Do you have a 401(k)? Chances are your 401(k) is part of a program offered by your employer. If you are about to change employers, or if you've recently lost your job - an unfortunate fact of life these days, it seems - then you are probably wondering what to do with your 401(k) fund. If your employer allows you to participate in their 401(k) plan, and many employers will, you could always leave it where it is. You could also rollover your 401(k) into an Individual Retirement Account, or IRA as they are more typically referred to. When you roll over your 401(k) into an IRA, you will enjoy greater flexibility and have more diverse investment options.
Let's say you've been working at your company for the past 6 years, and have been participating their 401(k) plan the whole time. You have now built up a chunk of change. You've accepted another job, however, and are wondering what to do. You may decide to keep your money in your current 401(k) plan, or move it over to the 401(k) plan offered by your new employer. Or you might roll it over into an IRA. That may be the most appealing option for you since when you have your money in and IRA, you have more kinds of investments you can make. For example, with an IRA you can invest in individual stocks, bonds, or mutual funds that you just happen to like. You will probably have to evaluate your choices yourself, but at least you'll have the freedom to do so.
To learn more about rolling 401(k)s into IRAs for more diverse investment options, 401(k)s, IRAs, or any other long-term investment question, be sure to consult with a financial advisor. He or she can walk you through the pros and cons of all your potential investment instruments.
