Thinking Outside the Street Episode 3 – Caring for Orphan 401(k)’s


In This Episode:  Paul and Cliff discuss reasons why you might want to rollover your orphaned 401(k) to an IRA


  • More investment options.
  • Access to professional management of the IRA account.
  • The opportunity to invest with fewer mandatory holding period restrictions on your account.


  • Can’t borrow against an IRA but you can borrow against a 401(k) (if your plan allows it).
  • Access to 401(k) funds without penalty can be as early as age 55, but IRA you need to wait till 59 and 1/2.

Be Careful

  • Do a direct rollover and do not take constructive receipt of the funds.
  • Get a plan in place to wisely manage your IRA or hire a money manager to do it for you.

Volatility is back in the Markets

Wow! A 4% drop in the S&P500 in 4 days! Is this the beginning of the next big bear market?

Wait a minute! Let’s not start trying to predict what is going to happen. Don’t let emotion drive your investing decisions. No one knows what is likely to happen next. This pullback in the markets is part of normal ups and downs (albeit, it is a little volatile right now).

Also, let’s not play the game based on definitions set by others. Whether this is the beginning of a bear or part of a normal Bull market pattern shouldn’t matter to you. You need to control the risk in your portfolio based on how much pain you can tolerate in the form of lost value. The only way to do that is to have a carefully planned exit strategy that will move you (at least partly) to the sidelines when the markets drop too much.

In the realm of technical indicators, the S&P500 did break below its 50 day moving average yesterday, and many strategists use that as a sign to lower their allocations to equities in case it drops further. But, be sure you have a re-entry strategy as well. Because, if you step to the sidelines, you might get caught sitting there way too long if you don’t know when to get back into the game.

Episode 2 – Interview With Jason Wilder about 2014 NAAIM Conference



In This Episode:

  • Incoming President of the National Association of Active Investment Managers (NAAIM), Jason Wilder talks about the value offered by a conference such as the Uncommon Knowledge conference happening in Fort Lauderdale, Florida on May 5 – 7.
  • Paul and Jason talk about the networking opportunities built in the conference schedule.
  • Jason discusses the purpose of the NAAIM organization.
  • Jason reveals the benefits of having a room full of vendors that are eager to help advisors run their businesses well.

NAAIM website

Conference Information

Paul Schatz on CNBC

Our friend, Paul Schatz from Heritage Capital on CNBC this morning.