Rethinking IRA 401K Rollovers

Our Method

Depending on their status, 401Ks can offer a number of challenges – and opportunities – for financial advisors. It usually depends on the employment status of the client. We generally deal with three types of 401Ks:

  • Moving an old 401K account into a new one
  • Moving an old 401K into a Rollover IRA such as a Roth IRA
  • Reinvesting 401K account funds when an employee turns 59 1/2

Our Strategy

While many financial advisors have standard methods for dealing with 401Ks and how they invest these funds once they are freed up, Secure Money Advisors looks at things from a considerably different but effective perspective not just for 401K funds but most investment portfolios.

They include:
  • We’re not selling our clients investments but building a plan for their portfolio.
  • The plan is based on data and math.
  • If the math doesn’t line up with your investment strategy, we’re not going to encourage you to move your funds from their current location.
  • As a result of this strategy, we consider ourselves problem solvers, not sales people.
  • Once you trust the data and math and see the results, you’ll be more confident in your investment strategy.

Frequently Asked Questions

  • Can I move an old 401K into a new one?

    Yes, but it’s more advisable to work with your financial advisor to invest the money elsewhere because your investment options in a 401K are controlled by your employer and limited.

  • Where should I move the funds from my old 401K?

    We suggest an IRA 401K Rollover, such as a Roth IRA. This is more prudent than rolling your funds into a new 401K.

  • When I turn 59 1/2 can I have access to my 401K account?

    Yes, that is the age when you can access all your 401K funds and invest them elsewhere, often a good strategy because you’re 401K portfolio is limited to a small number of investment opportunities.

  • What if your strategy for investing funds from a 401K once I turn 59 1/2?

    Our investment strategy remains the same no matter where the funds come from. We rely on data and math to come up with precise and mostly successful investment opportunities that match your situation.

  • If I take all my money out of my 401K when I turn 59 1/2, is that the end of my 401K?

    No, you can still contribute to your 401K and receive matching funds from your employer, if that is the case at your company.

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