Recently I was approached by Rodney Brooks at The Washington Post to discuss 401(k) best practices, and the relatively common trend of employees leaving their 401(k)s with their former employer upon exiting a job.
Here’s my take on that notion: don’t leave your 401(k) retirement money stranded with an old employer.
In this modern economy, multiple job transitions that span the length of one’s career are the norm; the average employee does not stay stagnant at one singular company for the entirety of their working life.
When you leave a job, you typically clean out your desk, your supplies, all of the belongings that are rightly yours. Your 401(k) should be included with the things you “pack up.” As you exit your position, confer with an investment advisor (such as Rebalance) to help with the process, or, do it yourself in concert with a reputable firm (such as Vanguard, Fidelity, or Schwab) to ensure you keep your money all in one place.
Consolidating your 401(k)s into one singular “Rollover IRA” has multiple positives:
1. The ability to have holistic planning
2. Lower cost
3. A sense of control over your retirement assets
To find out more of the variant benefits of this best practice, read my full interview with The Washington Post.