When you are transitioning to a new job, there is so much to do — forms to fill out, phone calls to return, logistics to handle, and sometimes, hard conversations to have.
With all those details to navigate, it would be easy to overlook your retirement account.
So, if you are in the middle of a job change and wondering how to handle your retirement account, here are a few reasons to consider packing it up right alongside your other office belongings.
It is simpler to consolidate your accounts. It is hard to figure out how well or how poorly your nest egg is performing if your retirement assets are spread across multiple accounts. If you decide to leave your account with your old job, have a plan in place to regularly monitor your old account.
It is a natural time to evaluate your retirement savings plan. “Set it and forget it” is not the best retirement savings strategy. A job change is a perfect time to look over your savings plans, consult with a financial advisor, and evaluate fund performance as well as review your contributions and potential company matches. Retirement plans are a major component of your future financial wellbeing so don’t neglect them!
It reduces stress. Disorganization causes financial stress and maintaining too many retirement accounts can add to that burden. Consolidating your retirement accounts can help you feel more on top of your financial situation.
While moving to your new job is a good thing, leaving your retirement account behind may or may not be. If you are in the middle of a job transition or just thought about an old account you have with a previous employer, give us a call. We would love to help you make the best decision given your situation.