4 Things To Know Before You Roll Over Your 401(k)
A recent study from 401(k) rollover specialist firm Capitalize revealed that Americans have, in total, a stunning $1.35 trillion of "forgotten" retirement assets. Many people who change employers don't roll over their 401(k) when they do so. As a result, the assets in those plans are often left to sit unmanaged by their owners, and allocated in suboptimal ways.
If you have an old, ignored retirement account that's invested in funds with high fees and low returns, over the decades, that could cost you a lot in lost returns -- hundreds of thousands of dollars in a worst-case scenario.
Enter the 401(k) rollover. For many reasons, it often makes sense to bring your retirement account assets along to your new employer's plan when you change jobs. However, there are situations where you could be better off leaving it alone. Simply taking the time to think through the decision puts you far ahead of those who have left 401(k) accounts behind and forgotten about them.
Source Fool.com
