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My husband is .3 and plans to work in a second career for…

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My husband is 69.3 and...
My husband is 69.3 and plans to work in a second career for another 2.5 years. I am 51.1 and have no real plans to retire. My husband has, an IRA, a 401k, and a non qualified plan totally approximately $360k. The goal for this money is to move it to a very safe investment option with the lowest fees/penalties, for my and our adult sons future. Also, my husband wants to make sure this money is not depleted in case of a future illness.
We are looking for advice and options.
Submitted: 7 months ago.Category: Finance
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12/14/2017
Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Finance
Satisfied Customers: 2,638
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
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Hello my name is ***** ***** I will be able to assist you today.

Generally speaking your husband would want to deplete his non qualified funds while allowing his tax deferred accounts grow.

Your husband is also able to name beneficiaries to his IRA, 401K and other investment accounts. In some states the assets pass automatically to the spouse.

___

Accounts that have a designated beneficiary automatically pass to the beneficiary of record without passing through probate. You would be able to withdraw funds from the qualified accounts without penalty if the qualified accounts are correctly distributed to an inherited IRA.

___

As far as the safest investment option with the lowest possible fee... There are more risks then just investment risk. There is inflation risk, health care cost and government regulation.

However, US savings bonds and Treasury notes are backed by the full faith of the US government and are typically viewed as safe along with low fees.

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Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

I am happy to answer any follow up questions you may have.

Thank you!

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Customer reply replied 7 months ago
What is the best way to deplete the non qualified plan? Can all these be rolled into bonds etc?
Additional info, our house is paid for, we are building another house that will be paid off prior to his retirement. The accounts will
Not be used for his retirement funding. He has 2 pensions and the maximum SSA benefit. We have no debt except a small car at 0% interest and 60k cash on hand after paying cash for our new house lot.
Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

Non qualified essentially means not qualified to be tax deferred.

Non qualified funds are used for daily living expenses and are generally in your checking or savings account.

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Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

If the 401K and IRA will not be used for his retirement funding then he should leave the funds in the account to allow the funds to grow tax deferred.

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Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

If your daily living expenses can be met with his social security and pension funds then you could also save his non qualified money and wouldn't need to spend down the assets.

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Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

Both the assets that are qualified and non qualified should be able have a named beneficiary on the account.

If the goal is to invest to need the funds in a time period of greater than five years, then you will want to create a portfolio that at the very least keeps up with the rate of inflation.

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Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 7 months ago

If you would like for me to expand on my answer above or have additional questions please let me know!

At the conclusion of our conversation please take a moment to rate and accept my answer by clicking on three stars or more.

Thank you!

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