How many retirement plans and accounts do you currently have? Are you sure? It's easy to lose track, especially if you have changed jobs or opened IRAs in tax seasons only to have forgotten about them later. Knowing the location and value of your retirement assets is an important part of retirement planning. To simplify your efforts, consider consolidating those assets with IRA rollovers.
Key Advantages
You may use the IRA rollover option to move funds from a qualified retirement plan or traditional IRA to another traditional IRA, or from one Roth IRA to another Roth IRA, with no current tax consequences.
Consolidating your accounts makes it easier to keep track of retirement balances, contributions and investment performance. You'll receive fewer statements for easier record keeping and possibly pay less in annual account fees. With your assets pooled together, you may adjust your investment strategy more easily.
Investment Flexibility
Unlike many retirement options, including 401k's and 403b's, IRA's offer more choices in the types of investments available. 401k's, for example are limited to a selected group of mutual funds that the employer and the retirement plan administrator have chosen. Once that 401k is rolled over to an IRA, the investor may chose from individual equities, bonds, annuities, Unit investment trusts, and many other commonly traded securities as well as a much larger universe of mutual funds. Careful attention needs to be made to the suitability and risks involved before investing in any of the investments mentioned above.
Proven Strategies for Success
IRA's and most other tax deferred investment vehicles should be seen as long term investments due to their intended use of supplementing one's retirement income over a long period. It is for this reason that some proven and simple strategies should be employed.
Max out IRA and employer based plans. These amounts vary, based on the type of plan, and most plans allow for catch-up contributions for people over 50.
Automate IRA contributions. This has two benefits. One is, it lessens the burden of paying a lump sum by paying smaller regular amounts. Second, is the ability to average out the purchase of chosen investments, by buying less shares when the market is high, and more shares when the market is low.
Starting early. Those people that contribute at an early age and continue to do so through their working lives stand a better chance of retirement success than those that wait.
Put a Rollover in Motion
To track down your retirement assets, review your tax records and contact previous employers. For information about IRA rollovers contact us. We can help you put the IRA rollover wheels in motion and assist you with other retirement planning needs.
Christian Nagle is a Financial Advisor at Morgan Stanley Smith Barney located in Carlsbad California and may be reached at (760) 602-3506 or [email protected] or www.fa.smithbarney.com/christiannagle.
Morgan Stanley Smith Barney LLC and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
Key Advantages
You may use the IRA rollover option to move funds from a qualified retirement plan or traditional IRA to another traditional IRA, or from one Roth IRA to another Roth IRA, with no current tax consequences.
Consolidating your accounts makes it easier to keep track of retirement balances, contributions and investment performance. You'll receive fewer statements for easier record keeping and possibly pay less in annual account fees. With your assets pooled together, you may adjust your investment strategy more easily.
Investment Flexibility
Unlike many retirement options, including 401k's and 403b's, IRA's offer more choices in the types of investments available. 401k's, for example are limited to a selected group of mutual funds that the employer and the retirement plan administrator have chosen. Once that 401k is rolled over to an IRA, the investor may chose from individual equities, bonds, annuities, Unit investment trusts, and many other commonly traded securities as well as a much larger universe of mutual funds. Careful attention needs to be made to the suitability and risks involved before investing in any of the investments mentioned above.
Proven Strategies for Success
IRA's and most other tax deferred investment vehicles should be seen as long term investments due to their intended use of supplementing one's retirement income over a long period. It is for this reason that some proven and simple strategies should be employed.
Max out IRA and employer based plans. These amounts vary, based on the type of plan, and most plans allow for catch-up contributions for people over 50.
Automate IRA contributions. This has two benefits. One is, it lessens the burden of paying a lump sum by paying smaller regular amounts. Second, is the ability to average out the purchase of chosen investments, by buying less shares when the market is high, and more shares when the market is low.
Starting early. Those people that contribute at an early age and continue to do so through their working lives stand a better chance of retirement success than those that wait.
Put a Rollover in Motion
To track down your retirement assets, review your tax records and contact previous employers. For information about IRA rollovers contact us. We can help you put the IRA rollover wheels in motion and assist you with other retirement planning needs.
Christian Nagle is a Financial Advisor at Morgan Stanley Smith Barney located in Carlsbad California and may be reached at (760) 602-3506 or [email protected] or www.fa.smithbarney.com/christiannagle.
Morgan Stanley Smith Barney LLC and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.