After 35-plus years helping successful pre-retirees and retirees plan for a financially secure retirement, one thing is clear: you need a plan for your money that is in motion.
If you’re between the ages of 50 and 65 and within 10 years of retirement, now is the time to understand and leverage the power of “money in motion.” Whether you’re switching jobs, rolling over a 401(k), inheriting assets, or simply shifting your investment strategy as you approach retirement, money in motion can either be a steppingstone to security—or a source of stress.
What Is Money in Motion?
Money in motion refers to any time your assets are in transition. Examples include:
- Rolling over a 401(k) or retirement account
- Inheriting money
- Selling a business
- Receiving a divorce settlement
- Selling real estate
- Moving funds from a savings account to an investment portfolio
Financial Transition
When there is money in motion, it’s a period of financial transition. During this transition, many people make less-than-ideal financial decisions.
Too often, I’ve seen individuals make knee-jerk choices because they lack a comprehensive plan. The good news? You don’t have to be one of them.
Why Money in Motion Matters—Especially Near Retirement
When your money is in motion, so are your options—and your risks. What you do during these transitions 
can either strengthen or weaken your financial plan.
At this stage in life, you can’t afford to “wing it.” Every financial decision should move you closer to your goal of a financially secure retirement.
Money in motion opens up opportunities such as:
- Consolidating accounts
- Reducing fees
- Improving asset allocation
- Creating tax efficiencies
- Securing guaranteed income
But to take advantage of them, you need a solid plan and proper guidance.
Common Money in Motion Situations
If you’ve ever asked, “What should I do with this money?”, you’re likely experiencing money in motion. Let’s look at some of the most common scenarios pre-retirees and retirees face:
- Changing Jobs or Retiring
If you have an old 401(k) or pension plan, you must decide whether to roll it over, leave it as is, or cash it out. Each option has pros and cons—and tax implications. A poor decision here can lead to penalties or lost growth potential.
- Receiving an Inheritance
Sudden money can create sudden overwhelm. Without a strategy, many people spend too quickly, invest chaotically, or fail to consider the tax consequences. A well-coordinated estate and investment plan can help you maximize the benefits of this financial gift.
- Selling a Home or Downsizing
Whether you’re moving to a smaller space or relocating altogether, the cash you receive from a home sale is money in motion. And for many, it is their most significant money-in-motion event in their life. It can be an opportunity to reinvest, pay off debt, or generate income—but only if it’s part of a bigger financial plan.
- Dividing Assets During Divorce
Divorce creates one of the most significant financial transitions in life. For some, they are now responsible for generating income, managing their assets, and preparing for retirement independently. This is a time when money must be handled with clarity and care.
- Taking Required Minimum Distributions (RMDs)
Once you reach the magical age (currently 72 or 73, depending on when you were born), the IRS requires you to begin taking minimum distributions from your retirement accounts. How and when you take these distributions, and what you do with them, are critical to creating a financially secure future.
Common Mistakes
Over the years, I’ve seen people make expensive mistakes during financial transitions. Here are a few of the most common:
- Cashing out retirement accounts too early, triggering unnecessary taxes and penalties
- Leaving old 401(k)s behind with employers, losing track of them, or incurring high fees
- Failing to update beneficiaries after a divorce or death
- Making emotional investment decisions without a coordinated strategy
- Ignoring tax consequences that could have been mitigated with the right plan
Each of these can be avoided with the right plan.
The 3 Part Plan
To protect and maximize your money in motion, I use a three-part framework with my clients:
-
Get Clarity
- What are your short- and long-term financial goals?
- When do you need income? Now,
and in the future? - What is your risk tolerance?
- How will this transition impact your taxes, estate plan, and retirement strategy?
Clarity is power. Before you move a dollar, know the answers to:
-
Create a Strategic Plan
- A spending plan
- Tax optimization strategies
- Investment allocation
- Income planning (including Social Security and other guaranteed income)
- Estate and legacy goals
This is where the real magic happens. Your plan should integrate:
When done right, you’ll know what you can afford to spend, what you need to save, and how to avoid the fear of running out of money.
-
Execute with Confidence
Execution is everything. I’ve seen clients delay decisions and lose opportunities because they felt overwhelmed. When you have the right plan, you can act with clarity and confidence.
That’s how you build a secure retirement and a life you love.
Key Strategies to Make the Most of Your Money
Whether you’re rolling over a retirement plan or handling a financial windfall, here are proven strategies to protect and grow your wealth:
Consolidate Retirement Accounts
Having multiple IRAs and 401(k)s scattered across former employers increases complexity and costs. Consolidation makes it easier to track your money, manage risk, and control your investment strategy.
Consider a Roth Conversion
If you’re in a lower tax bracket due to retirement or job transition, converting some of your pre-tax IRA to a Roth IRA may save you taxes over time, especially before Required Minimum Distributions (RMDs) kick in.
Create Guaranteed Income
-
You can convert some of your assets into a guaranteed lifetime income stream. This is especially helpful if you’re worried about outliving your savings or replacing a lost paycheck.
Revisit Your Estate Plan
Transitions often require updates to your estate documents and beneficiary designations. This ensures your money ends up where you want it to go, reduces taxes, and ideally eliminates the need for probate.
Don’t DIY Major Moves
If your money is in motion, it’s time to consult a financial planner. The decisions you make now will determine how secure your financial future will be.
Case Study: Paul and Sally
Paul and Sally, both in their early 60s, came to me after Paul left his corporate job. They had multiple 401(k) plans, IRAs, and a brokerage account, but no coordinated financial plan. They weren’t sure if they had enough to retire.
After creating a plan, we consolidated their accounts, rolled over Paul’s 401(k) account, allocated a portion of their portfolio to guaranteed income, and developed a tax-optimized withdrawal strategy.
Today, they spend less time worrying about their money and more time hiking, traveling, and spending time with their grandchildren. That’s the power of handling money the right way.
Conclusion – “Money in Motion and Your Financial Future”
Money in motion is a pivotal time in your financial life. It’s a moment of opportunity and risk.
Handled wisely, it can help you create the retirement you’ve dreamed of. Handled poorly, it can leave you exposed and your future uncertain.
If you want peace of mind, a reliable income, and the confidence to spend more time doing what you love, don’t leave your money in motion unplanned.
Get the right help. Build the right strategy. Take action.
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Disclosure
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This information is for educational purposes only. It is not intended to replace the advice of any advisor or specialist, nor to provide investment, financial, tax, retirement, planning, or healthcare advice.
Always consult with a qualified professional before making any financial decisions or changes.
