Unlock the Power of Rollovers: Turning Old 401(k)s into #retirement #income Streams. #legacy #retirementplanning

When it comes to retirement planning, one of the most overlooked opportunities is what to do with old 401(k)s or other employer-sponsored retirement accounts from previous jobs. Many people leave these accounts sitting dormant, unaware that a simple strategy—rolling them over—can open the door to greater control, flexibility, and income potential in retirement. If you’re focused on building a secure financial future, understanding rollovers is a critical step. Let’s explore why rollovers matter, your options, and how they can fuel steady income streams for your golden years.

Why Consider a Rollover?

Leaving an old 401(k) with a former employer might seem like the easiest choice, but it often comes with limitations. You need a fiduciary, you need a team of experienced professionals. You’re typically stuck with the investment options offered by the plan, which may not align with your current goals. Fees can also erode your savings over time, and accessing the funds for income might be less flexible than you’d like. By rolling over these funds, you gain the ability to take charge of your retirement strategy.

A rollover allows you to transfer funds from an old 401(k), 403(b), or similar plan into an Individual Retirement Account (IRA) or another qualified retirement account without triggering taxes or penalties, as long as it’s done correctly. This move can set the stage for a more personalized and income-focused retirement plan.

Rollover Options: What’s Right for You?

When considering a rollover, you generally have two main paths:

1. Rollover to an IRA: This is the most popular choice for good reason. An IRA offers a broader range of investment options—think stocks/bonds/mutual funds/ETFs, and even alternative assets like real estate or annuities. With this flexibility, you can tailor your portfolio to generate income, whether through dividend-paying stocks, bond interest, or systematic withdrawals. *Plus, IRAs often have lower fees than employer plans, leaving more money working for you.

2. Rollover to Guaranteed Lifetime Income: Features for a rollover type is protection of principle, with a 0% loss guarantee. Share in market gains, protection from negative slump. If guaranteed lifetime income is not a fit, there are other options.

3. Rollover to a New Employer’s 401(k): Hopefully, your new company offer a 401k match, and you are taking advantage of free money. What is 'free money?' Read more about it , here: https://www.advocateinsurers.com/post/what-type-of-money-do-you-have-how-much-will-you-need-in-retirement-we-can-assist.

   
   

   If you’re still working and your new employer offers a solid 401(k) plan, you might consolidate your old account into it. This keeps things simple and may provide access to low-cost funds or unique features like loan provisions. However, investment choices are still limited compared to an IRA, so weigh this against your income goals.

Let's review your individual situation, allow our team to evaluate, review and implement a wealth-building strategy tailored for you.