Investment Strategies for Managing Your 401(k)
On: 28th June, 2016 // By: admin
Why Rolling Over Your 401(k) Can be One of Your Smartest Investment Strategies
When you change jobs, it’s a big transition. You may be getting used to your new role, adjusting to your supervisor and finding where you fit on the team. You may have even had to move across the country to pursue this next step in your career. While you may be busy prioritizing your new job responsibilities, don’t forget to spend some time on your investment strategies.
Many people move jobs without rolling over their 401(k). They believe that it’s simpler to leave it alone. Experts say, though, that it is a good move to go ahead and roll over your 401(k) as part of smart investment strategies. Here are a few reasons why:
Your investment options open up. While a typical 401(k) offers about 20 investment options, rolling over into an IRA gives you thousands of choices for investing. From stocks, bonds and mutual funds to REITs and alternative investments, you’ll have a wide array of options.
You gain more control. When you are working with your IRA, you can easily switch funds if you find that something isn’t working well for you. You may not have the same options with a 401(k). They are not nearly as agile as an IRA.
Transfer options. If you’re relatively young, wealth transfer may not be on your mind right now. If you’re nearing retirement, however, you may want the ability to name someone other than your spouse as your beneficiary. An IRA allows you to choose multiple beneficiaries, and even name a trust, while a 401(k) limits you to choosing your spouse as the beneficiary. If you decide to transfer your wealth to someone else, your spouse has to sign a waiver for you to do it.
You may still want to stay in your 401(k). Sometimes, it makes sense to leave your investment in a 401(k). For instance, you may pay higher fees for an IRA, depending on the types of investments you prefer.
Find out what’s in your best interest. Every situation is different, and while most people benefit from moving their investment into a rollover IRA, you should seek out the advice of a professional if you’re not sure. This will give you confidence in your decision and help you weigh the options with all of the pertinent information.
If you have questions about rolling over a 401(k) into an IRA, make an appointment with Aura Wealth Advisors. We can give you all of the information you need to make an informed decision about your 401(k), plus help you develop other investment strategies to provide for a secure future. Give us a call today!