Who We Serve: Typical Clients

Kenneth and Gina Fetune

rollover trap

It was a hot July day when we first met Kenneth Fetune, a professor at a university in Michigan. Kenneth is now 72 years old. He and his wife, Gina, 69, reside in Michigan near the university where they both taught for years.

Typically during an introductory meeting, we meet with both spouses to answer questions about our services. But on that particular day, Gina was very ill in Florida, where she had traveled to visit her sister, brother-in-law and nephews. So only Kenneth attended the meeting, and he was understandably stressed out. Also, Kenneth was retiring that month, and believed he was facing a deadline to roll over his university retirement account to an IRA. Kenneth said his neighbor, who was a broker, had told him he would help get his rollover done when he retired.

We told Kenneth he could do a rollover with a broker if he wished, but there was no necessity to do it immediately. Professors can leave their retirement accounts with the university indefinitely, and in most cases, that is what we recommend. With Gina’s illness to deal with, he could use his $150,000 bank account for any unexpected expenses, rather than his university retirement account. Withdrawals from the bank are tax-free – unlike withdrawals from the university retirement account that would be subject to income tax.

Kenneth’s case illustrated that when someone retires, there will be many people knocking on his or her door, trying to get them to move the money somewhere else. Their motivation is to earn a commission for the sale of an IRA product, or for advice. The good news is that in the university environment, professors can take their time and keep assets within their retirement plan.

Thankfully, Gina recovered fully from her illness and the couple is now enjoying their retirement. The Fetunes appreciated our help at a time of difficulty and stress, and as a result, hired us to continue to manage all of their finances. They nearly became a victim of what we call the “rollover trap” for university retirees, but we helped them avoid it.

This material is hypothetical in nature and not intended for use as investment advice. It does not guarantee the attainment of your retirement goals.  Individual results may vary. There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.

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