Transferring multiple 401k’s
Hi,
I have multiple 401k accounts from previous employers that are each performing differently. I want to transfer everything to one account which I am assuming would be an IRA. How do I find a reputable and certified financial advisor? Is it best to go through a bank? I should note that I am currently not working due to layoffs so transferring to a current employer account is not an option.
I am in my early 50’s so I don’t want an aggressive approach.
Terry Says
First of all, you can do this on your own — without paying a financial advisor, and possibly getting into expensive and inappropriate investments.
First, read this: Rollover Now – Terry Savage
Whether you choose Fidelity or Vanguard, they will do the work of contacting your previous employers, and having the money sent directly to your new rollover account. Using this method, there will be no taxes and no hassles.
Then you have to make a decision about investing it. I’d suggest half in a “balanced fund” and about 30% in a money market fund, and maybe 10% in a natural resources fund, 10% in a small company funds. You still have many years to go before you retire, and you’ll need the long-term growth that the stock market provides.
