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As a regular part of doing business, producers talk about rollovers when clients terminate employment or change jobs.
Your practice will benefit immensely when you start talking with your clients (and their spouses) about how they can diversify their 401(k) while they are still employed.
To be sure, not all companies permit in-service non-hardship withdrawals. Your income architect at American Financial can provide you with a list of companies to get you started.
Did you know:
- Boomers are turning age 60 at the rate of 7,918 per day! That’s one person every 11 seconds! (Source: www.census.gov, January 3, 2006)
- Boomers turning 60 had an average balance of $112,000 in their 401(k) accounts at the end of 2005. (Source: Gersh on Washington, When Pensions Freeze. February 17, 2006)
Here’s a Real Story…
Recently on a Thursday afternoon, a producer in Illinois delivered a policy to a client. The client had decided to move an old 401(k) from a company he worked for 10 years prior.
During the interview the spouse voiced her dismay that she wished she could do something about her 401(k) at her current employer. The agent agreed but told her that without a separation of service event, they’d have to meet in a couple of years and talk then when she retired.
But it’s not over, here’s the rest of the story…
The following day the agent’s Income Architect presented the ISNHW concept and the agent was able to go back to the client and facilitate an in-service non-hardship withdrawal (ISNHW). Out of a total 401(k) balance of $200,000, the agent moved $169,000 directly to an IRA! As they say, knowledge is power!
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