401(k) Planning


How your 401(k) plan assets are invested is ultimately your responsibility. This important decision should be based on your risk tolerance, time horizon and a number of other factors.  Many employees make the mistake of not reviewing their portfolio regularly, as their life and investment markets change.  If you would like an initial, complimentary consultation, please complete the short form to the right. 



During the height of the recession, many people were laid off, retired (in some cases earlier than planned), or changed jobs. In many instances they left their money in their former employer’s retirement plan. What exactly are your options when you leave a company and which one should you choose?

This is an extremely important question because as more and more companies move away from pension plans and place more responsibility on employees for funding and managing their retirement savings, it is crucial that you, or at least a trusted advisor, understand the plan’s details and whether it’s the best option for you. Much has been written about how ill prepared the majority of Americans are for retirement. Making sure that you are managing the money in these plans as optimally as possible is an important part of any retirement plan.

So what are your options? Essentially there are four: 

  • Keep your money in your former employer's 401(k) plan. Understand the rules. As a former employee, there may be account minimums, extra maintenance fees, or limited investment choice changes.
  • Roll your money into your new employer's 401(k) plan. Consolidating your retirement money makes it easier to manage. When you leave a retirement account at a company for which you no longer work, you may pay less attention to its performance or downplay its importance in your overall asset allocation.
  • Move your money into an Individual Retirement Account (IRA). This choice may give you the maximum control and flexibility. With a 401(k) plan, the employer chooses the investments and makes the rules.
  • Cash out your old account. Think long and hard about this choice. It’s very seldom the best and can trigger a big tax bill!

There are advantages and disadvantages to each option. You need to understand and evaluate them based on your own personal situation. Having assets in multiple accounts from different providers can be difficult to maintain and monitor. By consolidating your investments in one place, you are in a better position to know where you stand and to take control of your financial future.

Our extensive experience with rollovers makes it easy to transfer all your accounts and gain more clarity about your financial situation. There’s no better time to take control than now. Just as time and compounding can be powerful tools in growing your investments, so, too, can time seriously jeopardize those investments if the plan is poorly conceived. Whatever your financial goals, we offer solutions that give you the opportunity to achieve greater financial and personal well-being.

If you would like an initial, complimentary consultation, please complete the short form above or call us today at 401.681.4825.


* We use the more popular 401(k) term, but this could be a 403(b), 457(b) or other workplace savings/retirement plan.