🚫 Why It’s Not Usually the Best Idea to Leave an Old 401(k) Open 🚫
Switching jobs? It's easy to forget about that old 401(k), but leaving it behind might not be the best move. Here’s why:
Fees and Expenses: Old 401(k) plans can come with high fees that eat away at your savings. Without regular oversight, these costs can go unnoticed and unchecked.
Limited Investment Options: Sticking with your old plan means you’re limited to the investment choices it offers. Rolling over your 401(k) can provide you with more diverse and potentially better-performing options.
Difficult to Manage: Juggling multiple retirement accounts can be confusing and cumbersome. Consolidating your accounts simplifies management and helps you stay on top of your retirement strategy.
Lost Benefits: Some plans offer perks or benefits that might not apply once you leave your employer. Ensuring your funds are in an active, up-to-date plan can maximize the benefits available to you.
Risk of Neglect: Out of sight, out of mind. It's easy to forget about an old 401(k), and that neglect can lead to missed opportunities for growth or adjustments in your investment strategy.
So, what should you do? Rolling over your old 401(k) into a new employer’s plan or an IRA can give you better control, more investment options, and potentially lower fees. Additionally, while not a great option for many people, you can also cash it out.
Need help with your 401(k) rollover? Book a meeting with me today and let’s ensure your retirement savings are working hard for you.
📅 Click the link to schedule a meeting: https://bit.ly/4eD8E1T
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