I Have an Existing 401(k) or 403(b) Account From a Previous Job

I've had several clients who have changed careers over the years and have more than one 401(k) or 403(b) account and left them sitting, not knowing exactly what to do with these accounts.

When they ask what they should do with them to protect them, it seems wise to me they should look at these issues: 

1. their current age (client, that is)
2. any termination or surrender fees associated with rolling them over 
3. the vesting period for matching funds should be complete and
4. the type these accounts are in: fixed, variable or indexed to the market

A good way to protect a variable account (meaning the values of these accounts fluctuate with the market) is to roll it over into an indexed account (where the gains to the market are reflected but no losses) and any fixed is usually leaving potential money on the table.

This is a good strategy if the indexed annuity you are rolling them all into has a GLIR (guaranteed lifetime income rider) attached to it. You may save a bundle in fees because the rider typically is small compared to a variable product and if you die early, your spouse gets the same benefit. That guaranteed lifetime income rider provides a very valuable feature--if you outlive the value of your annuity, it continues to pay for as long as you live. Nice.

Always up for a conversation about what your options are, feel free to email or call:

jnutting@myretirementguru.com
956-207-2486 (leave message and I will get back if I am with a client)