Changing jobs brings many questions when it pertains to what you should do with your 401k account. Should you roll it over to an IRA? Cash it out? Or roll it into your existing plan?
I recently had an appointment with a client that was dealing that very issue. The client has a 401k with a well known company at his previous employer and had just started a new job. Out of coincidence, his new employer’s 401k was also with the exact same company. While that may seem like a slam dunk, we still wanted to explore what was the best option for him. Here’s a rundown of some of the questions that I asked that ultimately led as to why it made the most sense to rollover his old 401k into his existing one.
How Good are the New Investment Options?
Just because it’s easy to roll your old 401k into your new one doesn’t mean you should if your investment choices suck are less than favorable. Take some time and get a list of what your options are. If the returns are inconsistent or the fees look too high, then opt to roll your 401k into an IRA and manage yourself or hire a financial planner.
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