For retirees or job changers, we figure out whether you should keep your 401(k) or 403(b) with your previous employer or roll it to an IRA, where I build you a new portfolio. Plus, we look over any pension options for which you may be eligible, review any Social Security and Medicare questions you may have, and examine any group life or disability policies you may want to convert.
I advise you on rollovers from your employer’s retirement plan, including plans in which you own company stock. I then design strategies for income planning during retirement.
You just retired. Along with a great career, you have built up a substantial 401(k) balance. It took a while, but you got the hang of investing in equities: never comfortable with the ups and downs, but always focusing on long-term growth.
However, now you need income, not growth. Over the years you owned some bonds with mixed success. Moreover, unlike your foray into equity investment, this time you cannot afford on-the-job training. You need the income now. Plus, you have less time to recover from any mistakes.
Before you roll over your 401(k) or 403(b) to an IRA, talk to me about the Department of Labor’s new Fiduciary Rule.
The Rule redefines how financial advisors can provide counsel. Making it the most drastic change to employer-sponsored retirement plans and IRAs in the last fifty years.
DOL Fiduciary Rule
The Fiduciary Rule applies mostly to private sector retirement plans, such as 401(k)s, SEPs, SIMPLEs, and 403(b) plans that fall under ERISA.
- When a financial advisor recommends you roll over your 401(k) into an IRA, the fees in the IRA should be the same (or less)than what they were in the 401(k).
- If they are not, your financial advisor must pledge to do what is in your best interest.
The Best Interest Contract Exemption
There are two types of best-interest contract arrangements, and how your financial advisor is paid determines the one used:
- If your financial advisor receives a commission or what we call variable compensation
- If, however, your advisor charges a level fee, as opposed to a commission, no signed contract is required.
Investment Advisor Representative
39 Braddock Park #5
Boston, MA 02116
126 Horseneck Road
S. Dartmouth, MA 02748