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Financial advisors...

Localzoo

Board of Directors
Anyone here do advising, specifically with withdrawing lump sum from retirement account.....Or do you know someone or a firm you have worked with?

Thanks.




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JasonC

Members
Edelman Financial services is nearby you in Bethesda. One of the best advisor firms in the nation, and does it fee based instead of off commission. I would look there first.
 

blkmjk

Members
About to head there myself his books are outstanding! Reading the lies about money right now.

Drew
 

JasonC

Members
Its an excellent read... when I get off my duff and get my act together I'll be moving 4 idling retirement accounts to his firm.
 

Leffler817

CCA Members
Depending on the account, don't be surprised to see a 10% early withdrawal fee, taxes on the amount withdrawn, and other 'fees' which may add up to 25%. Be sure to see if you qualify for some of the certain circumstances which allow you to withdraw early. I once qualified as I was going to grad school and needed the money. Read the fine print.
 

Localzoo

Board of Directors
Depending on the account, don't be surprised to see a 10% early withdrawal fee, taxes on the amount withdrawn, and other 'fees' which may add up to 25%. Be sure to see if you qualify for some of the certain circumstances which allow you to withdraw early. I once qualified as I was going to grad school and needed the money. Read the fine print.

Yea that's why I want to speak to someone... Long story short trying to rebuild out home.

I'm so glad my wife already paid off loans for grad school and I'm paying for my own undergrad with a little help from family


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Before taking out a lump sum, check with the employer who sponsors the plan, or their record keeping service provider, to see if you can take out partial withdrawals instead of a lump sum. Not only are there taxes and penalties that will be due, but you will likely lose any beneficial institutional pricing on investments that you are probably getting on the options offered within the plan. However, ifyou are still going shopping for an advisor, ask how he or she is compensated, and whether there are any kickbacks from the investments they recommend to you, along with asking how much they will receive directly from you or your account. There are huge disparities, and you can lose a ton in fees. I'm retiring at the end of the year from 30+ years in the world of institutional retirement plan consulting, mostly 401 (k) plans.
 

Localzoo

Board of Directors
Before taking out a lump sum, check with the employer who sponsors the plan, or their record keeping service provider, to see if you can take out partial withdrawals instead of a lump sum. Not only are there taxes and penalties that will be due, but you will likely lose any beneficial institutional pricing on investments that you are probably getting on the options offered within the plan. However, ifyou are still going shopping for an advisor, ask how he or she is compensated, and whether there are any kickbacks from the investments they recommend to you, along with asking how much they will receive directly from you or your account. There are huge disparities, and you can lose a ton in fees. I'm retiring at the end of the year from 30+ years in the world of institutional retirement plan consulting, mostly 401 (k) plans.

Thanks. It's a little tricky bc it is going straight into the home and might count as an investment.


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Thanks. It's a little tricky bc it is going straight into the home and might count as an investment.


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Another thought.....I don't know what kind of retirement plan you are talking about, but many 401 (k), 4t7, 403 (b), etc. plan sponsors have negotiated to provide financial advice or guidance services through either the plan recordkeeper, or through a third party. Surely, at a minimum, you have an 800 number to reach the recordkeeper, and can ask the phone rep your questions. They may be able to help you figure out the best course of action.
 

Localzoo

Board of Directors
Another thought.....I don't know what kind of retirement plan you are talking about, but many 401 (k), 4t7, 403 (b), etc. plan sponsors have negotiated to provide financial advice or guidance services through either the plan recordkeeper, or through a third party. Surely, at a minimum, you have an 800 number to reach the recordkeeper, and can ask the phone rep your questions. They may be able to help you figure out the best course of action.

Thanks that is def something I didn't think of


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DiscusnAfricans

Past President
Thanks that is def something I didn't think of


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I took a lump sum distribution from a 401(k) earlier this year, and dealt solely with the plan provider; which for me was Fidelity. They explained to me all of the options. I didn't seek an outside financial advisor, but will when it comes to tax time. I used mine to pay for closing costs on our house, so I'm hoping to avoid the extra 10% penalty, but I think most of that is determined when you submit your yearly taxes. Not that I have any expertise, but I went through the process, feel free to PM me if you want.
 
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