If you’re trying to prep for retirement, Tom Zgainer, CEO of America’s Best 401(k), has some advice.
If you’re looking to retire by the end of 2019, or sooner, here’s what Zgainer says you should be thinking about:
Well they gotta be thinking of, are they exiting out their work for good? Are they gonna transition to another type of employment? So they have some options, for example you could leave your existing 401(k) if your balance is greater than 5,000 dollars, you can keep it with your former employer. In theory might that be a good thing? I don’t know, because what if your employer changes providers? What if the fees goes up? What if you don’t have the proper access? You’re kind of out of control of your own money. As a general I would suggest that if you’re about to retire, and you’re at an age where you can start to take distributions, roll those moneys out perhaps to an individual retirement account where now you have complete visibility. We speak to a lot of folks that say I have 401(k) plans from four employers, I’m trying to track them all down. It’s your money, and you left it behind. So I suggest if you have got multiple accounts, as you’re getting towards retirement, thinking about consolidation.Two reasons, complete visibility, strategy that’s all consistent, and a fixed cost. So you don’t have this one has different expenses than this one, consolidate those points.
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