Financial Advisor Marketing Letter

I am 65 and have an IRA R/O account – what are my options in moving/closing this account?

I have an IRA R/O (approx $150,000) that was opened in 2007 from a 401k from my last employer. The company handling the IRA R/O sent me a letter that I have to find a new Financial Advisor for this account – or they will change it to a “custodial account” and I will be charged fees. I want to move this to another company (that will not charge fees) or close it and put the money in a Money Market account or something…. I really don’t know what my options are…. I just want to pay as little penalty and/or tax as possible. All advise appreciated.

What you are looking to do is a very simple IRA transfer. Some people call this a “rollover” (like first answer); but generally in the industry a rollover refers to when you leave your employer’s 401k plan and move your retirement money to an “outside” IRA. Since you’ve already done this, all you are looking to do now is transfer this IRA from one place to another. That is quite simple. You can walk into any place that handles IRAs and bring a copy of your most recent statement. They will have you fill out their IRA transfer form, which instructs the firm currently holding your IRA to move the account directly as an IRA-to-IRA transfer. The check is made payable to the new institution FBO (for benefit of) you. It is NOT made payable to you. This means no taxes at all….since you did not take any money out. You just moved your IRA. If you want no fees and just a “money market” type IRA you can get that at any bank. They offer money market IRAs and CD IRAs all day long. If you want the option to direct how this money is invested….stocks, mutual funds, etc. – then you will need a brokerage IRA.

Bottom line – as long as the money goes directly from the old IRA to the new IRA you will have no penalties/taxes. Wherever you go just tell them you need to “transfer your IRA” and they’ll know what you are looking to do.

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Financial Advisor Marketing Letter Once you”ve confirmed that the adviser has a good track record, it”s time to delve deeper into his or her personality. Financial Advisor Marketing Letter A good adviser will consider all aspects of your financial situation and design a customized plan to help you achieve your goals.