Episode 153: One Easy Way to Simplify Your Retirement
Today’s Prep:
How can you simplify your retirement and why does it matter? David shares why you may want to consolidate your retirement savings and the three ways it benefits you.
Equipping Points:
What’s one easy but important way to simplify your retirement? Instead of making it more complicated than you need to, consolidate it into one retirement bucket to simplify things. On today’s show, David will talk about the three benefits you’ll get once you consolidate.
To start, you’ll have less information to keep track of. Are you juggling between different statements, different custodians, and different beneficiaries? This can be overwhelming and hard to remember everything. Having it all in one place can help you better see what you have and where it’s going.
If you have all of your retirement investments in one place, you’ll have a wider array of options to choose from. Your performance will probably increase because you’ll have access to more and better investment alternatives. Instead of leaving your retirement savings with a former employer, rolling it over to an IRA will give you more flexibility and control.
When it’s time to take out RMDs (required minimum distributions), if you have old 401(k)s with former employers, you will have to take out an RMDs from each account. If you have them rolled over, you can add up the total and take one distribution. But it can be a nightmare and total complication if you have several separate 401(k)s to take distributions from. Not to mention, you don’t want to overlook this and have to pay the penalty if you forget to take out your RMDs from every account you have.
If you’re going to consolidate everything, you’ll want to work with the right advisor to help you. You want someone who will help you manage your plan for you, someone to understand the tax implications, and someone who is a good communicator.
Listen to the full episode or skip around to certain topics.
2:37 - Way less information to keep track of.
4:32 - You’ll have access to more options.
5:35 - RMDs can be a nightmare if they are still with former employers.
7:50 - David shares a client story of someone who needed to consolidate.
Today’s Takeaway:
“Maybe the biggest benefit is, you’re going to get your beneficiary squared away such that when you die, your money is going to go to who you want it to go to. "
– David Dickens
KC Financial Advisors Blog


