Ep. 417: Should I Roll Over My Older 401(k)s?

We want to answer your questions about money. Email us and you may hear yours on the air: askpete@petetheplanner.com

This week on the Pete the Planner Show, Pete hits the beep AGAIN, also Damian chooses the order for the show. WHAAAAT?! 🤯😱

No time to listen?  Here’s a preview of what happened and when:

Show Notes:

MAILBAG QUESTION 1: WHAT IS A SWEEP MORTGAGE? [4:05]

  • “What do you and Damian think about sweeping your mortgage with a HELOC? We have about 50% equity in our home valued at about $420,000. I’m guessing you’ll say paying off debt with debt is always a bad idea, but is there a strategy that, to you all, makes any sense?

    • DAMIAN: “Sweeping the mortgage” is a convoluted method of leveraging your paycheck, a line of credit, and a HELOC to put big chunks of money toward the mortgage in order to eat away at the principal to lessen the amount of interest you pay on it overall.
    • PETE: Technically, this works. If you’re very disciplined, and nothing goes wrong in life, and you can find those type of vehicles that make it work. I believe that 3-5% of people could pull this off.
    • DAMIAN: The opportunities for failure seem to increase with the more steps in a process. I don’t see huge incentive to do it this way for 10 years.

 

MAILBAG QUESTION 2 HOW OFTEN TO MEET WITH YOUR FINANCIAL ADVISOR?: [14:45]

  • “My investment advisor has offered to meet with us every three months, and not just a phone call. He’s suggesting a 60-90 minute formal meeting. The whole reason we have an investment advisor is so we don’t have to think about our investments that much. Is there a compelling reason for us to chat with him that frequently?”

    • PETE: I gotta think, unless this person has a family CFO and tens of millions of dollars, this is overkill right?
    • DAMIAN: Yeah, you need as much as needed, but as little as possible. This seems pretty aggressive.

There’s more segments to check out in the full show! There might be something you can think about.  — click PLAY below.


— HEY! Before you go, give your personal finances a facelift. Peep our personal guidance platform: Hey Money.

 

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