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- How do I know when to roll over a 401(k)?
Hi, I'm Rachel Sanborn, Lead Financial Planner for Ellevest.
“Rolling over” means moving the money you have in a 401(k)
with an old employer into a new retirement account.
It could be an individual retirement account or IRA
or a new 401(k) with your current employer.
There are two big things to look for:
the first is the fees you’re charged
by your provider today
versus the fees where you'd move it.
If you're looking at rolling over to Ellevest,
we'll analyze how much you would pay
for similar investment options at your old 401(k)
versus us, and we'll show you what that difference is
so that you can make an informed decision.
That's free.
We do this because Ellevest is a fiduciary,
so we put your interests ahead of our own.
The second is the range of investment options that you have.
Consider an investment portfolio
that includes some low-cost index funds.
Research has shown that index funds outperform
other funds over 80% of the time in most major investment
categories, partially because they have lower fees,
so you wanna make sure you have some in there.
At Ellevest, when you create a retirement plan,
you give us your retirement account info
and we'll recommend a mix of funds
that we think will give you the best chance
of hitting your retirement goal amounts.