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  • Writer's pictureJacob Vernon

Everything You Need To Know About 401k Rollovers


How to rollover your 401k

Have you recently changed jobs, retired, or lost your job and need to rollover your 401k? If so, you are not alone. Millions of people have done this, and it’s easier than you may think. In this blog post, we will explain how to rollover a 401k and then how to invest the funds.


First, let's talk about what a 401k rollover is. When you leave a job, you may have the option to leave your 401k with your former employer, but you can also choose to roll it over into another retirement account, such as an IRA. This allows you to have a wider range of investment options, maintain more control over your investments, and keep your retirement savings in one place.


To begin the rollover process, you will need to contact your 401k plan administrator and request a distribution. You will then need to decide where to transfer the funds. You can choose to transfer the funds to an IRA or another employer-sponsored retirement plan. If you decide to transfer the funds to an IRA, you will need to open an account with a financial institution that offers IRA accounts, such as Charles Schwab.


Once you have completed the rollover, you can then begin to invest the funds. Investing in an IRA offers many benefits, including tax advantages and a wide range of investment options. You can choose to invest in stocks, bonds, exchange-traded funds, mutual funds, and other investments.


When deciding how to invest your funds, it is important to consider your goals, risk tolerance, and time horizon. If you are nearing retirement, you may want to choose more conservative investments. Investing in uncorrelated assets may help to diversify your portfolio while still achieving the returns you need.


In conclusion, rolling over a 401k can be a great way to take control of your retirement savings. By transferring your funds to an IRA and investing them wisely, you can set yourself up for a comfortable retirement. Just be sure to do your research and consult with a fiduciary investment advisor if needed to ensure that you make the best decisions for your situation.


If you need help rolling over your 401k and/or need an investment strategy for your funds contact VMG today for a free consultation!


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For more information on 401k rollovers check out this blog post by Investopedia


Jacob Vernon, Investment advisor representative at Vernon Management Group


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