Advantages of Rolling Over Your 401(k)
A 401(k) rollover is when you move your 401(k) account into an IRA. When you change jobs, you can rollover your 401(k); sometimes companies will allow you to do a rollover while you are still working there. It’s a tax-free move than can make sense for many reasons. A 401(k) plan has a limited number of investment options, usually a list of mutual funds. An IRA opens you up to a world of other investment options. Such as…
- Managed mutual fund programs. While you were invested in your 401(k) plan, you may not have made many changes – just rolled up and down with the market. Managed programs can offer you the ability to work with a professional money manager who might adjust your portfolio as the market environment changes, like sifting between cash, bonds and stocks.
- Index Annuities. Annuities are contracts issued by insurance companies where you shift some (or all) of the market risk to an insurance company. Index annuities tie your investment return to an index, like the S&P 500. They generally cap how much your account can grow, but they also can protect you from some (or all) market losses.
- Variable Annuities. Like index annuities, variable annuities are issued by insurance companies, but your upside is unlimited, and your downside is unprotected. But variable annuities can have a feature with a bucket that will always grow while you are not taking income. And when you take income, that income can last for life, regardless of how the account performs.
We help clients with rollovers all the time. Is it right for you? If so, want to know your options? Let’s talk about them. Let’s talk about what makes sense to you.
Securities offered through Securities America, Inc., member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Maynard & Associates Wealth Management and Securities America are separate entities.
Annuities are products of the insurance industry. Guarantees are subject to the claims-paying ability of the insurance company. Because annuities are designed for long-term retirement planning, surrender charges and other fees may apply if money is withdrawn before the end of the contract. All withdrawals of tax-deferred earning and subject to current income tax, and, if made prior to age 59½, may also be subject to a 10% federal income tax penalty. The contract, when redeemed, may be worth more or less than the total amount invested. Annuities are complex, and the manner in which they work, as well as fees charged can vary widely among the insurance carriers that issue them. An individual carrier may also offer differing products and revise tis products from time to time. Because individual circumstances and state laws vary, please consult with a professional when considering purchase.