Congratulations! If you have an old 401(k) sitting around, that means you are part of the 1/3 of Americans saving for retirement. (Yes, I said 1/3. Scary, right?). A 401(k) is a great investment vehicle when you can enjoy employer matching and automatic contributions, but once you’ve moved on from a job, it can be a pretty inefficient and costly place to keep your money. Below are 5 reasons why you should consider rolling over your old 401(k) into an IRA with GAISER:
1. FEES – There are two different types of fees that investors should be aware of; Administration Fees and Fund Fees. Administration fees are normally charged by the 401(k) plan administrator for things such as record-keeping and custody of a dormant account. If you are charged an administration fee, you are basically paying a fee to have an account sit custodied – a service included for most active accounts. In addition, investors may be subject to fund fees. Fund fees are charged by the mutual fund and other investment companies and vary widely across the spectrum of funds. The problem is that these fees are often hidden and frequently the investor has no idea how much he or she is paying to have their money managed. GAISER offers a free portfolio analysis tool to show investors exactly how much they are paying in fund fees, and offers alternative options designed to lower fees.
2. MANAGEMENT – In all likelihood, an old 401(k) is not being managed. Often times, nobody is monitoring your account, or alerting you when it may be time to rebalance your portfolio. No one is there to notify you when the investments are lagging! The day to day management of the investments in the 401(k) plan is left completely up to you. GAISER will monitor your IRA on a daily basis and automatically rebalance your portfolio in a disciplined manner. This will ensure you stay on track to meet your long term goals and help you avoid costly, emotional missteps.
3. CONTRIBUTIONS – Most plans do not allow people to contribute more money to the plan once they have left the company. Why have a savings account that you can’t keep saving in? If you roll the inactive 401(k) into an IRA with GAISER, you have the option to make annual IRA contributions that will grow tax-deferred, or tax-free if you are eligible to contribute to a ROTH IRA.
4. INVESTMENT OPTIONS – One of the biggest downfalls of a 401(k) is that the investment options can be very limited. The list of securities eligible for investment in a 401(k) is chosen by the employer and is typically limited to funds with high commissions and hidden fees. GAISER invests in a professionally managed portfolio that is diversified across sectors such as US Stocks and Bonds, International Stocks, and Commodities. Investors are no longer limited to the dozen or so mutual funds typically offered in a 401(k). Additionally, GAISER clients will have access to more sophisticated investments on the Granite Springs platform once their portfolio hits a certain asset level.
5. CONSOLIDATION – Many investors find themselves with several inactive 401(k) accounts. If this is the case, rolling into an IRA allows you to consolidate all of them into one account for ease of management and tracking. It is very difficult to maintain a cohesive asset allocation strategy with accounts scattered all over the place. And frankly, who wants to leave money at a place where they no longer work?! It’s also quick and easy! With GAISER investors can get a free portfolio review, open an account and sign transfer documents in as little as 10 minutes. The entire process is electronic, paperless, and painless. “Not having the time” is no longer an excuse!
If you are interested in rolling over an old 401(k) to GAISER, click here to get started today! Feel free to reach out to us directly as well.
Granite Springs Asset Management, LLC
All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit nor protect against a loss. Past performance may not be indicative of future results.