Episode 20260404 - 401k Mistakes

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
All these years you've saved up planning for a secure retirement,
but if you're not careful, it will be the irs
that is living it up when you retire by taxing
your hard earned money. Welcome to the Maggie Tax and
Financial Show with Robert and Chris Maggie of Maggie Tax
and Wealth Advisors. With over four decades of combined experience
and tax savings, income planning, and investment opportunities, Robert and

(00:22):
Chris share advice and tax planning strategies designed to protect
your retirement next day from Uncle Sam. Call them at
eight three three Maggie Tax, or online at Maggie Tax
dot com. And now your host for the Maggie Tax
and Financial Show. Robert and Chris Maggie.

Speaker 2 (00:41):
Welcome everyone, and thank you for joining us. My name
is Robert Maggie and I'm here with my son Chris Maggie,
and you're listening to the Maggie Tax and Wealth Advisor Show.
Be sure to visit our website, Maggie Tax dot com
and give us a call at eight three to three
Maggie Tax. Also on Sunday at ten thirty, be sure
to watch our TV show, The Maggie Tax and Financial Show.
Why because we have a lot to talk about. We've

(01:02):
been helping a lot of people with a lot of
different topics and questions, and today we have a real
big question about thirteen mistakes that could cost you thousands.
And I'm gonna let Chris go a little bit deeper
into that, but thank you for joining us today.

Speaker 3 (01:15):
Welcome everyone.

Speaker 4 (01:16):
I am Chris Maggie and I'm so glad to be
here because each and every day we give advice, we
help people, we educate people. Why because you need it,
you know, so welcome to our show. I'm going to
dive into something that affects nearly every listener right now,
and it's thirteen of the most common and most costly
four oh one k mistakes that people are making without

(01:37):
even realizing it.

Speaker 2 (01:38):
And these mistakes can quietly drain tens or even hundreds
of thousands of dollars over time. But here's the good news.
Every single one of them is fixable and you don't
have to fix them alone. And that's what we come in.
Give us a call of eight three to three, Maggie Tax.
This is really important. So that's exactly what the Maggie
Plan is designed to do give you clarity, confident and

(02:00):
a complete coordinated roadmap for retirement. Because if you don't
understand the terminology, well the language, this is a time
that you need to sit down and give us a call.
So let's dive into segment one.

Speaker 4 (02:11):
Chris, that's absolutely you know, let's start here because this
is many people don't really understand what they have.

Speaker 3 (02:16):
Right.

Speaker 4 (02:16):
There's iras, there's four one k's. A four to oh
one K is an employer sponsored plan that if you
work for a company, the company can offer a retirement
plan for you. Now, there's different types of retirement plans.
There's four oh three b's. There's TSP. If you're a
federal employee, it's the same thing pertains to a four
one K. It's a qualified plan, but it's just it's

(02:39):
named a thrift savings plan as opposed to a four
oh one K. There's four fifty seven plans. These are
all qualified retirement plans. But let's talk about four one
ks and also TSPs.

Speaker 2 (02:49):
Let's so they make one thing very clear on all
the plans. Chris mentioned, these are attacks deferred retirement plants.
And what does that mean. It means you're putting money
away on a deferred basis, so that when you turn
fifty nine and a half you could start taking it out,
but then at age seventy two or seventy three, depending
on your birthdate, you have to start taking out the
required minimum distribution. But the problem is that it grows

(03:10):
tax deferred. And the problem really is Chris that they
don't know what the tax is going to be when
they get to that point, because yeah, you get the
tax deduction on the front end, but on the back end,
my goodness, you can get hit with a big tax.

Speaker 3 (03:24):
Absolutely.

Speaker 4 (03:25):
So there's the pre which is the traditional four oh
one K, and then there's the WROTH four one K. Now,
the WROTH is where you don't get a tax deduction
on the front end and all that money that you
put in is tax free in the future. Now, it's
up to your employer to see or offer the WROTH
four to one K option, But a lot of employers

(03:46):
just do the traditional where sometimes they matched your contribution
up to a certain point, sometimes they don't, but also
they might have the four to one K WROTH, And
that's where you want to make sure that you're looking
into that. Go ask to your HR person and if so,
then you also want to ask them if they match
the Wroth contribution. So these are a lot of things

(04:06):
that we we're going to go over. But when we
talk about the mistakes people are making, people just don't
know what they don't know. So let me start with
something that shocks most everyone. Most people are losing money
in their form. Okay, every single month. They don't even
know it. There's big losses. They don't come they don't
just come from the market. It comes from decisions that
people are making quietly without realizing that long term consequences.

(04:29):
So if you're listening now, there's a real chance that
you're making one of these mistakes.

Speaker 3 (04:32):
So let's try to fix them today.

Speaker 2 (04:34):
And the best thing to do is give us a
call eight three to three Magi attacks because there are
ways that you can fix this problem, but you have
to be open and meet with someone to go over that.
So skipping the employee match number one walk away from
free money. That's something that people don't understand. Chris, that
there's a match and if the matches say five or
ten percent or whatever it is, take the match because

(04:55):
that's free money.

Speaker 3 (04:55):
Right.

Speaker 4 (04:55):
Yeah, let's give an example. We do a lot of
federal employees. We help a lot of federal employe If
you're listening out there, we understand your benefits. So pick
up the phone and schedule time to meet with us.
Eight three three magi attacks. But I'll never forget this.
This is client because she was forty two years old,
but she started working as a federal employee at age twenty,
and they had the TSP and they match up to

(05:18):
five percent, and she was not. She was only putting
one percent away in so they were only matching one percent,
but she could have at least put the other four
percent to get five and then she would have a
heckle lot more there on free money.

Speaker 2 (05:33):
And she didn't know it. And when we told her,
because we do a lot with the federal employees, she
was devastated because that's a lot of money that she
lost on exactly.

Speaker 4 (05:40):
So skipping the employer match is quietly, quietly really affecting you.
Losing money over that mistake. Number two taking out four
one K loans. You know most people don't understand what
a loan is. Well, you can borrow from your four
on one K, but you have to pay it back
through payroll. But that's where it can get a little
dicey sometimes you know, you lose growth while the money
is gone. If you leave your job, it can become

(06:02):
instantly taxable. And most people have no clue.

Speaker 2 (06:05):
And they don't know that until they get that ten
nine nine and they go, what's this? But what it
is is you borrow the money, you're not working there anymore,
and guess what you got to pay it back?

Speaker 4 (06:13):
Well, here's the thing though, if they take it prior
to fifty nine and a half, then they're subject to
an early distribution penalty which is ten percent, which leads
us into mistake number three.

Speaker 3 (06:22):
We're taking withdraws early.

Speaker 2 (06:23):
Right, which exactly what you said, the ten percent penalty
plus taxes, and it shrinks long term retirement saving significantly.
Because look, every day we run into problem. So I
get it, and we get calls every day I need
money for this and I need money for that. And
that's fine, we get it, but you have to know
the rules going in that you have to pay it back,
and if you take it out and don't pay it back,
you got a tax and a penalty. Christen, that's what

(06:45):
people get shocked, you know, like what happens now?

Speaker 3 (06:47):
So be careful well, that's the thing.

Speaker 4 (06:49):
That's why it's so important to meet with us because
at MAGA Tax Advisor and Financial Group, we do a
lot of things you tax preparation, tax planning. We help
people in the future we can get the most tax
income on the most tax efficient way. Where we deal
with insurance, we do with life insurance fix products that
help people protect their money. As a registered investment advisory
firm at Maggie Investment Services, we can actively manage money

(07:10):
so we can put the other an investment plan, an
income plan, a tax plan. And also we have clients
that you know, work with our attorneys to put together
state plans. Right so when you put together alone, if
people want to take a distribution, do nothing, you know,
pick up the phone, schedule time to meet with us
before you do it, because let's put together the best
plan to access money so you don't get hit with

(07:34):
taxes or surprises or the early distribution penalty with the
four to one K that you don't have to if
you just know what you know.

Speaker 2 (07:43):
But I think the biggest problem that I see is
that most people think, and it is good to think
this way, put money away so you have money for retirement,
which is great, but it's on a tax deferred basis.
But what people don't explain to you is the tax situation.
If you take it out early and if you let
it grow, which is great, you want it to compound

(08:04):
and you take the match and you get more in it.
You can have more for retirement. But then then when
you retire, Chris, they want to take money out because
they have to take the R and ds out and
now they have a bigger tax problem even though they
did get a tax deduction years ago.

Speaker 4 (08:19):
Well, well, we'll get into that later on the show,
So stay tuned because there's a lot there. We want
to talk about how these accounts are infected with taxes.
So if your account is growing, it might be infected
with taxes and even more tax tax time bomb is
what we talk about, and that could be really hurting
you in the future. So these are things we're talking

(08:39):
about mistakes on your four to oh one K. Many
people have a savings vehicle. It's a great vehicle to save,
but you want to make sure that you're investing in
the right strategy, the right bucket. Maybe the rough form
okay is a better option for you, Maybe the traditional
maybe a combination of both. So that's why we urge
you to pick up the phone schedule time to meet
with us, because before you make these financial decisions, you

(09:02):
have to meet with someone.

Speaker 2 (09:03):
Am I right exactly? And one thing that's very important too.
Be careful. Find out what the match is very important,
even if it's two percent or three percent, and put
up to the match so you have twice as much
as free money. I know it's taxable and it will be,
but at least take take that because otherwise put it
into a roth account roth IArray, which is a tax

(09:23):
free account. So if your employer has a rough a
four oh one k, take advantage of that because it's
tax free. You won't get the deduction. But boy, if
you let that money grow and I don't know if
they're going to give you a match, you'll find out.
But if they give you a match, that's free money.

Speaker 3 (09:38):
That's it.

Speaker 4 (09:38):
So pick up the phone, schedule time to meet with us.
Eight three three magi attacks. Let's go over your formal K.
Let's show you what you currently have. We can we'll
talk about I guess investing as well inside of that
later on. But mistakes people are making, but those are
the three that we're talking about. And during this first segment,
you know, skipping the employer match, most people don't take it,
taking the formal K loans? What about taking distributions early.

(10:00):
If any of these topics hit home, then that's a
good thing because that means you're paying attention to something
that most people ignore until it's too late.

Speaker 3 (10:09):
The truth is simple.

Speaker 4 (10:10):
You are too hard to lose money because of preventable mistakes.
Don't let this moment slip by, So pick up the phone,
schedule time to meet with us eight three to three
Maggie Tax and schedule your complimentary four to one K review.
One conversation could save you years of regret. And if
you don't think that was eye opening, the next segment

(10:30):
exposes a mistake that almost everyone makes, and the cost
gets even bigger and bigger and bigger. Do not move
eight three to three Maggie Tax. That's eight three to
three Maggie Tax.

Speaker 1 (10:47):
Stop funding Uncle Sam's retirement and start planning for your
own successful retirement. As we return to the Maggie Tax
Financial Show with your host Robert and Chris, Maggie with
Maggie Tax and Wealth Advisors for information on how you
can create a tax free retirement. Call eight three three
Maggie Tax or visit Maggie tax dot com. Now your

(11:09):
host with Maggie Tax and Wealth Advisors Robert and Chris Maggie.

Speaker 4 (11:14):
Thanks for tuning in to the Maggie Tax and Financial Show.
And I'm Chris Maggie. I'm here with my dad and
coach of the show, Robert Maggie, and thanks for tuning in.
Because we're talking about a lot of people have this
account and they just don't know that there's plenty of
mistakes made within each and every day.

Speaker 2 (11:29):
And you know, that's one thing that most people don't
realize they are are mistakes and they do have issues.
So pick up the phone eight three to three Maggie Tax.
Let's get together talk about your four oh one K
and what you can do with it. So most people
listening right now have an old four A one K
that is losing money or invested completely wrong and they
have no idea. And what I mean by that is
many of you have changed jobs over the years and

(11:51):
you know, just put the statement in the in the
draw and forgot about it. But every week someone comes
into our office shocked at what we find when we
pull up their old plans. So let's talk about why
forgotten accounts are so dangerous.

Speaker 4 (12:05):
Chris, absolutely, Well, we're talking about the Form one K,
and how important is that many people have these accounts.
They might have the pretax, they'm going to have the
after tax, they don't know. Right, we talked about last segment,
the taking loans from it, taking the early distribution, the
ten percent early distribution penalty. My gosh, there's so much there.
But now we're going to jump into the mistake. Number
four is forgetting those old form ks. And you mentioned

(12:26):
it that. I mean many people come in we see
each and every day, gosh, week after week. These accounts
are unmonitored for years. No one's watching them. They're just
sitting there. They change jobs and they say, well, I've
changed jobs three, four or five times, and they get
all these accounts everywhere. Often they're higher fees than these accounts.
They don't even know what it is. And the investments

(12:47):
they rarely match their current goals. You know, what is
your risk tolerance? And many people are taking an aggressive
stance with their Form one K. Meanwhile, they might want
to be in a balanced portfolio. So these things we
see what do you see from them.

Speaker 2 (13:01):
Well, that's the problem. They don't look at it. And
you just mentioned the biggest thing is what the risk
tolerance is and you have to have that looked at.
So get the time. Make the time to look at
these old form one k's because you may be surprised
that you can do something better. Now. Mistake number five
is rollover mistakes. Wow, this is the one that really
worries me because a single wrong move can trigger taxes

(13:24):
and direct rollovers prevent accidental cash outs. And listen, you
could do a rollover, but do what they call a
trustee to trust thee transfer, which means you don't touch
the money. They don't touch the money. And even if
you do have a check sent to you, Chris, you
have sixty days to do what with it?

Speaker 4 (13:40):
Roll it over without a taxable event. But here's the thing, though,
you want to do it right. So when clients coming
to meet with us, if do you have three four
one k's that are old It might be with Fidelity
or a Vanguard or an Empower or whatever it is.
He is some of the custodians that you might have
a four one K in account with. Maybe you don't remember,
maybe these are these accounts have been changed. It's so

(14:02):
important to make sure that as you move forward, they
come with you, don't leave them behind. So if you
have these accounts, pick up the phone. Let's consolidate them.
Let's show you how to consolidate into an IRA called
an individual retirement account or a ROTH IRA where it's after
tax account. So let's evaluate what you have because as
you mentioned at number one, mistake is forgetting about a

(14:25):
Number two mistake is taking it the wrong way. And
what we do at our clients when they come in
to meet with us, how do we show them to
roll it over without a taxable event.

Speaker 2 (14:34):
Well, number one, we need your statement and that's sometimes
people I don't have my statement. Well, if you think
about where you used to work, you can always call
them and from hr they can give you a statement
and that's what we need. But we'll get on the
phone with you and actually call HRR with you to
find out what the account looks like and they'll tell you, well,
your account is still here. And then the answer that
we're looking for, can you do a rollover? And if

(14:55):
you can, it's a trustee to trustee roll over, Chris,
whether there is no tax, and I think most people
are afraid, well you know it's going to be taxable. Yeah,
it will be if you do it wrong. And what
I mean by that if you say, look, send me
a check and then you put it in your account,
you're going to get a ten ninety nine and you're
going to get early penalty withdrawal the whole thing. Why
would you do that? And now what you're talking about,

(15:16):
we combine these accounts into a better situation. Let it grow.
And if you have one, two or three different four
to one case, guess what, You've got a nice account
that you can put into one and put into one
where it might be better than what you have.

Speaker 4 (15:28):
Now that's exactly right. So consolidation, I mean nowhere your
money is at. That's one of the things we talk
about each and every day when new clients putting together
a balance sheet, understanding where your money is at. You
need to know. And as I mentioned before, I mean
as you move forward, life is happening, right, things are
getting thrown at you. You forget about different accounts, Well,
don't let it happen. That's why when you work with

(15:49):
a firm like ours. Maggie, Tax Advisor and Wealth advisors.
We help people. We help people put together buckets of planning,
income planning, investment planning, roth IRA conversions to generate tax
free money on the most the beneficial way. Do you
have a plan like that? If not, we can help.
So pick up the phone, schedule time to meet with us.

(16:10):
If you have an old four to oh one k
it's okay, take a deep breath, just if you can
remember where it's at. It's all you got to do
is meet with us. We'll do a three way conversation.
We'll pick up the phone in our office. We'll do it.
We'll call, we'll lead with you there. We'll ask the
right questions to help you. Maybe you can roll it over.
Maybe you can consolidate. Let's figure out what you have

(16:30):
now before it's too late. Eight three three Magi Tax.
Pick up the phone eight three three Maggie Tax and
don't forget. Every Sunday on ABC TV at ten thirty,
we have the Maggie Tax and Financial Show. It's thirty
minutes of educational events and that's what we're talking about here.
This is just one segment here talking about your old
four oh one k's and making sure that you roll

(16:50):
them over. The right way, a three to three Maggie
Tax A couple things.

Speaker 2 (16:54):
If you go to our website, Maggie tax dot com,
we do four seminars a month on all of these topics.
So if you go to our website, maggietax dot com,
look on the seminars and you can register see the
location because we do about a thirty forty five minute
presentation on these topics. And believe me, when you come,
it's a lot easier, so you can ask questions. It

(17:14):
may be good for your situation, but look, you can
learn an awful lot. The other thing is, if you
have an IRA for a one K, go to our
website on the top right the retirement Tax bill. Put
your numbers in there, meaning what do you have in
that account, and it'll tell you what your tax is
going to be when you start to take it out.
That is why Chris, they've got to do planning because
all this ties together when they retire.

Speaker 4 (17:37):
You know, we just talked about five mistakes between the
first two segments.

Speaker 3 (17:41):
You know, these are just five. There's a lot more.

Speaker 4 (17:43):
So if you've changed jobs even once, there's a very
very real chance that you have money sitting somewhere that's
working against you, not for you. No one wants that.
So that's why it's so important to pick up the phone,
schedule time to meet with us. Every day that account
goes unchecked, no day that your retirement is at risk.
But the fix is incredibly simple. All you gotta do

(18:04):
is pick up the phone eight three three Maggie Tax,
and we'll track down every account you have. We'll clarify
what you have now, and we'll show you exactly what
needs to be done to put you in a situation
to accomplish your goals. That's what we're going to ask you,
what do you want to do well? If we need
to consolidate, we'll do it in the most tax efficient way.
And because there's so much data to talk about for you,

(18:26):
and you're going to want to stay right where you
are because coming up next are all the silent portfolio
killers draining your retirement without you even noticing. You'll want
to hear this eight three to three Maggie Tax.

Speaker 1 (18:42):
Stop funding Uncle Sam's retirement and start planning for your
own successful retirement. As we return to the Maggie Tax
Financial Show with your host Robert and Chris, Maggie with
Maggie Tax and Wealth Advisors. For information on how you
can create a tax free retirement, call eight three three
Baggie Tax or visit Maggie Tax dot com. Now you're

(19:04):
host with Maggie Tax and Wealth Advisors. Robert and Chris Maggie.

Speaker 2 (19:07):
Welcome back to the Maggie Tax at Financial Show. My
name is Robert Maggie and I'm here with my son
Chris Maggie. And today we've been talking about common mistakes
about four oh one K. So let me kind of recap.
If you have a pen and a piece of paper,
write this down because these are very important. Number one,
skipping the employer match. We worry about that, taking out
four oh one K loans, mistake, Number three taking early

(19:28):
with drawals and forgetting old four oh one K. So
if you have an old four oh one K, let's
take a look at that. And the biggest one is
rollover mistakes because those are common mistakes and this happens
every day. So the biggest thing is we don't want
to see you in those situations because then it can
create more problems. So look, everyone worries about the market,
but the truth is far more dangerous because most retirees

(19:51):
are hurt more by neglect than by market crashes, and
also by the five topics we talked about now. But
the biggest threat to your four one K they're hidden
and they grow quietly over time. So Chris, let's expose
them because these are really important as well.

Speaker 4 (20:06):
You're right, and we're talking about the silent portfolio killers. Gosh,
right there, the silent portfolio killers. There are things that
keep us up at night.

Speaker 3 (20:13):
You know.

Speaker 4 (20:13):
Mistake number six, my dad mentioned the first five. Mistake
Number six is not increasing contributions. You think about this.
Your income rises, your savings should as well. And we
see this many times as people forget, they get an autopilot.
They think what's happening now is going to be the
same thing for the rest of their life, which is
not true. That's why people have to adapt. People have

(20:35):
to make sure they understand what they have. You have
to work with the right people, the right advisors, to
make sure that they're keeping you in line, and you're
keeping yourself in line in a lot of good ways
if you can. And that's why it's so important to
pick up the phone, schedule time to meet with us.
Eight three three Maggie techs because we can help you
put together an income plan, a distribution plan, a roth
conversion plan, an investment plan, and a state plan with

(20:55):
the attorneys to make sure that you have everything controlled
and where the way you want it.

Speaker 3 (21:00):
Eight three three Magi attacks.

Speaker 2 (21:02):
And you make a good point there because think about
this for new people that are starting out. Now, you
know your savings should you know, rise with your income.
So when you start out and you get x amount
of dollars in a year from now, you get more,
take that portion and put it into the four oh
one k so because it compounds and you get more
when you retire. So that's how you build the savings,

(21:22):
and you know that's how you should do it. So
when your income rises, just make a note your saving
should too. That's a mistake them. A seven that we
talk about leaving before vesting. You could walk away from
pre employer money if you leave before it's vested. Chris
and I don't think people understand how that works.

Speaker 4 (21:40):
Well, that's just thing. The vesting schedule is kind of
talk about it. If you have a three year vesting.
Some companies say, well you can get all there of
their matching if you stay the number of years. It
could be a three or five or seven year. Maybe
some companies have a ten year vesting. I don't know
it's beending. It's depending on their plan documents. That's why
it's very important to look at the plan documents. You

(22:01):
can have access to that if you ask your HR area,
because they'll disclose that to you. It's what has to happen.
But anyway, if you know you're going to leave an
employer and you can't wait another two weeks to get
fully vested, then you're missing money. So it's so important

(22:21):
to understand the rules of what your forming K your
current employer is offering you exactly.

Speaker 2 (22:26):
And that's important because you don't want to lose that money.
So don't walk away from free employe money. And you
know how you do this when we make the call,
we actually ask them, you know, is he vested or
she vested? And when are they going to be vested
because you want to know that. So the other mistake
is too much company stock. And I'm going to let
you talk about this because job and retirement tied to
the same risk. So if you have too much stock

(22:48):
in a company, talk about what we've seen, Chris and
how This works.

Speaker 4 (22:52):
Many many people we've seen who have maybe worked for
a fortune five hundred company, they have company stock. And
what we see is they have stock outside their form, Okay,
then they have stock within the form, Okay, then they
have the employee stock option plan. So when we look
at this as a complete plan, a lot of people
have too much company stock. And I know you work there,

(23:13):
I know you believe in the company, but a lot
of people don't have the proper diversification. And that's why
we talk about buckets. Even when we get into advanced
tax planning strategies with NUA net unrealized appreciation with company stock,
there's ways to get that stock out of a company
plan in the most tax efficient way. So if you're
listening and you understand NUA, pick up the phone, schedule time,

(23:36):
the needle lists. We can help you with that. But
not only that is diversification. People have no idea where
to invest the money and they're taking too much risk.
So if you have too much stock in your current
employer plan, pick up the phone, schedule time the meal
with us. Let's diversify that portfolio. Let me show you
how to do an income plan and also an investment

(23:56):
plan where you can keep your stock, but make sure
you're properly diversified.

Speaker 3 (24:00):
Eight three to three Maggie Tacks.

Speaker 2 (24:02):
And you mentioned something about risk because risk levels drift
without you noticing, meaning maybe you're in too much risk
like Chris mentioned, and maybe you need to sit down
and rebalance your portfolio because there are certain portfolios again
and you can talk about this that could help you,
meaning you know, if you're in low risk, meeting and
risk or higher risk, where are you because like Chris

(24:24):
said before, life changes and things change, situations change, so
your risk also may change. How important is that?

Speaker 3 (24:30):
Totally?

Speaker 4 (24:31):
And that's you mentioned a good point, not rebalancing. Most
people just don't look at it once they set it up.
And if you are that person today, that's fine. Raise
your hand in the car, raise your hand as you walk,
and it's okay, no one's watching you. But here's what
you do. You pick up the phone and schedule time
to meet with us. Let's put together your own risk
tolerance today. Let's see what it is, and then let's
match it with your the way you want to invest,

(24:52):
the way you need to invest. So most people just
don't know what they don't know. But we can help them.
Eight three three Magie tacks. So if you're out there,
I have a form on K and you're making these mistakes,
no problem. Now is the time to correct it. You
can't start over, but you can start right now. Eight
three three Maggie Tax.

Speaker 2 (25:07):
So we have a few more to talk about. But
just remember what we talked about not increasing contributions. How
important that is, and let's sit down and talk about it.
Leaving before vesting. If you're going to leave, make sure
you have your vested so you have all the money
that's entitled to you. What about too much company stock?
Sit down and let's take a look at your portfolio.
And this is important to a lot of people. And
then not rebalancing. Some people don't even know right now

(25:30):
that are listening or what we're talking about, because you
know why your four on one K company is not
going to do all of this for you. Am I Right?

Speaker 4 (25:36):
Well, let's just yeah, let's stop right here. So let's
pump the brakes a little bit. If you have a
form one K, people contribute. Let's make it simple. People contribute.
Are you getting the match? Are you not getting the match?
These things that we have to look at But if
you are contributing, you have auto pay, you get paid
every month, money goes into your form one K. Do
you know where it's invested? Do you know what they're

(25:58):
doing with it? Is it rebalanced? Do you have too
much company stock? Are you increasing the contributions as your
increase in your pay increases? But what about the fees?
Are you mistake number ten? Are you ignoring the fees?
Because even one percent difference can cost six figures over time?
So what are you doing about it? These are things

(26:19):
we're talking about. So if someone is in the net position,
what do they do? What can they do? What's the
easiest thing to do If you have a four one K.
People might be flustered right now, might be confused, But
what's the easiest step to take.

Speaker 2 (26:34):
To do exactly what we're doing on the show. Sit
down and get serious about it, because a four to
one K is just not a four to one K
or just not a four point fifty seven or a TSP.
It's a retirement account that you have to pay attention
to because all the things that we're talking about. Go
back and ask your advisor, go back and ask your
your your four to one K company. These questions, write

(26:55):
them down. If you need a list, give me a call.
I'll be glad to give them to you. But ask
them these questions because you need the answers, and if
there's anything that should be done, they should be done now,
not later, because Chris, a lot of people tell us, well,
you know, I never get the call. You're not going
to get the call. They don't have any loyalty to
you to tell you what we're telling you now. And
that's the reason why we're different than other people. We

(27:17):
get this all the time. I have a four to
one k I have I left a job ten years ago.
Was it still there? You know? Is it my money?
Of course hits your money. If you made a contribution,
then yes, and maybe there's a match that the title
to you. When would you want to know? So, Chris,
the simple answer to your question is come in and
meet with us eight three to three, Maggie TACs. Let's
sit down and do a complete review. Because this is

(27:39):
your money.

Speaker 4 (27:40):
Just remember that now, your money you hit on the head.
I mean it's your money that they have no interest
in what you have. That's just a savings vehicle. It's
up to you to put it together. And complete it.

Speaker 2 (27:52):
Do you know how many people tell me and you
every day I can't get in touch on my HR.
I try to call the four to one K and
I can't get the number. It's a recorded line or
hit one, hit two, hit three, no, no eight three three,
Maggie tax And you'll sit down with Bobby and Chris
and my staff and we'll talk to you straight up
when you want that. Isn't that better eye to eye
belly to belly.

Speaker 3 (28:10):
I'll tell you what.

Speaker 4 (28:10):
When you do that, you have clarity, you have confidence,
and you have a piece of mind knowing that there
are people there to help you.

Speaker 2 (28:17):
I think to me, you're not just a number. You're
not just an account that has value. Okay, there's more too, Well,
this is your money. And when the market goes down,
who suffers? You suffer?

Speaker 1 (28:27):
That's it.

Speaker 4 (28:27):
And when you have paying more and fees and you
have no diversification and you do the role of the
mistakes wrong and you're not contributing him up. I mean,
these are all the mistakes that people are making. He oh,
you let it just just hang out.

Speaker 2 (28:37):
But they sit there and they go, well, you don't
know if I should call anybody damn right, you should
call somebody. Are you kidding me? This is your money,
and don't let it just sit there and be You
know what if the company goes out of business, member
world calm and then we'reun what happened to those people
ready to retire?

Speaker 4 (28:51):
Well, there's a stock that people had in their form
and case and then guess what they worked for the
company for so many years they were overloaded with stocks.

Speaker 2 (28:58):
There you go, there you go. And this this is
why I do not be afraid. And I always bring
this up on the radio. My father used to say,
the hell with it. No, that is not the answer.
Sit down eight three to three, Magi tax, give us
a call. We'll spend time with you. Get us, get
us your statements. We'll make the call with you. Maybe
other advisors don't do what we do. We sit there
on the phone. We'll call for you and we'll get

(29:18):
you the answers right there, and then you can ask
the question as we're they're with you because we have
done this, done this for thirty six years. My son's
been here since he's been in high school. You're not new.
This is not a new rodeo, folks. And I know
I sound that way, but it's important because Chris and
I see this every single day, and I hope you
get the message.

Speaker 4 (29:38):
A three to three Maggie taxs. You said it the
silent portfolio Killers. Instead of option one, option two, Prompt one,
Prompt two, it's simple eight three three Maggie Tax.

Speaker 3 (29:47):
Here's the truth.

Speaker 4 (29:48):
You don't lose retirement savings overnight. You lose it little
by little, silently over time. That's why this segment was
the Silent portfolio Killers, because we see each and every day, but.

Speaker 3 (29:59):
You can stop it. Though.

Speaker 4 (30:00):
You can see exactly what's happening inside your Form one K,
you can know the fees, you can know the risk
and your exposure.

Speaker 3 (30:08):
When would you want to know?

Speaker 4 (30:09):
You want to know now, and as simple, pick up
the phone, schedule time to meet with us eight three
three Maggie Tax for your four oh one k X ray.
It's eye opening and it's free. And don't even think
about touching that dial because in the next segment we're
going to review, revealing the one mistake that you cannot undo. Ever,
this is part of what keeps people awake at night.

(30:29):
A three to three Maggie tax. That's eight three to
three Maggie Tax.

Speaker 1 (30:39):
Stop funding Uncle Sam's retirement and start planning for your
own successful retirement. As we return to the Maggie Tax
Financial Show with your host Robert and Chris Maggie with
Maggie Tax and Wealth Advisors. For information on how you
can create a tax free retirement, call eight three three
Maggie Tax or visit Maggie dot com. Now your host

(31:01):
with Maggie Tax and Wealth Advisors. Robert and Chris Maggie.

Speaker 4 (31:06):
Welcome back to the Maggie Tax and Financial Show and
visit our website at maggitax dot com. Maggie Tax and
Wealth Advisors. We are to help in a lot of
different ways. We call it the Maggie Plan. Today we're
talking about the four oh one k and the mistakes
that can haunt your family. And throughout today's show, there's
a lot of mistakes, but what I'm talking about to
tell you is non exaggeration. Your beneficiary form overrides your

(31:30):
will every single time. So let's dive into this that
because this is huge. How many times after all the
mistakes we uncovered in the first three segments, this is
one of the top ones.

Speaker 2 (31:40):
Well it is, and the beneficiary form like Chris said,
overrides your will every single time. So if it's outdated,
then you got a problem. If it's wrong, you have
a problem. And if someone passed away, your money will
still go to whoever is on that form. And think
about it was years ago that you put someone on
that form. Maybe you got divorced or separated, or someone

(32:02):
passed away. This is the mistake that destroys families and
it's one hundred percent preventable. And you know why because
most advisors don't sit down and say, let's talk about
a beneficiary review. I don't have time. I don't have time. Oh,
yes you do, because you're going to have no time
if the beneficiary form curse is not correct.

Speaker 4 (32:20):
That's exactly right, because we don't want to go through probate.
Many people don't understand what that process is. And you know,
we'll have a show on this at some point, but
at the end of the day, just just google what
probate means and how long it takes and what the
costs are. Again, do you want to go that down
that route? Well, if you don't have to, why would
you want to. So let's continue on with the mistakes
that can haunt your family and your Form O K

(32:41):
and mistake number eleven is not considering the raw form. Okay,
we touched on this early at the beginning, but tax
free income later can be a massive advantage for you.
So many people these old form k's the company's member.
It gets up to your plan administrator to put together
what they want want to offer you as an employee.

(33:02):
So maybe years ago you only had the traditional side
of the phone K, but many people have opened the
door to the WROTH for oh one K exactly.

Speaker 2 (33:11):
And I am running commercials on TV on a radio
about ROTH because this is something as a tax person
we see all the time. And you have to start
thinking about taking that tax deferred plan and making a
tax free from a strategic rollout. And this is what
Chris and I do because you want tax free income
and you want to reduce the tax as much as

(33:31):
you can now. So this is something that we can
help you with a three to three Maggie tax. And
another thing outdated beneficiary is this is the one that
Chris mentioned before that we see all the time. One
wrong name can permanently misdirect your wealth. And how many
times have we seen that in different variations well this
uar that word, use it, you know, let's just bring

(33:52):
it up again. Misdirect your wealth. Oh my gosh, that's
so powerful because you think you have things lined up,
but again your wealth disappear years and goes down the
wrong path. It's misdirection. We don't want that.

Speaker 3 (34:04):
So what do you do?

Speaker 4 (34:04):
You pick up the phone, your schedule, time to meet
with us. Let's go over your current form one K
we talked about in the in the previous in the show,
many people have prior companies, prior for one ks, prior
retirement plans. You're moving forward, but those plans are staying behind.
Don't let that happen to you. Let them come with you.
Maybe you can consolidate, but those outdated beneficiaries in the

(34:25):
forms and misdirecting your wealth is so important. So that's
mistake number twelve. Mistake number thirteen is not consolidating your
old accounts. And we mentioned this prior. You know, when
you consolidate means you put things together right, so simplify
as management. It reduces errors and make things simple, and
it also ensures that your strategy stays aligned with what

(34:48):
you want it to do. So pick up the phone
schedule time to meet with us. If you have a
Form one K, don't miss the opportunity to do what
you need to do with it. You know, do you
invest in the traditional side, do you invest in the
roth side? If there's an option, how much do you
put in? Where do you redirect the money to? How
do you set up the right way where it's low fees,

(35:10):
How do you protect it where it's going to pass
where you want it to go. How do you set
it up so it's in line with your risk tolerance?
These are the things my gosh thirteen mistakes that we
talked about today. They're so powerful. So if you're thinking today,
gosh that what should people do if they have a
Form one K?

Speaker 3 (35:29):
Just make it simple for people.

Speaker 2 (35:31):
Well, I don't care if you have a four to
one K or an IRA or a CD or whatever.
You need to come in and meet with us, because
we do it from a balance sheet. What is a
balance sheet? We want to know where all your accounts are,
so that you understand where all your accounts are. We
want to know what your BENEFICIARYA is on every account,
your CD, your money market, your money market, anything you

(35:52):
have savings account? And then what about your four oh
one K, you four or three B, your TSP is
your advisor even mentioning these words that we're talking about now,
it's like you know, alphabet soup. But you have to
understand what to do with everything, and you know, and
it's very simple. There's no cost to it. It's it's
gonna cost you a lot more, Chris, at the end
if they don't do it right. Big one here is

(36:13):
the beneficiaries. We see this all the time and people like,
oh my gosh, what did I do? You didn't do
anything is what you did, and that's why you have
to start thinking about this thing. Reduce the errors. I
know you don't sit there and look at your statements
every single day. That's what we do, Chris. We see
this every day. Take the time, give us a call
eight three to three MAGI Tax, sit down with us

(36:33):
and let's go over every single line that's in your
statements and understand what you have. Eight three to three
MAGI Tax.

Speaker 4 (36:40):
So they have it, you know, pick of the phone,
eight three to three Megi Tax. Tune in every Sunday
to the MAGI Tax and Wealth Advisors Show on ABC
TV at ten thirty. So this is it, you know,
the last Minie mistake is one of the ones that
you just can't fix once it's gone. And that's why
now is the moment that matters. You still have the
chance to p check your family, your legacy and everything

(37:01):
you've worked decades to build.

Speaker 3 (37:04):
You've done it.

Speaker 4 (37:05):
You went to work, you put money away, you got
this full one K, you got a retirement plan.

Speaker 3 (37:08):
What do you do with it?

Speaker 4 (37:09):
Well, get the Maggi Plan. That's a three three Maggie tax,
and let's help you update your beneficiaries, let's help you
streamline your accounts, and let's build a comprehensive plan. Through
the Maggi Plan. It's income planning, it's tax planning, it's
investment planning, it's social Security maximization planning, it's insurance planning,
a state alignment, all working together. That's what we call

(37:33):
the Maggie Plan. It's your plan. It's your plan for retirement.
When someone asks you what kind of plan you got,
you know what you have when you have the Maggie Plan.
That's the power of real planning. That's what we're talking about.
That's the power of knowing, not guessing. Call now a
three three Magi tax or visit Maggie Tax dot com
get the Maggie Plan A three to three Maggie Tax.
That's eight three three Magi Tax.

Speaker 1 (38:03):
Thank you for listening to Maggie Tax and Financial Show
with Robert and Chris Maggie of Maggie Tax Wealth Advisors.
Listen here five to six pm every Saturday and from
eleven am till noon every Sunday, or anytime on the
free iHeartRadio app. And remember you can pay less tax
with Maggie Tax program. Content provided by Maggie Tax Wealth

(38:24):
and Advisors. Call them at eight three three Maggie Tax
or visit them online at Maggietax dot com