Raising Money$mart Kids: Taking Your Retirement Funds With You When You Leave a Job

Welcome to Raising Money$mart Kids!

What do YOUR kids know about the value of a buck? If you're like most families, finances aren't often discussed. Some parents feel that talking about money makes their kids feel like they're poor. Others may not know where or when to start to help their kids learn about budgeting or business or banking.

Here at Raising Money$mart Kids, you will find articles on everything from setting up an allowance to running a lemonade stand to helping kids make better purchase decisions. You can ask questions get help from the community.

So, grab a cup of coffee and pull up a chair!

Thursday, November 11, 2010

Taking Your Retirement Funds With You When You Leave a Job

With the mobility of labor today, many employees work for a half dozen or more employers during their career. They may leave behind small chunks of money in each company's 401(k) plan. Rolling old 401(k) money into an IRA helps you keep control over your retirement money and can provide you with a better return.
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Leaving an Employer Means You Can Take Your Retirement Money with You

As an accountant and financial planner, I am often asked by clients for advice on what to do with their retirement funds if they change jobs or become self-employed. There are a few options, each with its own set of pros and cons.

When you leave an employer for another or for other opportunities, you can do one of two things with your built-up 401(k) plan funds. You can leave it parked where it is (and the employer must let you do so if you have more than $5,000 vested. Alternatively, you can roll it into an Individual Retirement Plan (IRA) that you control.
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Piggy Banks to Paychecks

“It doesn’t matter how old your children are or how difficult your financial situation is. It doesn’t matter where you start to teach your kids about money. It doesn’t matter what kind of allowance system you choose to set up with your kids. It only matters that you get started- right now, with the tools you have to work with and the knowledge you already have.”Piggy Banks to Paychecks tackles the subject of money head-on in an easy-to-understand, friendly format. If you are a parent,grandparent, teacher, or otherwise involved in helping kids learn financial basics, this book is for you. In its pages, you’ll find straightforward answers on saving, wise spending, investing, and donating. You will find help in setting up an allowance plan for kids and various methods of tracking savingsand evaluating purchases. You will learn the language of money and be able to set your children on the path to fiscal responsibility – the greatest gift you can give them.