I Lost My Job Or I Changed Jobs – Should I Rollover My 401K?
Yes you should.
Why? Simply put, because as great as the 401K idea is, it can limit your choices significantly. You might not be able to get the best possible investments out there.
Think about it – if you worked for a reasonably large company, then while you were employed, you probably didn’t feel like you had much say in the investments that were offered to you and your fellow employees. Technically, the benefits director is supposed to take into account all employees opinions, but that doesn’t mean that a given opinion makes sense or that any change will happen.
Also, contrary to what many people think, your 401K isn’t free. It costs money to be invested in the choices made available to you through your company plan. Big 401K providers don’t do this out of the goodness of their hearts, after all! In fact, in 2009 Senators Tom Harkin (D-IA) and Herb Kohl (D-WI) introduced and had passed the Defined Contribution Fee Disclosure Act of 2009 to force companies to disclose these fees among other things.
Another thing you don’t have with your company 401K is Read More …
