You’ve changed companies a few times … and have a few 401ks left behind. When you change companies, deciding what to do with your old 401k probably isn’t your top priority. That’s understandable, it’s not critically urgent to do something with it right away; but once you get settled, it’s probably in your best interest to consolidate all of your retirement investments in one place.
If you have a trusted financial advisor, it might make sense to consolidate those old 401ks together with them.
Rolling over your 401k(s) to an IRA with your advisor could benefit you for the following reasons:
Simplicity
Having all of your investments in one place can make the process of investing for retirement simpler. It takes extra time to keep track of multiple accounts and to make sure that they are all working together.
Access to a wider range of investment options
Your 401k is usually limited to a narrow range of investments, your advisor probably has access to a much wider range of investments that make it easier to tailor a portfolio to your specific needs. When you have investments in multiple different places, it makes it more difficult to make sure all of your accounts are working together in harmony.
Helps with financial planning
When you consolidate all of your investments with one advisor, it makes the financial planning process easier. Your advisor will have access to all of your accounts and can manage them and provide you with more accurate advice.
Easier to manage retirement income
401ks are often not the best vehicle to generate retirement income. Many 401k providers recommend (or require you to) rollover your dollars into an IRA when you’re ready to use the funds to create an income stream for you. Your advisor is likely to be well suited to help you design a plan to generate an income stream from your retirement accounts.
May result in lower fees
The fees inside of 401ks are often non-transparent. If your advisor is a fee-only fiduciary, your fees should be more transparent by consolidating your investments with your advisor. Your overall fees may also be lower by consolidating your accounts depending on the size of your accounts and the differences in investment expenses.
Want to learn more?
We are fee-only fiduciaries that can help you consolidate all of your investments, help you design a plan and help you manage your investments all along the way.
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