If You Want To Be Rich, We Can Help You! | Don’t Wait To Open A Rollover 401(K)

When you leave an employer where you invested in a 401(K) retirement account, you have the option to leave it with your old employer’s fund manager. You also have the option to do what’s known as a 401(K) rollover account, where you move the retirement account to another brokerage house of your choosing. Moving your retirement investments this way is called a rollover because you never actually take possession of the money, you just have your new broker “roll over” the account into their company.

It’s always a good idea to roll over your 401(K). The reason is that you are more likely to lose sight of what’s happening with your account if it’s sitting at another fund company that you don’t actively pay attention to. In addition, you remain limited in your investments to those your prior employer allowed, instead of investing in a wider variety of vehicles in a new self-directed IRA account. With a self-directed 401(K) rollover, you’ll be able to purchase individual stocks, ETFs, bonds, mutual funds, and a host of other choices that can make you more money on your retirement investments than you could probably have made at your employer’s fund company.

It’s simple to roll over your account. Choose a new brokerage, preferably one with low trading fees and no annual maintenance fees, and contact them about opening a rollover 401(K) account. They will forward you the paperwork, and handle the details of getting your funds moved. Once the account funds are there, you’re ready to invest as you see fit. A 401(K) rollover is always a good idea, even if you are not used to investing on your own. You will still have a wide selection of balanced and index funds to invest in, but you can also invest in safer investments like bonds, CDs and treasury notes, which are usually not available under typical employer plans.

This transfer into a new rollover 401(K) can be done at any time after you leave your employment. Don’t wait to move your retirement account into an account of your own.

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