By now, you’ve probably received that annual performance report for your 401(k) retirement plan, prompting you to ponder the age-old question: “Am I satisfied with my returns?”
While many Americans stick with their employer-sponsored plan, there’s a lesser-known alternative that could give you more control over your financial future: the in-service rollover to an Individual Retirement Account (IRA).
Allowing you to transfer assets from your 401(k) to an IRA without penalties, this strategy opens up a world of investment options beyond what your company plan offers. Think broader horizons, greater flexibility, and potentially better protection against market volatility.
But before you jump ship, consider the downsides, too. IRA assets lack some creditor protections and loan provisions that 401(k) plans provide, so weigh your options carefully.
If you’re unsure about navigating the world of investing solo, a financial advisor could be your saving grace. Their expertise can help tailor your retirement accounts to match your goals and risk tolerance, potentially leading to improved long-term performance.
Whether you opt for an in-service rollover, self-directed brokerage account, or seek professional guidance, taking charge of your retirement accounts is a proactive move towards securing your financial future. It’s time to steer the ship in the right direction and set sail towards a prosperous retirement.
