Rich Habits Podcast

Q&A: Cashing Out The College Fund, Discretionary 401(k) Match, & Shopping Financial Advisors

Oct 30, 2025
This Q&A session dives into the intricacies of managing educational savings and retirement funds. Discover strategies for cashing out a 529 plan when college plans change. Learn the importance of researching company stock before accepting a 401(k) match. Tips on transitioning from high-fee financial advisors to fiduciaries are explored. Finally, hear advice on investing wisely at a young age, including the benefits of low-cost ETFs and understanding the Roth 401(k) advantages.
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ADVICE

Smart 529 Withdrawal Strategy

  • Take out only 529 contributions tax- and penalty-free and invest them in the market for your son's Roth or brokerage account.
  • Leave gains in the 529 or change the beneficiary to avoid taxes and penalties on growth.
ADVICE

Evaluate Company-Stock Matches Carefully

  • If the employer match requires buying company stock, research the company's past and future prospects before contributing.
  • If the 401(k) offers no autonomy and poor funds, prioritize Roth IRA contributions and taxable accounts instead.
ADVICE

How To Replace A Financial Advisor

  • Interview multiple advisors and ask for fee structures, past client performance, and portfolio details before switching.
  • Move assets via the new advisor's transfer paperwork (DocuSign) to avoid staying with poor service.
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