Consolidating 403b benny boom dating
"They see this as a source of money if they cash the 401(k) out." How to Play Your Options The best strategy for consolidating these old 401(k)s will not necessarily be the same for everyone, according to Sarah Walsh, vice president of retirement solutions at Fidelity Investments.
Although the most common piece of advice one may hear from friends and family is to rollover your old 401(k) accounts into an IRA, this might not always be the right option.
Goldstein, vice president and private CFO at o XYgen, says the chance to have immediate money on hand can unfortunately be too tempting for some people in their 30s to pass up.
"For people in this age group there are other cash-flow needs -- maybe they recently bought a home or just had kids and they are cash-flow strapped," Goldstein says.
At the larger 401(k) providers, it could be as simple as making one phone call.
for clients in their 20s and 30s -- or the so-called Generations X and Y.Walsh says the reasons for leaving money in a former company's 401(k) could include its attractive investment options that are institutionally priced and because it has favorable money-management services."These are perfectly good and valid reasons for leaving your money there," Walsh says."One of the biggest issues for this demographic is they have four or five small accounts, and so it doesn't seem like a lot of money to them." In fact, Lewis says that he recently met with a young married couple who each had multiple old 401(k)s, with roughly ,000, ,000, ,000 and ,000 in them respectively."They said that they didn't think it was a lot of money," Lewis says. Goldstein, vice president and private CFO at o XYgen, says the chance to have immediate money on hand can unfortunately be too tempting for some people in their 30s to pass up.
"Now you can go online and move money or call up the provider -- I'll even make the call if a client doesn't want the hassle of making the call themselves." By Paul Menchaca NEW YORK (Main Street) --For professionals in their 30s, a decade-plus spent in the workforce not only means that they've held a number of different jobs at different companies but also that they've held multiple 401(k)s spread across their former employers.