this is Chantay Moore. I am a Certified Financial Educator and
I wanted to welcome you to my first video log of 2019. So today, in my video,
I wanted to talk to those people who are close to retirement,
specifically if you are 50 years or older. Because you are in what I call the
“Retirement Red Zone”. You’re about 5 to 10 years away from
retirement and you actually are in a key critical point in your life where we
really need to be having these conversations about controlling your
money and protecting it. And the reason why I’m talking about
this is because I’m getting a lot of questions these days about you know,
what to expect with the stock market. We’ve been seeing a lot of volatility
happen, especially at the end of the year at the
end of 2018 and going into 2019. And it’s honestly expected to increase.
And I know its happening more and more. So what I’m talking about is that the
stock markets are going up and down very noticeably every single day,
which means that if you have any type of investment account or retirement
account, the same thing is happening with those
accounts as well. So,
today I wanted to just kind of talk to that group because,
you know, when I do investments and I manage a lot
of people and their investment money, before I even start investing the money for them, I send out a questionnaire and a lot of
times the questionnaire, well, let me break it down, the questionnaire will ask people,
what is your willingness to take on a loss versus the return that you’re willing to gain? to earn 50% in growth,
how much are you willing to lose for that? And I’m always surprised that a lot of people will come back and say,
“You know what? I can do a 30% loss.
I can manage a 40% loss because I experienced it before. I just let them know like “Look,
you have a finite timeframe right now, you have a 5 to 10 year timeframe to invest this money and grow it as much as
possible and any loss that you take will be significant. And all it will do is push
out your time of when you can actually retire because you just simply,
you don’t have enough time in your life to recover from any lost.
So even though you might have went through that type of loss before because
of what happened in 2008 and 2009, that doesn’t mean that you can incur
that same type of lost now, especially now that you’re much closer
to retirement”. Now my 30 and 40 year olds,
yes you can, you can recover. There’s plenty of time. I’m going to do a whole other video
about that, but my 50 year olds and older,
no you can’t. So I want to talk today about taking
control of that money and protecting your money against any future losses.
There’s basically all types of financial accounts out there that can
give guarantees and they also can still give you opportunity to grow
and earn some interest. So there’s three ways that you can try
to find this money to protect and grow and take control.
The first is if you are still working for your employer and you have a
workplace retirement account, let’s say you have a 401k, some companies allow you to do what’s
called an in-service distribution. Meaning while you’re still working,
the 401k company and your employer will allow you to access a portion of that
401k money, take it out from that 401k account and
reinvest it into another account that you control and manage.
And the accounts that I would have you invest in are the ones that give
you those safety and guarantees that I was talking about. So just call, all you do is simply
call your HR manager, call the HR department and say, “Hey, can I take an in-service distribution?”
And they will be able to let you know- it’s either Yes or No.
Most companies allow it at age 50 or older. Some companies might allow you to do it if you are 55 or older. And some
companies don’t allow you to do it. So it’s literally just making that phone
call and just finding out, is this an option for me?
Now the second option that you can look into are investing those old 401k monies that you have. So for example,
let’s say you had a 401k with the previous employer,
you don’t work there with them anymore and that money is still there.
You can actually take control of that money and reinvest it.
Number one, nobody’s probably even managing that
money for you. And number two,
because it’s an investment account, it’s just,
it’s really just riding the ups and downs of the stock market. And again, I’m talking about taking control of your money and locking in those gains that you’ve earned over the last 10 years
because if you’ve been invested in the market in the last 10 years,
you should have been earning money. If you haven’t,
that’s another conversation we should be having. But let’s lock in those gains and move
forward. Guarantee the money that you have now and then put it into another account that can still grow for you.
So you can call those companies. You should be receiving the statements
every quarter because you have money sitting there. Call them up and say,
‘Hey, send me some distribution forms.
I’m ready to manage this money on my own”. Now, the third option would be for those who save money at the bank. I meet with people all the time and I just find that a lot of people, especially some of my more older clients, my senior clients, they keep thousands and thousands of dollars in a bank account. Maybe it’s a savings account or money
market or even a CD. And the reason why they do is they just
tell me “Chantay, hey, I don’t want to invest my money in the stock market. I don’t want to take any losses.
I just want the safety and guarantees that the bank offers”. And my response is, that’s all and well.
I totally get it. However, in the bank you could probably earn no more than two percent interest, if that. I’m just going to tell you now. You will never grow money by having your money sit in a bank account. It’ll never happen. Now is it safe? Absolutely. However, there are investment accounts that can
give you the same safety and guarantees of the bank, but also give you a better, better opportunity to grow that money and offer you two, three, four times the amount of interest that you can earn in the bank. But also to put you in a position to where you can grow it a lot more significantly. So that’s all I wanted to share for you
all. If you have any questions, do connect with me. You’ll have a link. I’m going to post it to connect with me and have… Let’s have a 30 minute phone call. You know, I tell people it doesn’t hurt to just have a conversation. I don’t charge people for that phone call. I don’t even know if these things are options for you. It doesn’t hurt to say, “Hey, what can I do? You know,
where can I save money? How can I guarantee money? If I can do an in-service distribution.
What’s next?” I want to talk to you about strategies
and the reason why I don’t share them on the video just because they don’t make sense for everyone and I don’t give group advice. Everybody’s situation is totally different.
So having that one on one phone call is important because I want to make sure that I recommend something to you that works exactly for you. So everyone connect with me. Comment. Please share this video. Subscribe to my channel. Send to your friends and family so they can subscribe to my newsletters and look
out for my next video.