Consolidating 401k ira
The survey was hosted and administered by TNS between October 21 and November 22, 2010.
There’s yet another wrinkle in the new age of retirementand job insecurity— keeping track of all those company retirement savings plans you’ve racked up, along with that IRA you opened years ago, and creating a coherent investment strategywith them. “Our current system of self-directed retirement accounts really requires people to do what they’re not equipped to do,” says Teresa Ghilarducci, director of the Schwartz Center for Economic Policy Analysis at the New School in New York.
We are happy to review your accounts and provide guidance.
The study was compiled from an online survey of 1,093 Fidelity participants who currently have an employer-sponsored retirement plan with a former employer, have stayed in their workplace plan for at least 120 days since leaving their employer, have at least ,000 in plan assets, and are the financial decision makers for their retirement plans.
Changing jobs is a busy time so thinking about what to do with your old 401(k) is often not a priority.
If you are among the many busy people who have multiple retirement accounts at different firms, this post is for you.
In most cases, experts say, people should consolidate their accounts; to do otherwise flies in the face of fundamental investing principles.
The successful growth of the 401(k) plan marked a change from employers taking care of employees via a pension plan to employees needing to do-it-yourself.What is clear is that there is an enormous amount of money at stake.Employer-sponsored, direct contribution plans — 401(k)s, 403(b)s, Keoghs and others — alone held an estimated .5 trillion in assets.New Puzzle Though retirement experts of all kinds are familiar with the problem, no one knows how many Americans are juggling multiple 401(k)s and IRAs.(The Employee Benefit Research Institute, EBRI, has just undertaken a study.) There’s no shortage of anecdotes, though.