Saturday Morning Meeting Follows the Rules

Author: 8th and Walton

The most recent episode of Saturday Morning Meeting looks at rules: rules of thumb, rules and regulations, and more.

David Lee of Mach 1 Financial Group shared tips for handling 401ks specifically for suppliers.

“The data shows that the typical supplier changes jobs every 2.5 years,” says Lee, “so that’s a unique opportunity to roll over their 401k.”

A 401k is an investment vehicle offered by employers. “You get to put part of your salary into that plan on a tax-deferred basis,” Lee explains. “When you change jobs… you can transfer it to an IRA, which gives you more control over the investments within that plan.”

Why not take your 401k with you to your new job?

  • You still have the limited investment options employers offer.
  • You won’t know what strategies will be unavailable to you until you have already taken it to your new company.

You should still participate in your new company’s 401k and take advantage of the opportunity to get matching funds from your employer, Lee recommends.

Gathering multiple 401ks from various former employers into one investment portfolio allows you to have more control and to make decisions based on full information. It’s also more convenient than having to keep up with a number of different 401ks through your various former employers.

Going with a financial adviser mitigates risk and gives you additional options that you might not know about if you try to roll over your 401k yourself.

Watch the whole episode above, and join us on Saturday afternoons at 6:30 on KNWA in Northwest Arkansas to see the show broadcast.



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