When you change jobs or retire, you’ll want to decide what to do with that old 401k plan from your previous employer. You really have 3 good options - leave it there, roll it over to your new plan if you’ve changed jobs and your new employer offers a 401k, or you can roll it over to an IRA. But how do you know which option is right for you? 

So this week, I’m teeing up for you 5 questions that you’ll want to ask before you do anything with that old 401k. 

Today’s question that you’ll want to ask before touching that old 401k is: Will the investment options be better? 

When you change jobs or retire, you don’t actually have to take your money out of the 401k plan. If you have more than $5,000 in the plan, you could leave the money there. But you definitely don’t want to leave your money in your old 401k plan if the investment options are a complete dumpster pile of rubbish. 

One of the drawbacks of the 401k plan is that your investment options are chosen for you in most cases, so you can only choose from what’s selected for you. Some plans have a great lineup of funds with good quality and variety. However, I’ve seen my share of complete garbage over the years. 

If you aren’t thrilled about what’s available to you in your old 401k, it might be wise to move your money out sooner rather than later. 

And when you rollover your old 401k to an IRA, you have tens of thousands of investment options that are open to you, and you can hand over your IRA to an advisor who can take care of all the investment management for you - another plus of rolling over your old IRA - freeing you up to focus on other things that are most important to you. 

That’s it for today!  Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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