Why rollover your retirement accounts?

Scenario 1: James retired from the company where he had worked for the last 3 decades. He probably will move out of the state and no longer be in close contact with his company. What should he do with his 401k account?

Scenario 2: Laura left her company due to downsizing. Before she lands another corporate position, she wonders whether she ought to rollover her pension and 401k account with her prior employer considering the pension is invested only in company stock and earned less than 1%.

The most common reasons to rollover are:

  1. Better and direct control
  2. More investment options
  3. Personal service and advice

Once you have left your job, it’s probably more difficult to keep in touch with your ex-employer when you wish to change investments or re-designate your beneficiaries with your 401k account or pension plans.

A company’s 401K plan usually offers 10-12 mutual funds, sometimes with company stock as the only choice.

Although there usually is a designated 401k representative and toll-free help desk, that person probably don’t know you on a personal level.

Please be sure to speak to your financial professional to carefully consider the differences between your company retirement account and investment in an IRA.

If you decided to go forward with moving your accounts you would have conducted a search and interviewed some potential advisors and found an experienced and trustworthy one that you feel comfortable to work with, then a rollover is a no brainer. (1)

If I am the advisor, I would have an initial meeting with you – taking about 15 minutes to explain my process and planning philosophy. Then it is up to you to ask me any questions, share concerns and decide when to leave the meeting.

If you and I decide to work together, I will prepare a comprehensive customized financial plan for you and your family and use the plan to propose strategies and suggest investment portfolios. The investments are unlimited – multiples of 12 with diversified asset classes.

Most importantly, you will have yours truly to call upon for advice – what to do and what not to do. I will know you and your family’s finances intimately and you don’t have to be put on hold for 10 minutes and be transferred to 1 or more representatives to ask your questions.

One of the most important benefits of our relationship is that you have someone to talk to in difficult times. At some point the market will decline and you might want to cash out.

History has shown this to be the wrong move. It may be time to sell some stocks so that you can buy some bargains or maybe just wait. A calming conversation could give you a new perspective.

You can never turn the clock back. Make time to meet some advisors. Make time to rollover and plan better for your retirement (for your hard-earned money and life)!

I am here to help.

(1) Factors to consider when rolling over a retirement account include, but are not limited to, changes to availability of funds and withdrawals, fund expenses, and fees, etc.

 

IMPORTANT DISCLOSURESRegistered Principal, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA / SIPC . Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and ATO Capital are not affiliated. Neither Cambridge nor ATO offers tax advice.To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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Registered Principal, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and ATO Capital are not affiliated.
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