IMQ Application #1: Diversify Investments Ahead of Retirement

January 11, 2022 4:51 pm Published by Leave your thoughts

Do you have clients with a 401(k) that are within 5 years of retirement? They may be looking to diversify their assets, and IMQ can help you unlock these funds.

For example:

George is 56 years old and is 4 years away from retirement.  He has $625,000 in his 401k.  His wife, Peggy, is also 56 years old.  Both are starting to think about retirement, but cannot do so right now. George fears that the stock market will not continue going up and that another stock market correction will cause his 401k to lose significant value before he is able to retire and roll it over into a more diversified portfolio.

An In Marriage QDRO® allows George to take $400,000 (or more) from his 401k and roll it into an IRA in Peggy’s name.  With the proper guidance from a financial advisor, Peggy can diversify this $400,000 in various stable accounts which protect against a stock market correction.  Meanwhile, George keeps $225,000 in his 401k which allows for the chance of continued growth in the stock market during his last five years of employment, while also continuing to contribute for another few years before retirement.

Categorised in:

This post was written by Marcus Foote

Leave a Reply

Your email address will not be published. Required fields are marked *

What’s in it for You?

401(k) Plans, Corporate Pension Plans, Profit Sharing Plans and State-Deferred Compensation Plans

A tool previously associated with divorcing spouses works for married couples, allowing them unrestricted access to retirement benefits without penalty. Unrestricted, non-penalized access offers more effective estate planning and protection opportunities for those who serve married clients.


Have Questions?

Use the form to the right to get in touch with us via email and we will do our best to respond to you within 24 hours.