Personal Finance Blog for Retirement and Investment Advice

Can you Roll Over your 401(k) or IRA into a Bank On Yourself Plan?

One of the most-asked questions we got on last week’s “Ask a Bank On Yourself Advisor” live online event was…

“Can I roll over funds from my 401(k)/IRA/403(b)/TSA into a Bank On Yourself plan – and what are the tax consequences?”

This is actually a common method people use to fund a Bank On Yourself plan.

Here’s how a retirement plan rollover works…

Any time you’re funding a tax-deferred plan – like a 401(k), IRA, 403(b) or TSA – you will pay taxes on your withdrawals. There’s no getting around that.

But if you haven’t turned age 59-1/2 yet, you’ll also pay an additional 10% tax penalty, UNLESS you take advantage of Internal Revenue Code 72(t).

That’s shorthand for a provision in the tax code that allows you to take early distributions from your retirement plan or IRA and avoid the 10% penalty.

You can avoid that penalty as long as the distributions are made as part of a “series of substantially equal periodic payments” (or SOSEPP for short).

Once you start taking these distributions, you have to keep it going for the longer of five years or until you reach age 59-1/2.

There are three different methods you may use to determine what your withdrawals would be. Rather than spell that out here, here’s a link to a list of 12 FAQ’s regarding the 72(t) on the IRS’ website.

Retirement plan rollovers are only one of the 8 common ways to free up money to fund a Bank On Yourself plan

These range from restructuring debt, to reducing funding of your traditional retirement account, converting existing life insurance policies, and tapping your savings.

Moving some of your “safe” money into a Bank On Yourself safe wealth-building plan can result in your dollars working much harder for you, without losing sleep. The return is many times greater than you can get in a CD, money market or savings account – but without the risk of stocks, real estate or other volatile investments.

The Bank On Yourself Authorized Advisors are masters at helping people restructure their finances to free up more seed money to fund a plan (or to start additional plans) that can help you reach your goals and dreams in the shortest time possible – without taking any unnecessary risk.

And click here to learn more about common ways to fund a Bank On Yourself plan.

Stay tuned as I answer more of the most frequently asked questions from the “Ask a Bank On Yourself Advisor” event over the coming weeks.

Add the Bank On Yourself method to your financial plan today

To find out how you could enjoy guarantees and peace of mind by adding the Bank On Yourself method to your financial plan, request your free, no-obligation Analysis right here, if you haven’t already done so.

Request a FREE Bank on Yourself Analysis

How Sequence of Return Risk Can Devastate Your Retirement Lifestyle

There are three words that could have the biggest impact on whether you enjoy a comfortable retirement… or you have to struggle and forego life’s luxuries – and even life’s necessities.

But almost no one is talking about these three words. And there’s a good chance you’ve never even heard of them.

These three words could have more impact on your retirement lifestyle than living longer than you expected… or than being forced to retire sooner than you planned (which happens to nearly 50% of Americans, according to the Employee Benefit Research Institute).

The three words may sound a little technical, but I’m going to make them brain-dead simple to understand. [Read more…]

Slacker’s Guide to Goal Setting

Many of us spend half our time wishing for things we could have if we didn’t spend half our time wishing.”
– Alexander Woollcott

It’s still early in the year and time to set our bright and shiny new goals for the next twelve months, often with the grand title of “New Year’s Resolutions.”

Give me a break!

Aren’t we busy and stressed enough just trying to keep up with where and what we are without the added effort of trying to make our lives better? Why waste our time going after goals when we can put our feet up and watch new episodes of The Good Wife?

Besides, if we set goals, our lives might actually change – and who likes change? We’re all comfy cozy with our current problems and headaches. Why rock the boat?

However, you might be surrounded by obnoxiously chipper goal setters and goal getters harassing you to join them. Ugh!

To keep them off your back so you can join that happy 40% of people who set New Year’s Resolutions and fail within the first month, I’ve come up with some sure-fire tips:

The Slacker’s Guide to Goal Setting

Follow these pointers and you’ll never, ever have to worry about goals mucking up your perfect life! [Read more…]

Expert Interview: Cultivating an Attitude of Gratitude

Did you know there is scientific evidence that gratitude can lower your blood pressure, improve your digestion, reduce your stress and boost your immune system?

And it can have an amazing impact on how you respond to events, people and situations… and how they in turn respond to you.

The wonderful thing is that it can be cultivated and nurtured.  Result:  You bring out the very best in yourself and your life and the best in those whom you love, work and play with.

Buy Catherine Price's book, Gratitude: A NovelIn my 30-minute interview with best-selling author Catherine Price, you’ll discover some practical tips for cultivating an attitude of gratitude – and multiplying your blessings.

Catherine is the author of Gratitude: A Journal (available here on our Amazon store).  It’s a perennial best-seller that gives you a great way to keep a daily record of life’s little blessings, and it’s filled with a year’s worth of insights, prompts and inspiring quotes. [Read more…]

How to Raise Financially Savvy Kids, Teens and Grandkids

Welcome to part three of our Your Money Revolution video training series.

I hope you enjoyed the first two installments on how to spend less without feeling deprived, and “the silent enemy” in your retirement account that could be costing you hundreds of thousands of dollars in stealth fees.

And thank you for all your notes and emails on how much you enjoyed them!

Today, we’re going to talk about one of the biggest money drains on the planet… our children.

Do your kids think money grows on trees? Are you tired of saying “no” to the constant requests for the latest “must have” electronics, gadgets, sneakers, and more? I’ve been hearing for years from readers who say this is a big challenge they face.

If you can relate, you’re going to love this 5-minute video clip that reveals two of eight key money lessons we cover in the Your Money Revolution course that will empower your kids (and grandkids) to be financially responsible for life. [Read more…]

The Secret to Living a Richer Lifestyle while Spending Less [Video]

We had such a great response to the video clip from my new Your Money Revolution financial transformation program I posted a few days ago that I just couldn’t resist giving you another one.

The first clip showed you how the fees charged even by supposedly low-cost mutual funds and ETF’s can devour up to 37% of your account value – and what to look out for.

Today’s video clip will give you an idea of the wide range of strategies and tools we provide you in the Your Money Revolution coaching program for taking back control of your money and finances.

This video clip is less than 5 minutes and shows you one of a dozen ways we cover for spending less – without feeling deprived. In fact, you’ll experience a much deeper level of happiness and contentment. [Read more…]

Your Money Revolution Video Clip: How Mutual Fund Fees are Devouring Your Savings

For the past year, I’ve been working full-time on creating a comprehensive go-at-your-own-pace coaching program designed to eliminate your biggest money worries – and let you take back control of your financial destiny.

I call it “Your Money Revolution,” and initial response to the program has been terrific.

Today I’m excited to share a 5-minute excerpt from this new program with my loyal subscribers.

I want you to be able to see for yourself how truly life changing the information, tools and strategies that I’ve packed into this program can be.

This 5-minute video excerpt deals with how the fees you’re paying in the mutual funds or ETF’s you own in a retirement or investment account may be draining far more of your account value than you realize. [Read more…]

End Your Biggest Money Worries in 90 Days

The top-secret project I’ve been working on for a year is now live!

As I mentioned in my previous emails, it has the potential to completely transform your finances and end your biggest money worries in short order. It’s a culmination of ten years of research… and the result of listening to the concerns of more than 92,000 subscribers to this ezine.

I can honestly say that watching this video I’ve put together for you could end up being the single most important thing you do for your finances – bar none. And as one of my loyal subscribers and supporters, I wanted you to know about it first.

Click here to watch it now.

Here’s a few of the things you’ll discover in this video presentation: [Read more…]

Why Your Retirement Account is Missing $186,000

An eye-opening Report released last month by the Center for Retirement Research at Boston College reveals that the fees charged by mutual funds and 401(k) and IRA plans will slash the value of the typical person’s account by almost 37%!

That means if your account should have been worth $500,000, you end up with only $314,000 – all because of stealth fees that are draining your hard-earned savings! That’s $186,000(!) of your money that will end up in other people’s pockets, not yours.

These money-sucking fees often apply even to funds that track stock market indexes such as the S&P 500… as well as to the “Target Date” Funds that most employers now automatically put employees’ 401(k) money into.

Listen to John Bogle, the founder and former CEO of Vanguard, who many consider to be the father of the indexed mutual fund, quoted in MarketWatch, in February 2014:

Question: “If you pay a hefty fee to an active manager, what happens to your potential return?” [Read more…]