When, How, and Why would you rollover your 401(k)?
Maryland Annuity Resource offers 401(k) rollover services in Maryland, Washington D.C. and Virginia. We believe that a 401(k) is paramount in any investment portfolio. There are many things to learn about 401(k) plans and all of their options. This section is designed to give you the most updated information about these types of plans. There are many things to consider rolling over your 401(k) so we want you to understand all of your options.
When do I rollover my 401(k)?
When you are working for your employer, you most likely contribute to your 401(k) plan using only the allowed investment options that are included in the plan. These can be stocks, mutual funds, ETF’s, and even your own company stock. Some employers will match your contributions and some will not. We are seeing an alarming number of companies either reducing the match or removing it all together.
If you leave your job, that is the best time to rollover your 401(k). If your investments selections continue to lose value, then that is a great time to rollover your 401(k). If your company either reduces or does away with any match, that is when you might consider a partial or full 401(k) rollover. If you really do not have a clue about stocks, mutual funds and the other investment vehicles in your plan and you continue to see a negative growth, that that would be the ultimate time to rollover your 401(k).
How do I rollover my 40(k)?
If you have left your job and gained employment with another employer, you could rollover your old plan in the new company plan. This is referred to as a direct rollover. But again, if the only choice for your plan is stocks, mutual funds and you really do not want to risk your hard earned money, then it could be the best opportunity to rollover your 401(k).
The process is really simple to rollover your 401(k). Some of the things to consider are how comfortable are you with the plan investment choices. If you understand stocks and have not lost money to stocks then I want to know your secret. If you understand mutual funds, please tell me a couple of your mutual fund choices where there are no hedge funds invested in that mutual fund. If you really understand the investment and its risks, you will most likely not lose money. The best advise I can give is to pick safe investments and choose annuities for your 401(k).
Why would I rollover my 401(k)?
There comes a time when you are about to retire when you most likely will rollover your 401(k) from your current employer plan and turn on an income stream for retirement. Not all 401(k) plans will guarantee an income stream when you retire. They are just there to build up assets until retirement. When it comes time, there really is no guidance of what this nest egg will actually do for you. That is where we can help. We can tell you exactly how much your 401(k) can provide on a monthly basis.
You cannot depend on a percentage rule. People are living longer and longer and most people will outlive their retirement nest egg. We would rather you overestimate your needs, than underestimate the amount you will actually need to retire.
There are many options that can put you back in the same situation as you were before. We want to expose you to another option. That option is Annuities. Yes you can have a 401(k) Annuity. But at least you will not have the chance to lose money. We can guarantee that.