Points to Consider before Processing a Rollover

[Note: Although this article refers to 401(k) plans, the same points apply to 403(b) and 457 plans]

First, take your time and beware, this is your hard-earned savings we’re talking about. There is a lot of competition among big Wall Street firms to get you to roll over your account and, believe it or not, these firms are not that interested in your financial well being. They want you to believe that you must roll over your 401(k) and, of course, that you should roll it over to them. FINRA, the agency that regulates the financial industry, is so concerned about conflicts of interest in the advice these firms deliver that they issued a notice to brokers that a rollover is not always in the client’s best interest. In fact, FINRA warned brokers that it will make misleading rollover advertising an audit priority in 2014.

If you just left your job, you likely have some pressing matters to deal with. A hasty rollover decision is not going to help in the long run. If you are looking for advice about your 401(k) rollover options, start by considering the following:

1) Should you use this as an opportunity to evaluate your overall retirement strategy?
2) Would you benefit from having a relationship with an advisor you can trust to help with your investment planning and any other financial issues that may arise?

At Main Street Financial, we are Certified Financial Planners™ and we operate under a fiduciary standard, which means we will advise you based on what is in your best interests. This is a more rigorous standard than the suitability standard followed by stockbrokers and registered representatives of brokerages. We’ll walk you through the pros and cons of whether a rollover makes sense for you, focused on doing what’s in your best interest, not on selling you a product that might just be ‘suitable’ to someone like you.

There are many factors to take into consideration when deciding whether or not to roll-over your 401(k), 403(b) or 457 plan. This could be an important time to consider speaking to an investment advisor.

If you’d like to speak to a Certified Financial Planner™, with no-obligation, please call us at (914) 242-0553 to see if you can benefit from working with us.

Read more about why you should consider Main Street Financial
Read more about when to NOT roll over your 401(k)
Read more about the mechanics of completing a rollover