Weekly newsletter with my thoughts about financial planning, investments, tax planning, aging, and more!
Why you may want to roll over old 401(k)s
I've helped clients with rollovers for over a decade. This is where you move money from an old 401(k) plan (or other retirement plan) to a new retirement plan or Rollover IRA.
But, today, I'm sharing a personal story.
Generally, I know which companies are easier to work with, how they process rollovers, and where there may be pain points.
In the financial industry, rollovers are a notoriously painful process. If you've ever tried to do one, you may have had to complete 10+ pages of paperwork with jargon or call and wait on hold to process it verbally.
Then, you may have to wait a couple of weeks for the rollover check to arrive in the mail and deliver it to your custodian to deposit.
It's slow.
It's designed to make it challenging to get your money out.
Some firms put up extra barriers by requiring a "medallion signature guarantee."
I'm in the process of doing my own rollover, which I've never done because I was in the same job for about a decade.
I thought other plan administrators were bad, but mine says their standard processing time is 7 to 10 business days.
This is to mail a check based on a form I completed online!
I get frustrated by other plan administrators, but maybe I should give them more credit. They often can mail a check within a business day or two. Plus, they can often send the check to the new custodian.
My plan administrator is sending me the check to deposit.
I'm disappointed in the entire process.
What's the lesson learned?
If you have money in a prior employer's 401(k) plan, you may want to consider rolling it into your current 401(k) plan or an IRA where you can direct the investments and make your own distributions.
I can't imagine if I was in retirement and actually needed a withdrawal from my 401(k) and had to wait about half a month for them to process it and possibly another week for the check to arrive.
Plus, having fewer accounts can make it easier on loved ones to step in if you become incapacitated or die.
Before you make any changes, ask about fees, review the investment options, consider the service you are receiving, and any other benefits.
Enjoy the week!
Blog This Month
What Is It Like Working With a Virtual Financial Planner?
What I've Been Reading
- ‘You can’t say that!’: how to argue, better | Friendship | The Guardian
- The Disappearing White-Collar Job - The Wall Street Journal.
- The Harms of Hospital Mergers and How to Stop Them
- Cash Out Old I Bonds to Buy New Ones for a Better Rate
- Delay the Date, Not the Gratification | Morningstar
- What Happens After a Bad Year in the Stock Market?
Resources
How to Manage Your Resources for Widows - Hear directly from widows about the decisions they had to navigate, how they lived with grief, and the wisdom of what they want you to know after reflecting back on their experience.
Widows and Money Facebook Group - A community to learn about money, feel empowered around your finances, and ask financial questions.
More Than Money: Real-Life Stories of Financial Planning - Stories about the impact and value of financial planning. My story of Sara and Leo is on page 205.
Welcome, I'm Elliott!
Weekly newsletter with my thoughts about financial planning, investments, tax planning, aging, and more!
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