Joshua Markowski is an investment advisor for Markowski Investments, an independent Registered Investment Advisory based in Tampa, FL. Joshua is one of the youngest registered Investment Advisors in history and is also dually registered as a Securities Principal and an Options Principal. He is currently obtaining his Chartered Financial Consultant designation through the American College of Finance.
Markowski Investments believes that if they serve their clients well, their own achievements will follow. Joshua and his team's continued success depends on their ability to maintain the highest level of ethical standards. Joshua and the team at Markowski Investments provide their clients with the highest level of service and technical expertise in the management and preservation of wealth. They are always anticipating the changing needs of their clients and developing new and innovative ways to meet those needs.
Unlike other firms, Joshua's business is strictly client-based; they cease to exist without them. They go to great lengths to maintain their performance and relationships. The pursuit of excellence in and out of the workplace is an obligation for all at Markowski Investments. They place their clients’ interests first, act with integrity and honesty, and strive for excellence in every facet of their practice.
The American College of Financial Services
Assets Under Management:
Not knowing your income or living expenses in this scenario can make for a more complex situation but I think it would be wise to hold off on contributions to the 401k for now and build up your cash cushion over the next few months. I’m not sure if your wife brings in any income but either way it’s generally best to be on the safer side and sit on more cash than you may need during this time than to have a less than sufficient cushion and have to dip into your retirement savings.
Remember once you're working for a new employer you can contribute to their 401k or similar program and invest your larger than needed cash cushion into other vehicles such as a deferred annuity, additional life insurance, brokerage account, etc.
Congratulations on your commitment to planning ahead for your future. Because you are starting out with modest resources(couple thousand dollars) it may be wise to stick with very low cost ETF's (SPDR or Vanguard). Both SPDR and Vanguard have several different options of ETF's to choose from. They will give you the diversification you're looking for and generally cost much less than a traditional mutual fund or target date fund. Be sure to check the annual expense ratio of whatever fund you choose.
Depending on certain circumstances, yes you can. When you roll over your employer’s Roth 401k to your own Roth IRA the tax treatment is the same(i.e. Qualified distributions from your account with be received tax-free). There are two rules that you must satisfy to receive distributions tax-free from your Roth IRA. The first is to satisfy the age requirement. Similar to Traditional IRA’s the age requirement for a Roth IRA is 59 and 1/2. The second rule is related to how long you have had the Roth IRA account open. You need to have had the account open for at least five years before you can receive funds that include the earnings portion of your account tax-free. So if you satisfy both the age and five year requirement you should be able to withdraw funds tax-free with no issue. However another great feature of the Roth IRA is the ability to receive the portion of your account that represents your after-tax contributions tax-free without having to satisfy the above two rules.
You may want to contact the former employer or the company that the account is being held with to be sure no further tax consequences apply to your specific circumstances.
On the surface it may seem like easy money to take advantage of but when considering the amount of time and energy this will take I don't think it would be worth it for you.
Your account size is large enough to the point where you should be focused on the firm and professionals who are handling your retirement money. You can save far more than $1,200 over the long run if you select a broker who's account fees, transaction costs, and level of client service are in line with your unique investment goals. After 10 or 20 years you’ll be very happy that you carefully chose a broker that has the right balance of fees and level of service that suits you best.