In For Repairs.

A few years ago, I took my Ford Fusion, in for service during the summer at the dealership while it was still under warranty. 

There was a problem with something electric and the result was keeping the radio and the air conditioning from working and the windows from rolling down. 

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While striking up a conversation with the Service Manager I got to asking him about his retirement outlook. He told me he had been putting away about $12,000 a year into his 401(k) for the past 20 years, which I replied, "So then, you should have about $240,000 or more in that, huh?"

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With a perplexed look he told me that he barely had $183,000 in it. 

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I replied, "you have a problem then, don't you!" He asked, "how could this be possible? I explained, "well, like many, your 401(k)'s are subject to poor performance, no guidance as to where to allocate your money, and high undisclosed fees." 

Then I dropped the bomb, "you realize you have to pay taxes on the entire 401(k) balance, whether you have earned interest or not."

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The story ends happily though, I was able to align him with a better path, tax-free and guaranteed not to lose money, unlike his 401(k). We showed him a side-by-side comparison of what he had vs what we could do for him and there was no doubt in his mind as to what the best path forward for him was. Onward and UPWARD- guaranteed!

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Interested in seeing the same side by side comparison? Give us just a few minutes, and at the very least you'll be well informed!