Retiring a 401(k), IRS Ghosting, and Target Date Funds

This week on Upticks, join me and Cory for discussions on tax planning, 401(k) management, and more.

If you call the IRS, you might get ghosted. When you retire, you’ll have options for your 401(k). If you invested during the rally, you might be paying the price. Target date funds might be missing the mark. Tune in for insight on these topics!

Thank you for joining us this week! If you have a topic that you would like us to discuss or debate live on Upticks, please email it directly to Luke at?[email protected] ?and he’ll be sure to ask us to bring it up on the show!

Order ‘Retiring Right’ Today: https://a.co/d/geeSRDy

Read a summary of the conversation below:

Listener Suggestion

The podcast begins with a warm welcome from hosts Jake and Cory, who discuss the growth of their client base at Falcon Wealth Advisors. Jake shares his excitement about meeting new clients and mentions some personal updates, like the addition of wallpaper on his ceiling. Cory shares a personal update about his daughter turning two months old and highlights the importance of audience engagement by encouraging listeners to submit questions. One listener’s question about a property tax credit program in Jackson County, Missouri, sparks a detailed discussion on the topic.

Millions of Taxpayers Call the IRS for Help. Two-Thirds Don’t Reach Anyone.

The hosts dive into a discussion about the inefficiencies of the IRS. They highlight a startling statistic: millions of taxpayers call the IRS for help, yet two-thirds never reach a representative. Despite hiring 7,000 new employees, the IRS still struggles with long wait times and a backlog of identity theft cases. Jake questions the effectiveness of simply increasing staff numbers without addressing systemic issues. He suggests that the IRS should consider process improvements and technological investments to enhance service delivery. Cory adds that the IRS employs nearly 94,000 people, yet the inefficiencies persist, raising questions about resource allocation.

What Should You Do with Your 401(k) When You Retire?

The conversation shifts to retirement planning, specifically what to do with a 401(k) after retiring. The hosts outline two primary options: leaving the money in the 401(k) or rolling it into an IRA. They discuss the pros and cons of each choice, such as investment options, costs, and accessibility. Jake emphasizes the importance of working with a fiduciary to make informed decisions that align with one’s financial plan. He also warns against advisors who might roll over 401(k)s into more expensive products without providing additional value.

Investors Borrowed Like Crazy During the Rally. Now They’re Paying the Price.

The podcast touches on the consequences of investors borrowing heavily during market rallies. The hosts discuss the risks associated with leveraging investments and the potential financial strain when markets turn. They stress the importance of understanding the risks involved in borrowing to invest and recommend consulting with financial advisors to make prudent decisions.

The 401(k) Investors Convinced That Target-Date Funds Miss the Mark

In the final segment, Jake and Cory explore the skepticism some investors have towards target-date funds. They discuss the limitations of these funds, such as their one-size-fits-all approach and potential misalignment with individual retirement goals. The hosts suggest that investors consider alternative strategies that offer more customization and alignment with personal financial objectives. They conclude by advising listeners to evaluate their retirement plans carefully and seek professional guidance to optimize their investment strategies.

Thank you for tuning in, we hope you have a great week!

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