Ensuring a Worry-Free Rollover of Your Retirement Savings Assets

The average American worker stays at a job only 4.2 years. Many had funded retirement accounts they’ve left with the employer’s plan custodian when they moved to a new job. Leaving retirement savings at multiple employers can create higher investment costs to keep the account in former employer plans or create an inconvenience to maintain and rebalance. 

This drawback may lead investors to consider rolling over their retirement savings plans or other investments to another advisor to manage or to a new fund custodian. Many times your new advisor will assist you with the transfer paperwork, but what can you do before completing the Transfer Initiation Form (TIF) to understand the process and help ensure a ‘worry-free rollover’?

Check with the custodian

  1. Check with the custodian of the account regardless of the type of account you have to see if a rollover is even possible. Any fees associated with the ‘outgoing transfer’, the time the account has been open, should be considered. If you’re still employed and your assets are in your employer plan, and you want to move them to another advisor or custodian to manage, additional rules may apply.

Ask for all retirement savings transfer out paperwork

  1. Ask for all transfer out paperwork from the custodian and if other signatures or a ‘signature medallion stamp’ will be required on the paperwork to complete the transfer. Signature Medallion stamps guarantee the account. However, your financial institution or new fund company may be able to provide the medallion stamp for you. 

Include the account statement

  1. Include the account statement with your transfer paperwork that includes your name and address, the account number(s), and is dated in the last six months.

Realize that you have options

  1. As always realize that you have options where you transfer your account and the type of investments available to you.  Above all discuss these options with your advisor.  

Understand the fees associated

  1. Understand the fees associated with moving your money to a new account. Your advisor will explain the charges to you during the rollover initiation meeting. In addition, you review the TIF form and associated paperwork.

Be patient.

  1. Be patient. Some fund custodians process their TIFs very slowly. Ask your financial advisor to keep in touch with you regarding the progress of the transfer. If your transfer was not completed or you weren’t informed, check-in with your advisor.

In conclusion, if you have retirement savings at multiple employers or advisors, I can help you manage your assets in one place. We can also help navigate the transfer process for you. Having an active role in financial planning includes bringing assets together. This allows you more investment choices and on-going monitoring. In addition to not leaving them where you can’t actively manage them.

Additional Disclosure: These are the opinions of the author and not necessarily those of the Registered Investment Adviser or Broker/Dealer. They are for informational purposes only. Do not be construe or act upon these opinions as individualized investment advice.

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In addition, First Choice Financial Services specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard as you did saving it. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!

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