I wouldn't call myself a control freak...let's just say that I just like to be in charge. There is no place in which this is more true than where my money is concerned. I want to know where my money is, how it is performing, and what my options are. That is why the minute I left my former employer and that former 401(k) Employer-Sponsored Retirement account became available to me, I rolled it over to an Individual Retirement Account (IRA).
401(k) Rollover: Take Charge, Not Play Dead
However, most people do not know to do this. If you are like most people, you still have a 401(k) or other type of employer-sponsored retirement plan that is just sitting there. If so, you need to read this!
IRA vs. 401K
I have the advantage of knowing these things because I have been in the industry. But if I weren't, I would be completely clueless. This is why I am sharing it with you now.
401k Rollover Advantages
Personal Investment Quiz
With regards to your money, and more specifically, your employer-sponsored retirement accounts, you don't have to be a control freak like me, but you should be able to answer the following questions:
- Do you know and understand what your options are?
- Do you know where your money is and how much you have?
- Do you know how it is performing?
- Do you know and understand what it is invested in?
- Do you know what the fees/expenses are (including the internal fees that you do not see deducted from your account)?
If you don't know the answers to these questions, I challenge you to seek them out. And if you have a 401(k) or other employer-sponsored retirement plan still sitting with a former employer, I encourage you to talk to a financial advisor to determine if rolling it over to an IRA is a good option for you.
As you can see, "rolling over" does not always mean "playing dead." When it comes to your 401k, "rolling over" signifies the exact oppositeâtaking control.