Expert Guidance

Working with an experienced retirement planner can help you avoid some of the pitfalls of making inappropriate withdrawal decisions. It can also make you more confident about making the whole series of choices that are part of retiring and withdrawing from your 401(k) plan.

Through your employer, you may have access to someone who knows the ins and outs of your plan, and how other employees with similar situations have handled the issues you are facing. And, if you already have a good working relationship with one or more investment professionals, ask them if they are qualified to guide you on retirement decisions or if they could recommend a colleague with that experience. Using an investment professional with whom you are comfortable working can make your life simpler.

One area in which you may need help is in looking at the big picture. Rather than assuming you will—or should—withdraw all of your 401(k) assets before you die, an adviser should consider your retirement savings in the context of your estate plan. The larger your account balance and the more other assets you have, the more important a comprehensive plan becomes.

You’ll have to provide your adviser with a copy of your 401(k) plan document. Its terms have a direct impact on the decisions you can make, and on what will happen to your assets at your death.

When you’re choosing an adviser, be sure to ask how he or she is paid, and how much you should expect to pay each year. Some advisers charge a flat fee determined by the assets in your account. Others may charge a commission for each transaction. Be sure you read and understand the adviser’s fee structure before you hire him or her.

Also, ask about the adviser’s background. If an adviser has a credential, ask what it means and what’s required to earn it. If advisers are brokers or investment advisers, you should check their background.