As an independent advisor, our loyalty is with our clients, not a large company, which provides flexibility in creating tailored plans for retirement.
Navigating rollover options
1. Navigating rollover options
We help clients compare their options when they leave an employer and need to move their retirement funds. This includes:
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Rolling over the funds to an IRA (an Individual Retirement Account).
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Transferring the funds to a new employer's retirement plan, if permitted.
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Evaluating whether to leave the funds with the former employer.
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Avoiding the costly mistake of cashing out the funds, which can trigger taxes and penalties.
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2. Streamlining the rollover process
We guide clients through the paperwork and procedural steps to ensure a smooth and correct rollover. This helps clients avoid common pitfalls, such as the mandatory 20% tax withholding that occurs with an indirect rollover. They can facilitate a direct rollover, in which the funds move straight from the old plan to the new account, to keep the process simple and tax-deferred.
3. Creating a customized investment strategy
Once the rollover is complete, we help clients invest their retirement assets according to their specific goals. Examples include:
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Diversifying investments: IRAs generally offer a broader range of investment choices than an employer's plan, and our advisors can help clients choose from a wider array of stocks, bonds, and funds.
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Managing risk: We work with clients to determine their risk tolerance and ensure their new investment strategy aligns with their comfort level.
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Consolidating accounts: For clients with multiple retirement accounts from various previous employers, we can help consolidate these funds into a single IRA to simplify management.
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4. Planning for the long term
We integrate the rollover into the client's broader financial plan. This allows them to:
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Assess how the consolidated retirement funds fit into a comprehensive, long-term strategy.
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Consider the implications of required minimum distributions (RMDs) and potential tax strategies, especially when rolling over to a Roth IRA.
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Continue to receive ongoing advice and portfolio analysis to ensure their investments remain aligned with their goals as they approach and enter retirement.