Should I Roll Over My 401k? - YouTube

Roll over! Roll over! Rome, roll over! All right, here at blooom today, we're talking

about rollovers. Not particularly these kind of roll overs, we're talking about

401k rollovers. We hear those stats, that the average person may change

jobs, what, like 9 times 10 times in a career. So it's realistic that that our

clients will have multiple 401ks as they change jobs. So, there's really four

different things you could do with your old 401k. A couple of them are

completely wrong, and usually one or two of them is right. So, let's cover those. So,

you've got a 401k from your old employer. Let's assume you've left that company

and now you're working for a new company that also offers a 401k. So, here are the

options you've got. You can leave your old 401k behind. Usually, if you've got at

least $1,000 in that account, most of the time you're allowed to leave

that in the old 401k. You can also take that old 401k and do what's called a

rollover into your current 401k with your current employer. Now, is that

something that you could do - any new 401k will accept a rollover?

Almost all of them. I would still - I guess I disclaim this by saying check with your

new 401k provider just to verify that. Call the 1-800 number, make sure they'll

accept rollovers into it. But almost all plans do these days. Third option,

roll it out of the 401k and into an IRA. The fourth option, which is 99.9% of the

time completely wrong, is to take a distribution out of that 401k. Meaning, take

take the money, have it paid to you. Barring some terrible terrible, you know,

family personal emergency, that is the absolute worst thing you can do with

that money because you get clobbered in taxes and penalties. What is the right

answer? I mean is there a one size fits all or is it something that, you know, it

really depends on on circumstance? Well, here's the easy answer, what I hope our

clients know is that every single one of our clients, for no extra cost, has access

to a blooom adviser. They'll look at your old 401k, they'll look at your new 401k

and they can actually tell our clients what you're better off doing. You might

have a really good 401k that you've left, and unfortunately maybe a crummy 401k

they are now enrolled in. In that case, our advisors will tell you, "Leave that

401k with your old employer." Maybe it's the other way around. Maybe you've got a

high price kind of crummy 401k you've left behind, but thankfully your new

employer's got a real good plan. Maybe it's a Vanguard plan with real low-cost

options. Our advisors can tell you specifically what you're better off

doing. Maybe you've got two crummy 401ks. Maybe the right thing to do is to roll

that to an IRA. You know what? We can't manage those today. We can't charge you

on those. But, as a fiduciary, we will tell you, we'll tell our clients - What is a

fiduciary? As an investment advisor, we have a fiduciary duty to our clients.

Which means we have to give them advice in their best interest, not ours. We are

bound to that standard. And so, if the best option for our clients is to move

that money out of a 401k and stop paying blooom, we will tell you that if you ask us

that. So we'll give you the confidence that you're making the right decision,

that you're better off doing one thing over another. Most people don't like

having their money spread out. We've seen some people that have had four or five

401ks. What a nightmare that is, trying to, you know, keep tabs on all that. And

you've got statements coming in at different times - Especially if there are

different providers you could have them at, you know, spread out over three or

four different places. Exactly! What if your 401k at your current

employer today was a good plan and it allowed rollovers into it, so we could

go get all those old 401ks, put those into your current 401k, all under one

roof, simplify your life, and you'd only pay one blooom fee. That would be huge. But I think

the takeaway from all this is just, if you've got old 401ks and you're

wondering what you should do do with them, before you even pay blooom, or if

you're paying blooom right now for multiple accounts, I'd encourage you to

ask our advisers what's in your best interest, "What should I do

with these old accounts?", and you'll get the analysis back, and they'll tell you,

as a fiduciary, what's the best thing for you. Chad, this is what I used to do

for people that were worth millions of dollars. They'd come to me with these

types of questions and, guess what? I'd sit down and do all the analysis for

them, as a fiduciary. And now all of our clients, regardless of your account

balance, can get that same service from a blooom

advisor. So, remember, you can always look to blooom for independent financial

advice. If you ever need any help, just go to blooom.com, click the green circle in

the bottom right corner for some help. If you like this information, if you found

it helpful, please pass it on to your friends, family, mailman, anybody. Thank you.