Today, people change jobs – heck, even careers – more often than at any time in history.
One fallout to all this increased job mobility is what we call “orphan IRAs.” Each time we change jobs or change companies there’s an IRA or 401(k) or 403(b) that may unintentionally get orphaned. We have every intention to do something with it – to move it to the new company plan or roll it over or otherwise attend to it – but we get busy. Life gets in the way and it’s not long before the account is left languishing.
We meet folks all the time who have accumulated seven… nine… even 12 or more old or orphaned IRA accounts – some they forgot they even had. Others admit, “I don’t even look at the statements anymore.” Not surprisingly, when we examine the performance, we find these accounts have been treading water for years, or worse, losing money.
Fortunately, it’s not a lost cause. Often we can convert these old or non-performing accounts into a personal pension plan that pays you a paycheck for life. In other words, you can turn “hope so” money into “know so” retirement income you cannot outlive. Often there’s a bonus up front, so there’s an instant performance improvement over the IRA. There’s also built-in downside protection so your principal can never go down.
There’s a right way and a wrong way to do the conversion. Done incorrectly, you’ll get socked with taxes and IRS penalties. Done correctly, you’ll have no taxes due, and no penalties or surrender charges. Just secure retirement income for the future. So it’s important you get proper advice.
If you have a current IRA, 401(k), 403(b), 457 or pension, Sage Financial Partners can create a comprehensive retirement plan to achieve your retirement goals. To request a free, no obligation review and learn more about rolling over your retirement account and the various options available, click here. Or call (973) 467-7979.
Click here to start a conversation about IRA and 401(k) Rollovers.
Secure retirement income and income for life refer to annuity guarantees that are backed by the financial strength and claims paying ability of the issuing insurance company and may be subject to caps, restrictions, fees and surrender charges as described in the annuity contract.