The Flyer:

In our Ask an Expert Series, the Financial Advisors of Propel address common misconceptions, mistakes, and missing information we see in media stories. As part of our continuing effort to dispel some myths or half-truths you might read on the internet, this blogpost directly responds to an article published by Forbes online titled “Rolling Over a 401(k) to an IRA Can Cost You Thousands of Dollars” by Bob Carlson and published on July 21, 2022.

In our Ask an Expert Series, the Financial Advisors of Propel address common misconceptions, mistakes, and missing information we in media stories. Recently, the New York Times ran an article about the difficult decisions that retirees are struggling with when forced to make a withdrawal from their IRA accounts: “When You’re Forced to Cash Out in a Bearlike Market”.

We often see bad financial advice on the internet and social media. Sometimes the advice is just plain wrong. Let’s walk through an example. A recent financial advice column in The Cut, “I’m Getting Married and Having a Baby. How Should I Plan?”, illustrates some of the dangers of relying on free advice. The column does offer some decent information about joint finances for those engaged to be married. When it comes to her take on 529 accounts, however, we see some questionable advice mixed in with clearly incorrect information.

As financial advisors we spend a lot of time talking about retirement planning, but we can also help you navigate a college savings plan that’s best for your family’s situation. Those who make a plan save, on average, twice as much as those who don’t. First, I want to stress that your priority should always be your own retirement savings. There are no loans available for retirement like there are for college. Being a financial burden on your future children is not a legacy you want to leave.

Some may be eager to sound the death knell for ESG investing, but for now, they are jumping the gun. There are many critics of ESG investing. Take, for example, the below Twitter post. The author posts a chart comparing recent stock performance of fossil fuel companies to the broader large cap ESG index.

This year we celebrate the 25th anniversary of the Roth IRA account type. We recommended them to clients for the entirety of their existence because of their potential for excellent tax savings and liquidity. It was an uphill climb for a very long time; but after years of pontificating, we finally see a general recognition of the account type and a new interest in utilizing it among our existing and prospective clients. Unfortunately, for the first time in the history of the Roth IRA, Congress is threatening to create new restrictions. This makes it even more important to include Roths in your retirement planning sooner than later.