401K
I have quite a few 401k plans from previous employers, I feel like my assets are all over the place. What is the best advice, leave the accounts as they are or move them to one account. I would appreciate your advice.
Terry Says
I would definitely roll them all into one place -- for several reasons. First, the accounting and eventual withdrawals are easier. Second, you get a better look at your total asset allocation (exposure to stocks, sectors, etc) when your money is in one place. And third, you get a broader selection of investments -- especially as you age and become more conservative. Remember 40l(k) plans are designed primarily for accumulation of assets; at some point you want to switch to a focus on preservation of assets! I would contact the retirement rollover department at Vanguard or Fidelity. They will facilitate the transfer directly into on new IRA rollover account -- AND they will advise on asset allocation. Do NOT take the money yourself to open this new account. You could run into a tax liability. Instead, allow your new custodian to handle the process.
