A plan is setup to reach a goal, in this case retirement. Sometimes obstacles such as work or life get in the way and how we once saved is no longer possible and we cannot complete what we started. There are solutions to solving this problem that allow individuals the rights to certain parts of their saved monies.
And we want to address the question today,
“What happens to your retirement plan if you don’t complete it? If you stop working, if you don’t put money in anymore?”
Can you access the money?
This is a very important question that many people have never considered. You know, it depends on the type of plan you have. Obviously, if you have a 401K or an IRA that’s dependent on your contributions, if you stop putting money in, then that plan is going to have whatever balance it is plus the future growth.
What most people don’t realize is because that is a qualified retirement plan, even though you quit working and you’re not adding to the plan, you still do not have access to that money all the way until you reach qualifying retirement age, which is fifty nine and a half.
Many folks don’t realize that until it’s too late that all that money they saved is simply not available to them.
Well, the good news is there are alternatives.
And I would like to explain to you that you can opt for a plan, such as ones we help people with at Barber & Associates, that when you stop working and you don’t need to contribute anymore that those monies are immediately available to you so that you can use them for whatever purposes.
If you still want to let them grow to provide a retirement income in the future, that certainly is an option. But you’re not restricted as you are under many retirement plans that those monies are not available to you.
So this is a very important issue when you’re looking at your retirement plan. What happens to that money if you leave that employer and you don’t need to add to it anymore?
Finding the answers
I created twenty videos responding to the most important questions that people ask me about their money, their financing, their investment, and their retirement plans.
These are available to you free as our gift here on our website, BarberAssociatesFinancial.com.
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