Ask Terry Questions Rolling over my 401k

Rolling over my 401k

By Terry Savage on February 10, 2019 | Financial Planning / Retirement

Is it wise to have one financial planning company manage the lion share of our retirement investments? I retired in October 2018 and have not yet rolled over my 401k from my former employer, which is managed by a major financial company, into our investment portfolio managed by an equally large and well-performing financial planning company. I like and trust our financial planner, but I’m hesitant about putting all of our eggs into one basket. My husband is of the opposite opinion and thinks consolidating our investments with one company is the smart thing to do. What do you think, Terry?

Terry Says

Well, let’s discuss whether you’re worried about having all your money in one place — or just relying on the advice of one advisor!

From the safety point of view, your investment accounts are protected by SIPC — the securities investor protection corporation — up to $500,000.  But the financial planning company might not keep all the money at one institution or brokerage firm, if it exceeds this limit.  So your money would be “safe.”

Now, let’s discuss the “large and well-performing financial planning company.”  If they haven’t asked you before this about the nature of your 40l(k) investments and how they are allocated, then they simply aren’t doing the job!  Even if they didn’t “manage” those 40lk monies, they should have “considered” them when they recommended the asset allocation for the money they do manage!   I’m wondering if this company is simply a brokerage firm, collecting fees and commissions??   In that case, they will be delighted to collect more fees and commissions if you do a rollover. k BUT this will not be a “financial plan” for retirement!

I suggest you meet with a FEE-ONLY Certified Financial Planner who is a FIDUCIARY.  All three ingredients are necessary.   A FIDUCIARY planner promises to fully reveal all fees and commissions — and to put your interests ahead of his/her own.   I suggest searching for such an advisor at — a site where advisors meet these standards and are carefully vetted.  Or you can search at — the website of fee only financial planners, and ask if an advisor will put the fiduciary pledge in writing.

That way you’ll get a complet4e overview of your entire retirement planning — as well as issues related to estate planning, tax planning and insurance.


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