401 K Roll Over
In today’s workplace, the average professional may have to change jobs six to ten times during their career. Although they may have intended to work for each of those companies until retirement age, industry restructuring and business cycles can cause the loss of a job. As a part of any executive’s benefit package, it usually includes a 401k-retirement plan. As these cannot not be touched until a certain age, when leaving an old job for a new one, can make an orphan out of the retirement plan, and it just sits there in limbo, and the owner can no longer contribute funds into the account.
After twenty years or so of job-hopping, you may have three or four of these accounts hanging out there doing nothing. This is a huge mistake financially, as you have less control over them and really cannot consult with anyone about changes, etc. Take the initiative to once you get set up at your new company, and have a new financial plan in place. Consult with your current corporate financial planner on the best way to consolidate all of your 401k’s and roll them over in to your current account.
This will probably require quite a bit of work on your part, and several documents will need to be filled out and processed. Ask each holder of your 401k how the transfer will take place. Generally speaking, sending a regular company check or bank wire transfer can accomplish this. Be forewarned as most wire transfers have heavy fees attached to them and they may be passed on to you. Do this in the most timely, but economical way possible, financial institutions charge all sorts of convenience fees, so read over every document you receive carefully, and be sure that you are not agreeing to any of these fees by signing the documents.
Once you get everything transferred over and locked in, then go over your options with your assigned planner to see how you can optimize your portfolio, and make the most income possible. Getting every penny you can out of your retirement is more important than ever, due to how shaky the economy can become in an instant. After all we want to enjoy our golden years and not have to stand by the door in a blue vest, and welcome strangers all day to supplement our retirement income. In review, do not linger on these financial instruments for any longer than necessary, as time passes it can become more difficult and costly to you during the rollover process.
