We strongly believe that participants build the most wealth and have the greatest returns over time by coming up with a strategy and investment risk profile that they can maintain in both up and down capital markets. All things being equal, we believe it is easier to oversee an investment strategy when all your assets are in one place.
Therefore, many participants choose to roll over their existing 401(k) balances into one retirement account.
However, when you consider rolling over assets into another retirement account it is important to take into consideration that all things may not be equal.
We believe these important factors need to be considered:
- Participant’s Financial Sophistication: What is your financial sophistication? Are you able to navigate a complex world of finance successfully?
- Ability to Select Investments: Does your brokerage account offer the best mutual fund investments, which combine low fees and good performance?
- Cost of Investment Alternatives at Other Providers: What do these same services cost you elsewhere? Do you need all of these services? Could you put the assets in another option where you have services that you use more?
- Recordkeeping and Administrative Costs: Full-service retirement plans can be expensive to maintain. Is your plan efficient?
- Access to a Financial Advisor: Is there a resource to tap into to help navigate this process?
- Commission and Fee Structure of Alternative Providers: What does it cost to get the comparable services elsewhere?
- Investment Monitoring and Oversight: Is there a constant process of monitoring of the investment selection to make sure future performance
If you have any questions how to roll over your retirement assets into a new retirement account (or even if you should!), don’t hesitate to reach out to see if we can help. Also, check out our video on this topic.