemic Finance for Beginners

[sharon sanders]

For a start we are going to talk about 403B plans. These are retirement plans that are usually:

1) A custodial account invested in mutual funds, or

2) An annuity contract through an insurance company.

You need to know what kind of control you have over the decisions made for these accounts. Also talk to the plan administrator about the time frames for changes.

The safest vehicles in the pandemic for investing, if you are locked into a retirement plan, are U.S. backed treasuries. Find out what kind of mutual funds you are invested in. If you are invested in an annuity through an insurance company, find out what kind of penalty there is for withdrawal.

 

[Katseye]

Re: Pandemic Finance for Beginners

For a start we are going to talk about 403B plans. These are retirement plans that are usually:

1) A custodial account invested in mutual funds, or

2) An annuity contract through an insurance company.

You need to know what kind of control you have over the decisions made for these accounts. Also talk to the plan administrator about the time frames for changes.

The safest vehicles in the pandemic for investing, if you are locked into a retirement plan, are U.S. backed treasuries. Find out what kind of mutual funds you are invested in. If you are invested in an annuity through an insurance company, find out what kind of penalty there is for withdrawal.

Might also want to add that if you leave a company that has your 401k you need to move it within the the 60 day (if i recall correctly) time period. You either roll it over to your new company if they accept them or you roll it into a rollver IRA.

If you leave it with your former company you will not be able to do anything with it (as in add to it). You have very little control over it.

While it is in a 401k with your company the normal charges to take money it out is 28% for federal taxes and any state taxes and sometimes an additonal 10 % depending on your company and tax bracket.

Now if you are in a rollover IRA then the only fee/charge is 10% to withdraw the money unless you tell them to withhold more for tax purposes. And you can add to it yearly which this years cap amount is 4k.


(i just did this last month from my old company so this is why I know all the numbers =p)