Rollover………..Good IRA!!

There are many reasons why you should rollover your old 401k’s and other past employer retirement plans into an IRA when you have the chance. Here are just a few.

1. They may be charging you a high administration fee for not being an active employee anymore. These fees can add up to a lot of money over time.

2. Liquidity risk, the old employer could change plans, merge, or be bought out and during these times they may go to a “blackout” period and even if you needed the money your could not have it.

3. Small selection of investments. They may only offer 10-20 different investments. The IRA market has 1000’s.

4. Very little if not zero service, planning, and advice. Nearly all investments charge some sort of internal fee. Why not get the professional help you are paying for?

5. Lumps sums of cash are hard to accumulate. If you cash in your 401k plan everytime you change jobs you start over each time. Most investors accumulate wealth slowly over time. Roll it over, don’t cash it in!

Retirement planning is no accident. Do it on purpose. Make small dents in things like performance and fees. These small dents can finally break through, so one day you might have enough to live off of so you don’t have to work for a living.

Please make sure you follow the rules and guidelines for this strategy. It is easy to do but can get messy if the IRS gets involved if you do it wrong. Contact me if you would like help doing it right the first time.