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Mar 3, 2022

On today’s episode, we are going to have some fun and answer a potpourri of financial and retirement-related questions. We will explore some of the questions sent in to the show and how they relate to your financial future. 

Pat asks “I have two old 401(k)s, is now a bad time to roll them over?”  We are going to assume your 401(k) is inside of mutual funds. If you are immediately going to sell and put it somewhere else, there won’t be much of a big-time gap. In that case, it probably isn’t a big problem. 

But if you were thinking about waiting for the market to recover before putting it into a Roth you want to be careful and discuss this with your advisor. 

Lucy says, “As part of my divorce settlement I am receiving a portion of my ex-husband's pension for as long as he is alive. Should I take a life insurance policy out on him in case he dies before I die?” 

If Lucy’s ex-husband dies before her, she could lose a big portion of her retirement income. If he is insurable and can afford it a life insurance policy would be a great way to protect herself. 

In some divorce settlements, we see life insurance policies that cover this kind of situation. We don’t want to have anyone left with a big gap in their retirement income. 

Chris says, “I owe $21,000 on my truck, but it’s the only debt I have. I just turned 59 ½ and I can take money out of my 401(k). Should I take a withdrawal to pay off my truck?” 

What type of interest rate do you have on the truck? How long until you pay it off otherwise? Is there a pressing need for you to have no debt? 

You need to consider these questions against your 401(k) earning and the tax bill you’ll owe. As you enter the retirement red zone, these decisions can become a little dicey, so you’ll want to consider the best decision for your situation with your advisor. 

Rose asks, “How much is too much to spend on our forever home?” 

The right price to pay for your forever home is going to depend on your retirement lifestyle. Let’s suppose you want to travel. Having a house without a large mortgage frees up money for travel and hobbies. A smaller home would be great for these retirees. 

Other retirees want to be active at home. Do you want to do a lot of entertaining and host family and friends in your home? In this case, a bigger home might be the right fit. There isn’t a universal “correct amount” to pay for a home. You have to decide what will make you happy in the long run. 

If you ever have questions similar to these and want more in-depth and personalized advice give us a call and we’d love to discuss your personal retirement future! 



1:41 – Putting together a community event

2:48 – “Is now a bad time to roll over my 401(k)s?”

4:21 – “I am getting a portion of my ex-husbands pension; should I take a life insurance policy out on him?”

9:00 – More about our community event

11:45 – “Should I make a withdrawal from my 401(k) to pay off my truck?”

15:30 – “How much is too much to spend on our forever home?”