Leaving Your 401k with an Old Employer Is Like Keeping Your Ex’s Name on Your Checking Account
When change happens in our lives, it's natural to have many tasks to juggle. A job change can be an exciting transition, but amidst the flurry of new responsibilities and setting up in a new environment, some things get left behind. One of the most overlooked aspects during this process is the 401k account we’ve built at our previous job. You might have left it there because it slipped your mind or perhaps you felt it would be a hassle to move.
Why is leaving your 401k with an old employer like getting divorced and still having your ex-partner's name on your checking account?
Loss of Control: Just as having an ex on your checking account means they can still influence your financial decisions, not moving your 401k may limit your control over investment choices and could subject you to plan fees you're not even aware of.
Changing Custodians: Companies often switch 401k plan custodians or plan administrators. When that happens, if you're not actively engaged with that former employer or checking on your 401k, you might miss critical notifications or updates.
Risk of Losing Track: Believe it or not, we’ve seen instances where individuals have lost traces of their 401k accounts due to company mergers, rebrandings, or administrative changes. It’s like an ex-partner withdrawing money without your notice; you won’t see it coming.
The Good News: It’s Not That Hard
Thankfully, consolidating or moving your old 401k to a more current retirement account is not a herculean task. It’s like finally updating your bank details after a big life change - straightforward and relieving.
In fact, it can take just about 15 minutes to initiate the process. Moving your 401k allows you to:
Consolidate your retirement savings for easier management.
Possibly access a wider range of investment options.
Potentially reduce fees if your current or new provider offers a more cost-effective solution.
Take Action Today!
Life moves fast, and it’s easy to overlook some things. But when it comes to our hard-earned money and our future security, it’s essential to take control.
If you’ve left a 401k with a previous employer, consider it a nudge to review, consolidate, and potentially move it. Reach out today and let us help you. Schedule a quick consultation, and we’ll guide you through every step, ensuring your retirement savings are in the right place.
Remember, just as you wouldn’t leave your financial present tethered to your past, your future deserves the same consideration. Secure it by taking action on your old 401k today.