Benefits of Rolling Over your 401(k) to an IRA
- Freedom from restrictions that may be present in your workplace savings plan
- Consolidation=A more complete view of your financial picture, making it easier to maintain appropriate asset allocation.
- More Investment Options in an IRA. Your 401k plan has limited investment choices. With an IRA, you’ll have access to a wide array of low-cost savings and investment options such as mutual funds, ETF’s, stocks, bonds, CDs, annuities and other investments in virtually every asset class.
- Access to Lower fee investment options. Reducing your investment costs is one of the most reliable ways to improve your investment returns. In addition to limiting your investment choices, many 401k plans include an administrative fee. A 2009 study by Deloitte and the Investment Company Institute found the median admin fee to be 0.72% of assets annually. In contrast, you may qualify for a no annual maintenance fee IRA. Between less expensive investment options and lower administrative costs,
It’s likely that you can reduce your total investment costs by approximately 1% per year simply by moving your money from a 401(k) to an IRA. That might not sound like much, but when compounded over many years, improving your investment return by 1% can have a dramatic impact on how long your money lasts in retirement. Try thinking of it this way: If you plan to use a 5% withdrawal rate from your portfolio, paying investment costs of 1% per year would mean that you can only actually spend 4% of your portfolio value–that’s a 20% reduction in your ability to spend!
- The ability to potentially avoid a 10% IRS early withdrawal penalty for a first time home buyers or qualified education expenses
Ongoing access to a Chartered retirement planning counselor CRPC® at The Hajdari Group
Before rolling over your 401(k) to an IRA please consider distributions are generally subject to 20% withholding against taxes unless they are rolled directly into IRAs. Please consult with an advisor prior to conducting a rollover.
Call us at 212-381-0050 or contact us today for a complimentary consultation with a financial advisor to learn more about rolling over your 401k plan into an IRA.
Why You Should Choose a CRPC Designee to Help Assist in Rolling Over Your 401(k)
What are you doing now to support the retirement lifestyle you envision?
- Whether retirement seems a long way away or is already a reality, today’s changing times require us to think about the future now. Planning for retirement at any stage of your life means analyzing your needs and wants and valuating them according to what your financial situation will allow. From there, you’ll need up-to-date information to plan a retirement that will let you consistently maintain your lifestyle. Preparing for retirement can seem like a monumental task, especially if you’re still on the job or are just now finding out that your preretirement preparations weren’t adequate! We can help you plan a new beginning.
- Learn about your options by turning to a professional in retirement planning—a CHARTERED RETIREMENT PLANNING COUNSELOR or CRPC® designee. CRPC® designees can provide you with an understanding of complex pre- and post retirement issues. From helping you maximize sources of retirement income to guiding you through investments, a CRPC® designee will effectively identify and analyze what you should do today to ensure a more confident tomorrow.
- Get advice from a Retirement Planning Professional. A CRPC® designee can evaluate your financial status and design the optimal retirement plan for your lifestyle. Get the knowledgeable advice you need on issues such as planning for health care, asset management, beneficiary designations, income tax considerations, estate planning, and more. A CRPC® designee can even help you determine the best time to retire or assist you in expanding on the plans that you’ve already made.
- Educational Program: The College for Financial Planning® provides CRPC® students with a thorough education Focusing exclusively on retirement planning. Study materials are written and updated regularly by the College’s full-time faculty, who specialize in retirement planning and provide the most current information on retirement options.
- Client Needs Assessment: The CRPC® program teaches students how to assess a client’s long-term planning situation and needs—and then evaluate retirement options and make appropriate recommendations. This is what distinguishes this program from others in the industry.
- CRPC® Mark: To be entitled to use this mark, candidates must successfully complete the specialized program and pass a rigorous examination, sign a code of professional ethics, and complete a disclosure form attesting to their professional conduct.
- American Council on Education (ACE): The CRPC® program has been reviewed by ACE and recommended for college credit in the upper-division baccalaureate level in the categories of finance or investments.
- Continuing Education Credit: All CRPC® designees must sign a commitment to ongoing continuing education to ensure that they receive up-to-date information about current issues impacting the area of retirement planning.
- Freedom from restrictions that may be present in your workplace savings or retirement plan.
- Consolidating retirement assets into an IRA makes it easier to maintain appropriate asset allocation
- You will have access to more savings and investment choices.
- You may likely reduce your administrative costs.
- You will have ongoing access to a Chartered Retirement Planning Counselor at The Hajdari Group.
Call us at 866-746-3459 or contact us today for a complimentary consultation with a financial advisor to help you determine if rolling over your 401k to an IRA is the right thing for you to do.