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5 Factors To Consider Before You Roll Over Your 401(k) To An IRA

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During my working years, I invested regularly into my 401(k).  I chose to use my 401(k) to take advantage of the considerable tax benefits available to an early retiree. This consistent saving, combined with an incredible bull market over the last decade of my career, left me with a substantial balance in my 401(k) when I left in December.

One of the first things that I did upon leaving was figure out what to do with these investments. When leaving an employer, you can leave your investments in your 401(k) or you have the option to roll over the funds to an IRA with the brokerage firm of your choice.

The overwhelming majority of money pouring into IRA accounts is from rollovers from employer-sponsored retirement plans. This is an area of intense competition among brokerages that desperately want this money under their control, allowing them to charge asset based management fees. I strongly recommend reading the FINRA Investor Alerts on this topic to help make an informed decision before rolling over any money.

Either decision could be the correct choice for you. I will walk you through my decision process and share five key factors that can be important when you make this decision for yourself.

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Identity Theft Strikes Home!

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