Have you ever closed your refrigerator door, indifferent to the leftover lasagna and other old food languishing there for days?
Your inaction has a consequence: the food will probably rot.
When you don’t roll over your 401ks into an Individual Retirement Account (IRA), your money could begin to rot, too, especially as insidiously small fees compound year after year after year.
6 Reasons to Roll Over Your 401k to an IRA
It may seem inconvenient to round up all of your 401ks and roll them over to an IRA. But consider how much more inconvenient it would be if you ended up with too little money to sustain your lifestyle post-career.
Here are six benefits of rolling over your 401ks to an IRA today.
(1) Reduce hidden fees and diversify to your heart’s content.
Most employer plans involve mutual funds that contain insidiously small fees. According to 2010 Department of Labor data, every 1% paid in annual fees reduces your future retirement savings by 28%!
With an IRA, you can eliminate the mutual fund middlemen while opening yourself up to even more investment options above and beyond mutual funds.
(2) Get tailored input from a financial advisor.
Your employer may provide financial information and advice, but chances are, it’s not tailored to your financial needs. With an IRA, you’re free to work with a financial advisor who can make sure you’re on track to meet your “number”.
(3) Save thousands of dollars during the transfer process.
If you roll over your 401k to an IRA, you’ll pay no extra taxes.
(4) Reduce the chances of IRS penalties.
The IRS requires you to withdraw from each of your 401ks by the time you reach 70.5 years of age. With an IRA, you have only one account to worry about, thus preventing you from getting penalized for forgetting an account.
(5) Exert complete control over your own money.
No more playing phone tag with your old company’s human resources leader or plan administrator.
(6) Save time and frustration sifting through multiple old accounts.
The IRS has written so many 401k-related rules that you’re bound to miss one or two. By rolling over your 401(k)s into one IRA account, you reduce the chances of violating any tax rules – which means you get to keep more of your money!
To learn more, read Ric Edelman’s book The Truth About Retirement Plans and IRAs.
Roll Over Your 401ks to ValueAligned® Partners
As a Monmouth County wealth manager and financial advisor, I’ve helped investors in Middletown, New Jersey; Red Bank, New Jersey; and throughout the U.S. take control of their retirement savings simply by rolling over their 401ks into an IRA.
In just a ten-minute phone call, I can have you on the road to retiring earlier and more comfortably. Call me today at 732-800-2375!
If you would like me to contact you, please fill out the form below and I will be in touch shortly.
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