Your Old 401(k): to Rollover, or Not to Rollover

Stay Wealthy Retirement Podcast

Taylor Schulte, CFP®

Financialplanning, Retirement, Money, Taxplanning, Stocks, Wealth, Business, Investing, Retirementplanning

2.4 • 606 Ratings

🗓️ 20 November 2018

⏱️ 27 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Did you know? The average cost per year for a 401(k) participant is 2.2% of their account balance, according to SmartAsset.

This number is rapidly declining, but even if you cut it in half, it would still be concerning.

When you leave a company, you have three options for dealing with your 401(k):

Leave it at your previous employer
Transfer it to your new employer
Roll it over to an IRA at a trusted custodian

And, given how much you might be paying in fees, I don't recommend neglecting this part of your financial plan.

In today's podcast episode, we talk about each of these options and help you decide which is best.

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Thanks for Listening

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Find show notes and more information at http://www.staywealthysandiego.com/35

DISCLAIMER: This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. This podcast is not engaged in rendering legal, financial, or other professional services.

Transcript

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0:00.0	Do you know the total fees you're paying in your 401k?
0:03.0	One study found the average cost per year for a participant was 2.2% of their account balance.
0:13.0	Stay wealthy community. How are you? Thank you as always for tuning in.
0:17.0	I've got a great show for you today. It's a topic that comes up just about every week
0:22.2	for us, it seems like, every phone call, every meeting we have. This question comes up about 401ks
0:27.6	and more specifically what to do with these old 401ks. Really quick, a 401k is just a type of
0:35.1	retirement plan offered by your employer. And as you might know, you
0:39.0	usually have two options when contributing to a 401k. You've got the traditional option or
0:45.1	the Roth option. So when you sign up, you're faced with these two options. We did a whole
0:50.3	podcast episode on this and how to choose traditional or Roth when you're contributing to one
0:56.7	of these 401K. So if you haven't yet, go back and check that out. It's episode 24. You can just go to
1:02.2	Stay wealthy san diego.com slash 24 or pull it up in your podcast app and go find the episode. But
1:09.7	we dive into some of the really good details there and talk about what you might think
1:13.4	about when choosing traditional or Roth.
1:16.8	Sometimes employers will offer a match for your 401K contributions and sometimes they don't.
1:23.4	Either way, I just want to say that you should be taking advantage of this savings vehicle
1:27.7	if you aren't already. Sometimes we hear people say, oh, my employer doesn't offer a match,
1:32.5	so I don't contribute. The match is great. It's icing on the cake, but this is a really good
1:37.5	savings vehicle. So make sure you're taking advantage of the 401k offered by your employer,
1:43.3	even if they don't match.
1:51.6	So with that out of the way, we've all worked for a company that's offered a 401K that we've participated in.
1:53.1	Maybe we've worked for multiple companies that have offered 401Ks.
	...

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