The average American will have 12 jobs during their lifetime. You’re always going to have a lot on your mind when you switch jobs. That means it’s easy to forget key details like rolling over your 401(k). There are a few things you need to know if you are planning to do this.

How Much Time Do You Have To Make This Decision?

Assuming your employer sends disperses the balance to you, you’ll have 60 days to complete a 401(k) rollover and ensure it ends up in an eligible retirement account. If you don’t do it within this time limit, you’ll be faced with an early withdrawal penalty and income taxes.

Are There Alternatives?

You do have alternatives to a 401(k) rollover that you can explore. Your options depend on how much you have in your 401(k) and what policies are in your summary plan. For instance, if you have less than $1,000, then you can get a lump sum from your previous employer (even if you didn’t request it!).

If this happens automatically, you still have 60 days to roll it over to your new 401(k) and avoid a 10% penalty tax and income taxes. If your previous employer had taxes withheld from the lump sum, be sure to add those back in when you roll your money over, or you may have a 10% penalty on the amount withheld.

If you have between $1,000 and $5,000, and you didn’t opt to have your funds rolled over to a set account, then your employer may be required to transfer these funds to an IRA.

If you have at least $5,000 in your 401(k), you need to provide consent for your employer to do anything. You can roll it over or cash it out. It could be worth speaking to a financial planner or financial advisor if you are not sure which option is best for you. Advanced planning techniques such as converting from a traditional 401(k) balance to a Roth IRA account or timing disbursements are best discussed with a financial planner to understand how these changes impact you today and in retirement.

What About Old 401(k)s?

It’s more common than you think for people to forget about 401(k)s completely. The good news is these stagnant 401(k)s have no specific time constraints on moving the account. But if you want to cash out, then the 60-day limit stands to place it back into a qualified account. You may also elect to have the 401(k) custodian issue a rollover check, which does not allow you to cash it, but to deposit it for your benefit directly into an IRA account avoiding the 60 day time limit altogether. It’s also worth noting you can only use a 60 day rollover once per calendar year. Institution to institution transfers and rollover checks can be used as much as you like.

We hope this helps you understand how much time you have to roll over your 401(k) from a previous employer. If you have more questions about this decision, it’s always best to get support from a professional wealth management service.

WICHITA, Kan. (KSNW) — In the wake of The Federal Reserve once increasing interest rates, this time by another three-quarters of a percent, nearly everyone will feel that interest rate increase.

But while experts say that increase is pretty substantial, it will deal a blow to some loans much sooner than others.

“Variable is going to get hit first, and that happens to be on credit cards,” Michael Proctor, President, Leading Edge Financial Planning, LLC, said. “So, not only are you paying a higher interest rate, you’re paying the higher cost of living at the store, at the gas pump, pretty much everywhere right now.”

Proctor says while many providers will alert consumers of an interest-rate increase in the coming weeks, others won’t, and it’s not required of them to do so.

“A lot of times, it’s built into the terms when you sign up for it — it will be prime plus a certain amount, so you may want to bump up what your payment is,” Proctor said.

Proctor says while it may seem tempting for those with credit card debt to sign up for a 0% interest rate credit, that can create its own set of problems.

Money might not be the number one most important thing in this life, but you should never overlook the need to achieve financial stability. When your finances are in good health, it will provide the perfect platform for building a happier lifestyle. Working with a financial advisor can work wonders for your personal and family wealth management.

Before hiring a financial planner, however, it’s vital that vindicate your decision. To unlock the full benefits of professional wealth management, it will be necessary to work with a reliable team of financial advisors who deliver a comprehensive and tailored approach. Here are 10 reasons why expert advice can benefit your present and future.

#1. They’ll improve your financial situation

Many people assume that hiring a financial planner is another added expense, which is one of the primary reasons that they resist reaching out for help. However, an experienced professional will boost your wealth to a level that easily outweighs their fee. When added to the time savings, which will allow you to focus your energy on making money at work or enjoying life with your family, their value for money is clear.

Financial advisors can support you through an extensive range of financial issues (as will be discussed below) to transform your finances with stunning results. Their knowledge of financial matters, combined with a dedication to understanding your situation, will translate to significant improvements. Given that 77% of Americans admit to having anxiety over their financial situations, there has never been a better time to take note.

Your immediate and long-term financial future will look far brighter as a result.

#2. You will learn to protect your finances for life

A financial advisor won’t only identify potential areas of improvement. They will also provide a financial education to help you understand the reasoning behind certain decisions. This will ultimately enable you to develop a healthier approach to wealth management to benefit your immediate and long-term future. Knowledge is power, especially when it comes to avoiding common financial errors that could cost you dearly.

Statistics show that only 44% of Americans implement a budget. Poor organizational skills will naturally hold you back, not least because you could encounter hidden costs. Wealth management teams can help you avoid this issue while simultaneously helping you build a strategy to manage debt and prioritize high-interest accounts, for example. Similarly, you will learn to appreciate the impact of reduced expenses and how to achieve them.

With the right support from a financial advisor, you can begin a new and improved chapter.

#3. They will help you plan for your retirement

True financial stability doesn’t solely come from securing your situation today. It’s equally important to consider tomorrow. Retirement planning has become an increasingly central feature of astute wealth management, not least because we are living longer and encountering increased living costs. A 401K rollover to a new or existing traditional IRA is one key area where an expert opinion could add thousands to your long-term finances.

The 401K rollover is a move that opens up more flexible investment choices while simultaneously delivering better communication, lower fees, and cash incentives from institutions that want your retirement business. Financial advisors will weigh up the pros and cons of each route to ensure that your savings are used to their full potential, this can be supported by other retirement planning strategies for a comfortable future.

Starting sooner will allow you to see greater rewards, and a financial advisor will help.

#4. Taking the right steps will protect your family

Nothing in this life matters to you more than your family. Therefore, it is vital that you take the necessary steps to protect them from a financial outlook. Estate planning will play an essential role and is a responsibility that you should acknowledge even when you’re still young. It’s always better to take caution, not least because it will deliver the peace of mind that you deserve. Navigating the life insurance market will form a crucial first step.

Estate planning will also involve ensuring that your will or trust is watertight and built to ensure that your beneficiaries avoid excessive inheritance taxes. If you have a prenuptial agreement in place from your marriage, financial advisors can advise you about the impact that this will have. Additional features can include paying for your funeral in advance and taking care of other financial matters that may be required after you pass.

Losing a loved one is difficult. Removing the financial burden will enable them to grieve.

#5. Financial advisors help navigate the home buying market

Financial advisors can assist you with a range of financial matters, including seemingly small issues. However, it’s their support with purchasing a property that can transform your financial health to the tune of a four, five, or even six-figure sum. By analyzing different mortgages and financial products, a financial planner could reduce your monthly repayments. Over the term of a 25 or 30-year mortgage, the impact could be thousands in savings.

Alternatively, their ability to unlock a better deal could enable you to purchase a bigger property. Roughly 7 in 10 homeowners have at least one regret about their purchase, and it often relates to underestimating the costs. When you gain expert advice that encourages you to take legal fees, marketing costs, and other features into account, you will avoid nasty surprises. It will subsequently save you from putting unnecessary strain on your finances.

In addition to buying a home, financial advisors can help you with investment real estate.

#6. They help build diverse investment portfolios

When looking for financial advice on investments, there are ultimately two main goals to consider. Firstly, you need to know that there is an opportunity for your wealth to grow at a rapid pace over time. Your capital should appreciate at a faster rate than a traditional bank savings account while also outperforming the rate of inflation, which can be multiples of the original amount with compounding interest. Secondly, minimize your risk where you need income producing investments in the short term. A financial advisor can help you build a diverse portfolio to do this.

Diversification means that the implosion of a single venture will not blow your finances apart. A combination of higher-risk/higher-reward assets can be combined with more stable investments with lower but stable ROIs to strengthen your overall strategy. Incorporating crypto or cryptocurrency is very risky and an advisor can help evaluate the risks for your situation. As well as developing your investment portfolio, wealth management advisors can keep an eye on the performance of your investments to ensure that your success is maintained.

In turn, this will enable you to consolidate gains to reach your financial gains. 

#7. Financial advisors help you determine your objectives

No two people are the same, which is why your financial strategy should always be tailored to align with your personal requirements. Hiring a financial advisor who takes the time to analyze your current situation and future expectations will ensure that you gain the best possible advice. Conversely, trying to use generic guides from books or the internet will only deliver limited results. 

It’s impossible to find the right road to success if you have not determined the intended destination. While research in the UK suggests that 69% of young adults have financial goals, the majority don’t set realistic targets accompanied by clear strategies. Working with a professional to sit down and review your aims will subsequently ensure that the positives and negatives of all opportunities are scrutinized in relation to your main objectives.

In turn, it should help you maintain the winning mindset needed for ongoing success.

#8. Make debt repayments manageable

Building your wealth through smart investments and financial decisions is vital. When you’re trapped in the endless cycle of debt, though, you will struggle to think about any other financial decision. As already stated, a financial planner can help you learn to prioritize debts with high-interest rates. Alternatively, they can help you implement concepts like the snowball effect of clearing the smallest debt before moving on to the next.

Debt repayment can also be made easier by negotiating plans with creditors. In some cases, it may be possible to cancel some of the debts or put a stop to accumulating interest. Debt consolidation and other tools can be used to great results. For entrepreneurs, it may be possible to leverage debt to increase financial growth. Working with a financial advisor enables you to pursue every avenue until the best results for your finances are found.

#9. Experts analyze issues without emotional connections

Whether you’re looking to reduce your financial loss or increase your investment gains, acting without emotion is hard. You could easily invest in a friend’s business or make a decision because a loved one has talked it up. When hiring a financial advisor, you don’t just pay for their experience and expertise. Perhaps most importantly, you gain the support of someone that works with just one question in mind: is it the best financial decision?

Of course, there are circumstances where financial decisions made on emotion can work well. Still, it should not be forgotten that 66% of investors regret impulsive and emotional trading. A financial advisor uses statistical analysis of all available data and market trends to determine what is right for your finances. This can include harsh but necessary insight into cutbacks or difficult decisions that may be required.

Your financial approach will soon become a process solely about wealth building.

#10. Their support will put your mind at ease

Finally, there is no greater reward than knowing that you’ve made the right choice for your family. Money matters can get complicated, especially as there are so many facets that will contribute to the overall situation. Whether looking for general advice or specialized insight into a particular aspect of wealth management, like your 401k rollover, doesn’t matter. An expert’s help will lift a weight of stress from your shoulders with immediate results.

To gain further insight into how a financial advisor can help you, schedule an Introductory meeting with one of our advisors at Leading Edge Financial Planning. We have offices, in Wichita, KS, Overland Park, KS, Pagosa Springs, CO and are available virtually in the United States. 

Their support can also help you think about credit score building.

Many students and parents start their college search by creating a long list of potential schools. Narrowing down that list isn’t always as fun, but getting the most Return on Life from college requires families to balance dreams and practicalities. Start focusing your own college search by answering these three important questions with your high schooler.

1. What are my child’s goals?

The student debt crisis and 2020 COVID-19 lockdowns forced many families to reevaluate what college is really for. Yes, parents want their children to gain independence, develop socially, and have some fun. But the price tag associated with those experiences is becoming harder for many families to justify without a clear educational goal.

That doesn’t mean that your 18-year-old should have their entire life mapped out by the time they graduate high school. Multitalented students who are still exploring might look to schools with strong liberal arts programs that will help them focus their interests into a career. On the other hand, if your daughter has been giving her stuffed animals medical attention since preschool, have a conversation to make sure she is certain about investing time and money into what will be a very challenging — and expensive — academic track.

2. What are my child’s Needs and Wants?

The educational goal you determined in step one should also be at the top of both your child’s Needs and Wants for college. Next, discuss the other items that fall into those categories. Be strict about keeping these Needs and Wants separate, even for things that might blur the boundaries.

For example, is going to a large school with Greek life and a great football team really a Need? Or could your daughter see herself flourishing just as well at a smaller school where learning and social life might move at a slower pace?

Does your son Want to go to school in a big city? Or do you both feel like he Needs to expand his horizons and interact with a wider variety of people to mature personally and succeed professionally?

There are no judgments here, no right or wrong answers. The goal is to gain some clarity on what’s really important to your child so that you can match those key characteristics with an ideal school.

3. How are we going to pay for college?

When you were preparing for college, your parents might have called this “The $64,000 Question,” in reference to the old game show. Today, according to recent studies by the Education Data Initiative, figuring out how to pay for a bachelor’s degree could be more like a “$400,000 Question.”

Going to college doesn’t just delay your child’s income earning by four years or more, it can also deplete savings and create debt. And that’s before weighing in factors external to tuitions, such as the cost of textbooks, transportation, and basic living expenses. Outlining these total costs might cause you and your child to look back on those Needs and Wants with a different perspective.

Like any other aspect of your financial plan, the sooner we can anticipate a major transition or expense, the sooner we can start planning for it. Many of our clients plot Sending a Child to College on their $Lifelines while their children are still in grade school. With that kind of foresight, we’re able to explore options like 529 accounts that can supplement savings, scholarships, part-time work, and low-interest student loans.

But even if you and your high schooler just had your first-ever conversation about paying for college, your financial plan gives you options. Make an appointment to speak to one of our advisors and we’ll help you get your child the best education possible with the money you have.

Wishing you the best Return on Life and education,

Mike