Episode 20260704 - 401(k) Mistakes

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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.

Speaker 2 (00:28):
Call them at.

Speaker 1 (00:29):
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 3 (00:41):
Welcome everyone, and thank you for joining us.

Speaker 4 (00:42):
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 been helping a lot of

(01:03):
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 2 (01:15):
Welcome everyone.

Speaker 5 (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 4 (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 or the language, this is a time
that you need to sit down and give us a call.

Speaker 3 (02:10):
So let's dive into segment one.

Speaker 5 (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 2 (02:16):
Right.

Speaker 5 (02:16):
There's iras, there's fourm 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
to 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 4 (02:49):
Let's make one thing very clear on all the plans
Chris mentioned, these are attacks deferred retirement plants.

Speaker 3 (02:55):
And what does that mean.

Speaker 4 (02:56):
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 a minimum distribution.
But the problem is that it grows tax deferred. And
the problem really is Chris that they don't know what
the tax is going to be when they get to

(03:16):
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 2 (03:24):
Absolutely.

Speaker 5 (03:24):
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

(03:45):
just do the traditional where sometimes they match 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 that we're going to go over. But when we

(04:08):
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 the long term consequences.

(04:28):
So if you're listening now, there's a real chance that
you make in one of these mistakes.

Speaker 2 (04:32):
So let's try to fix them today.

Speaker 4 (04:33):
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.

Speaker 3 (04:47):
That's something that people don't understand.

Speaker 4 (04:49):
Chris, that there's a match and if the matches say
five or ten percent or whatever it is, take the
match because that's free money.

Speaker 3 (04:55):
Right.

Speaker 5 (04:55):
Yeah, let's give an example. We do a lot of
federal employees. We help a lot of federal employees who
listen out there. We understand your benefits. So pick up
the phone, 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 five percent,

(05:19):
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 3 (05:33):
And she didn't know it.

Speaker 4 (05:33):
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 5 (05:39):
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.

(06:00):
If you leave your job, it can become instantly taxable.
And most people have no clue.

Speaker 4 (06:05):
And they don't know that until they get that ten
nine U nine, Andy, 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 5 (06:12):
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, which taking withdrawals early.

Speaker 4 (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, 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

(06:44):
people get shocked, you know, like what happens now?

Speaker 3 (06:47):
So be careful.

Speaker 5 (06:48):
Well, that's the thing 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 fixed
products that help people protect their money. As a registered
investment advisory firm at Maggie Investment Services, we can actively

(07:09):
manage money so we can put together an investment plan,
an income plan, a tax plan, and also we have
clients that work with our attorneys to put together state plans.
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

(07:32):
so you don't get hit with 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 4 (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

(08:03):
and you take the match and you get more in it.

Speaker 3 (08:05):
You can have more for retirement.

Speaker 4 (08:06):
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 5 (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 3 (09:02):
Am I right exactly? And one thing that's very important too.
Be careful.

Speaker 4 (09:07):
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 free account.
So if your employer has a rough a four oh
one k, take advantage of that because it's tax free.

Speaker 3 (09:30):
You won't get the deduction.

Speaker 4 (09:31):
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.

Speaker 3 (09:35):
But if they give you a match, that's free money.

Speaker 2 (09:37):
That's it.

Speaker 5 (09:38):
So pick up the phone, schedule time to meet with us.
Eight three three, Maggi attacks, Let's go over your form
on 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

(09:58):
about taking distributions early. 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 2 (10:08):
The truth is simple.

Speaker 5 (10:09):
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

(10:29):
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 (10:48):
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 Advice K for information on how
you can create a tax free retirement call eight three
three Maggie Tax or visit Maggie Tax dot com. Now

(11:10):
your host with Maggie Tax and Wealth Advisors Robert and
Chris Maggie.

Speaker 5 (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 4 (11:30):
And you know, that's one thing that most people don't
realize they are mistakes and they do have issues.

Speaker 3 (11:35):
So pick up the phone eight three to three, Maggie Tax.

Speaker 4 (11:37):
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 oh one K
that is losing money or I 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 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

(12:00):
we pull up their old plans so let's talk about
why forgotten accounts are so dangerous.

Speaker 5 (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 pre tax, they might have the
after tax.

Speaker 2 (12:13):
They don't know.

Speaker 5 (12:13):
Right, we talked about last segment, the taking loans from it,
taking their 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 formal k's And you mentioned 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

(12:34):
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 they rarely match their
current goals. You know, what is your risk tolerance? And
many people are taking an aggressive stance with their Form

(12:56):
one K. Meanwhile, they might want to be in a
balanced portfolio. These things that we see, what do you
see from them?

Speaker 3 (13:02):
Well, that's the problem. They don't look at it.

Speaker 4 (13:03):
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 for 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 trustee 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.

Speaker 3 (13:39):
What with it?

Speaker 5 (13:41):
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 full one K in account with. Maybe you don't
remember these accounts have been changed. It's so important to

(14:03):
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 Number two mistake

(14:26):
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 4 (14:35):
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.

Speaker 3 (14:43):
And that's what we need.

Speaker 4 (14:45):
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 you can, it's
a trustee to trustee roll over, Chris with there is
no tax and I think most people are afraid, well,
you know it's going to be taxable.

Speaker 3 (15:03):
Yet it will be if you do it wrong.

Speaker 4 (15:05):
And what I mean by that if you say, look,
send me a check and then you put in your account,
you're going to get a ten ninety nine and you're
going to get early penalty withdrawal with the whole thing.
Why would you do that? And now what you're talking about,
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

(15:27):
where it might be better.

Speaker 5 (15:28):
Than what you have. 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 client's putting together a balance sheet, understanding where your
money is at.

Speaker 2 (15:38):
You need to know.

Speaker 5 (15:39):
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 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 conversion, ways to generate tax free money on

(16:03):
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. 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 gotta 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

(16:23):
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 now before
it's too late. Eight three to three, Magi Tax, Pick
up the phone. Eight three three, Maggi 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

(16:44):
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 them
over the right way. Eight three to three Maggie Tax
a couple things.

Speaker 4 (16:54):
If you go to our website, Maggie tax dot com,
we do fourth seminars a month on all of these.
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

(17:15):
may be good for your situation, but look, you can
learn an awful lot. The other thing is, if you
have an IRA four 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

(17:35):
ties together when they retire.

Speaker 5 (17:37):
You know, we just talked about five mistakes between the
first two segments.

Speaker 2 (17:41):
You know, these are just five.

Speaker 5 (17:42):
There's a lot more. So if you've change 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 is another day that
your retirement is at risk. But the fix is incredibly simple.

(18:04):
All you gotta do is pick up the phone eight
three to 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
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

(18:25):
much data to talk about for you, 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 (18:44):
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 you're

(19:06):
host with Maggie Tax and Wealth advisors Robert and Chris Maggie.

Speaker 4 (19:10):
Welcome back to the Maggie Tax and 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.

Speaker 3 (19:19):
So let me kind of recap.

Speaker 4 (19:20):
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 them. A three taking
early 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

(19:41):
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.

Speaker 3 (19:48):
So look, everyone worries about.

Speaker 4 (19:50):
The market, but the truth is far more dangerous because
most retirees 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 to 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 5 (20:09):
You're right, and we're talking about the silent portfolio killers. Gosh,
right there, the silent portfolio killers. These are things that
keep us up at night.

Speaker 3 (20:16):
You know.

Speaker 5 (20:16):
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. 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

(20:38):
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

(20:59):
the attorneys to make sure sure that you have everything
controlled and where the way you want it.

Speaker 2 (21:04):
Eight three three Magi attacks.

Speaker 4 (21:05):
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.

(21:25):
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
free employer money if you leave before it's vested. Chris
and I don't think people understand how that works.

Speaker 5 (21:43):
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 is depending on their plan documents. That's why
it's very important to look at the planned documents. You

(22:04):
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

(22:25):
understand the rules of what you're forming k your current
employer is offering you.

Speaker 4 (22:29):
Exactly and that's important because you don't want to lose
that money. So don't walk away from free employee 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

(22:51):
much stock in a company, talk about what we've seen,
Chris and how this works.

Speaker 5 (22:55):
Many many people we've seen who have maybe worked for
a fortune five hundred company, they have companies 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,

(23:17):
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

(23:38):
time the needles. 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 to mean
with us, let's diversify that portfolio. Let me show you
how to do an income plan and also an investment

(23:59):
plan where you can keep your stock, but make sure
you're probably diversified eight three to three Maggie Tax.

Speaker 4 (24:05):
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 of risk,
or higher risk, where are you Because like Chris said before,

(24:28):
life changes and things change, situations change, so your risk
also may change.

Speaker 5 (24:33):
How important is that totally? 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, 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

(24:54):
way you want to invest, the way you need to invest.
So most people just don't know what they don't know,
but we can help eight three three Magi Tax. So
if you're out there, I have a Form one 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 to three MAGI tax.

Speaker 4 (25:10):
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.

Speaker 3 (25:28):
Important to a lot of people. And then not rebalancing.

Speaker 4 (25:31):
Some people don't even know right now 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?

Speaker 3 (25:39):
Am I Right?

Speaker 5 (25:39):
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

(26:01):
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 the

(26:21):
things we're talking about. So if someone is in that 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 fluster right now, might be confused. But
what's the easiest step to take.

Speaker 4 (26:37):
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

(26:58):
them down. 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

(27:20):
get this all the time. I have a four to
one k. I left a job ten years ago. Was
it still there?

Speaker 5 (27:26):
You know?

Speaker 3 (27:26):
Is it my money? Of course, hits your money.

Speaker 4 (27:28):
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 TECs. Let's sit down and do a
complete review. Because this is your money.

Speaker 5 (27:43):
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. It's just a savings vehicle. It's
up to you to put it together and complete it.

Speaker 4 (27:55):
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 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 tacks. 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 2 (28:13):
I'll tell you what.

Speaker 5 (28:14):
When you do that, you have clarity, you have confidence,
and you have a peace of mind knowing that there
are people there to help you.

Speaker 4 (28:20):
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 5 (28:30):
That's it. 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 them up.
I mean, these are all the mistakes that people are making.
He said, oh, you let it just just hang out.

Speaker 4 (28:40):
But they sit there and they go, well, gee, I
know if I should call anybody, You damn right, you
should call somebody.

Speaker 3 (28:44):
Are you kidding me?

Speaker 4 (28:45):
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're on
what happened to those people ready to retire?

Speaker 5 (28:54):
Well, therese are 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 or they
were overloaded, would stop?

Speaker 4 (29:01):
There you go, there you go, And this is why
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 you the answers

(29:22):
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.

Speaker 3 (29:29):
My son's been here since he's been in high school.
You're not new.

Speaker 4 (29:32):
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 A three to three Maggie taxs.

Speaker 5 (29:43):
You said it the silent portfolio killers instead of option one,
option two, Prompt one, Prompt two at simple eight three
to three Maggie Tax. Here's the truth. 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 2 (30:02):
You can stop it. Though.

Speaker 5 (30:03):
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 2 (30:11):
When would you want to know?

Speaker 5 (30:12):
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.

(30:32):
Eight three to three Maggie Tax. That's eight three to
three Maggie Tax.

Speaker 1 (30:38):
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

(31:00):
host with Maggie Tax and Wealth Advisors. Robert and Chris Maggie, welcome.

Speaker 5 (31:05):
Back to the Maggie Tax and Financial Show and visit
our website at Maggi Tax 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

(31:28):
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 4 (31:39):
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 the war still separate or

(32:00):
someone 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.

Speaker 3 (32:12):
I don't have time. I don't have time.

Speaker 4 (32:14):
Oh, yes you do, because you're going to have no
time if the beneficiary form CRISE is not correct.

Speaker 5 (32:18):
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.

(32:40):
The mistake number eleven is not considering the WRAW 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 to offer you as an employee. So

(33:01):
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 4 (33:10):
And I am running commercials on TV on the 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

(33:30):
you can now, so this is something that we can
help you with a three to three Maggie tax. And
another thing outdated beneficiaries. 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.

Speaker 5 (33:48):
Well this use that word, use it, you know, let's
just bring 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 disappears and goes down the wrong path.
It's misdirection. We don't want that. So what do you do?
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 previous in the show. Many

(34:09):
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
forms and misdirecting your wealth is so important. So that's
mistake number twelve. Mistake number thirteen is not consolidating your

(34:32):
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
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

(34:55):
you need to do with it. You know, do you
invest in the traditional side, invest in the roth side?
If it 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, 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

(35:17):
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 2 (35:28):
Just make it simple for people.

Speaker 4 (35:29):
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 beneficiary is on every account,
your CD, your money market and your money market anything

(35:50):
you have savings account? And then what about your four
oh one K, you four to 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 going to cost you a lot more, Chris at
the end if they don't do it right. Big one

(36:11):
here is 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.

Speaker 3 (36:21):
Reduce the errors.

Speaker 4 (36:22):
I know, you don't sit there and look at your
statements every single day.

Speaker 3 (36:25):
That's what we do, Chris. We see this every day.

Speaker 4 (36:28):
Take the time, give us a call eight three to
three MAGI tax, sit down with us 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 5 (36:39):
So they have it, you know, pick of the phone
eight three to three megatax. Tune in every Sunday to
the mag at Tax and Wealth Advisors show on ABC
TV at ten thirty.

Speaker 2 (36:47):
So this is it. You know.

Speaker 5 (36:48):
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 protect your family, your legacy and everything you've
worked decades to build.

Speaker 2 (37:03):
You've done it.

Speaker 5 (37:04):
You went to work, you put money away, you got
this forum one K, You got a retirement plan. What
do you do with it? Well, get the Maggie 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

(37:25):
Security maximization planning, it's insurance planning, a state alignment, all
working together. That's what we call 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

(37:45):
three Magi tax or visit Maggie tax dot com. Get
the Maggie Plan. A three to three Maggie tax. That's
a three three Magi Tax.

Speaker 1 (37:57):
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

(38:18):
and Advisors. Call them at eight three three Maggie Tax,
or visit them online at Maggietax dot com