Making a transition from one job to the next, or being between jobs can be one of the most eventful changes a person can go through. It can be a time of tremendous stress, excitement, or a combination of the two. While your retirement savings may not be the first thing to come to mind when making a professional transition, it is an opportunity to roll over your 401(k). It is important to ensure that your savings are not left behind with an earlier 401(k) provider, where the money may be sitting, collecting fees.
Don't Leave Your 401(k) With A Previous Employer.
Every time you make a transition between companies, it is an opportunity to roll your 401(k) from the previous plan provider to a new IRA, Solo 401(k), or your new employer's plan. While this seems like an obvious step to take, quite a few people never get around to rolling over their former 401(k)s.
When you leave your 401(k) with a previous employer, you are often paying higher fees than necessary, invested in the menu of mutual funds that they offer, and have little to no control over your money.
There is also a heavy administrative cost if you do this several times. It can be burdensome to keep track of several different 401(k) plans, each with a different provider, reporting standard, and fee schedule.
Take Advantage of Different Opportunities
It's frustrating to have investment opportunities come across your desk, and not be able to take advantage of them. Whether it's because you are not liquid at the moment, lifestyle costs, or because you're saving for something else, missing an excellent investment is a frustrating experience.
When you leave your 401(k) plan with a former employer, you're limited to their selection of funds. You won't be able to diversify across real estate, lending, private companies, cryptocurrencies, and much more. Simply stated, your money won't be working as hard for you as it could be. The opportunity cost could be high.
Flexibility and Ease
A Self-Directed IRA or Solo 401(k) from Rocket Dollar can be a great place to consolidate 401(k)s from past employers, and take advantage of a world of investment opportunities.
The flexibility offered by a Rocket Dollar account will ensure that your money is working as hard as possible for you. You can diversify into any asset class you want, investing in what you know best, not just buying the funds offered by Wall Street providers.
Consolidate and Save
When you house your old 401(k) plans inside of a Rocket Dollar account, you'll never wonder how much you're paying in fees. Our simple pricing structure ensures that you'll know exactly how much you're paying for your retirement account.
With unlimited investments, rollovers, and transfers included in your flat monthly fee, you are free to make investments without worrying about transfer fees, custodian fees, or per-asset fees.
If you're interested in learning more about our accounts, how to find old 401(k) accounts or the types of investments you can make with a Rocket Dollar Self-Directed account, please reach out to our team by calling us at 855-762-5383 or send us an email to email@example.com.
Affected by Covid-19? See additional information regarding retirement accounts:
- The Secure Act: What it Means for Your Retirement Account
- How does the CARES Act/Coronavirus Stimulus Bill affect my Self-Directed Solo 401(k) and Corporate 401k?
- What are the different provisions of the CARES Act/Coronavirus response bill that I need to know?
- How does the CARES Act/Coronavirus Stimulus Bill affect my Self-Directed IRA?
Additionally, our friends at Money Crashers have put together this helpful guide on choosing the best investments for your 401(k)!
Learn more in The Rocket Dollar Guide to Self-Directed Retirement Plans