Expert: Paul Henneman - 5/18/2007

Question
I have a pension lump sum payout of $80,000 coming in another month.  As part of a bigger financial plan, I want to take that money and purchase Becton Dickinson Stock (the entire amount).  I will be 60 in five years.  At that time I will make withdrawals.  I want to set up an IRA account with the stock and begin with withdrawals at age 60.  How can I do this?

Answer
John,
  Thank you for your question! The first step is to set up the IRA account. This can be done on just about any online trading service, some of the ones that I like and have low fees are www.FOLIOfn.com, www.Scottrade.com, and www.Etrade.com   The process is usually easy, just go onto their website, look for the link to open a new account, and there is usually an option to set up the account as an IRA. If you have any questions, these sites usually have good customer service.
  Once the IRA account is set up, you have to fund it. THis can be done by mailing in a check, or doing a wire transfer. A few days later the funds will appear in your IRA account as cash, and ready to be traded. Each site is a bit different exactly how you do this, but there will be a 'trade' type link, enter the ticker and the amount you wish to buy, and thats it!
   When it is time to withdraw, you can take 'distributions' out of the account at any time by logging in and withdrawing. Often even checks or an ATM card can be issued to you to make withdrawl even easier.
   I hope that this helps. If you have any trouble, or additional questions, please do not hesitate to follow up with me.

Best Regards,
Paul Henneman
President
ValuEngine Inc
www.ValuEngine.com