Broker Check

Coming Into the Red Zone

| November 21, 2019

Since we are in the throws of football season, the symbolism was too tempting to pass up.  You must be living under a rock not to have heard about some of the recent highs in all the markets.  We have experienced one of the longest Bull Markets in history.  So, what about that 401(k)?  Have you looked at it lately?  Will you be retiring in the next few years?  Do you want to make some changes that might carry you into the retirement end zone?

If you are at least 59 and ½ and your plan allows it, now might the time to take what is called an in-service distribution.  70% of all plans offer this, but it isn’t always easy to find out and may take a couple of phone calls to your plans administrator to find out.

The strategy is this, you have gotten some gains in the market and may want to lock them up in another qualified account.  You may not be satisfied with all the investment options that your plan currently has and you may want to put them into another account that has investment options that are better suited to your goals.  You may want to buy an annuity and set up a guaranteed stream of income further down the road to supplement your social security check or help you delay taking your social security altogether. 

The three most important considerations to this strategy are: 1. Does your plan allow it?  2.  Are you at least 59 ½ years old?  3.  You will need to put this money into a qualified account, an IRA.  Depending on how you feel about the direction of the market and what your retirement plan looks like, this is worth careful consideration.

We would be happy to help you explore whether this a fit for you or not, so call us today at 256-417-4870.




Mike Mickels is President of CochranMickels Retirement Specialists and an avid sporting clay competitor. CochranMickels Retirement Specialists provides personalized planning and investment services to individuals approaching and in retirement. They also provide retirement and benefits training to Federal employees. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc, a Registered Investment Advisor. CochranMickels and Cambridge are not affiliated.