According to a recent study, the average person changes their job 10-15 times during his/her career, many of them spending 5 years or fewer at most of them. Are you one of the many?

When it comes to switching jobs - it is important to not forget about your 401k. Luckily, you have a few options. Remember, it's best to avoid "cashing out" your 401k, as there are excess taxes and penalties of 10% for doing so - not to mention, the damage it may do to your retirement savings goals.

We recommend you consider one of the following options as an alternative. 

• Keep your 401k where it currently is
  Pros:
  - If you have online access, you should still be able to manage your investments
  - If a plan allows for lower cost options and better performance than your current 401(k), it may be advantageous to stay in that plan as long as possible.
  - Be sure to update your contact information (i.e. address and phone number changes) in case something changes
  Cons:
  - Your assets may be in a high cost platform, where your retirement assets are paying for a benefit that you no longer receive from that company
  Limited benefit and service may be a factor, sense you are no longer an employee
  
  

• Roll over your assets into an IRA and/or Roth IRA

  Pros:
  - Typically will allow you have more investment options
  - Often can lower overall cost of investments (but not always)
  - Provides the opportunity to work with a personal financial advisor to reach your retirement goals
  Cons:
  Possibly a little more work upfront to ensure that you are researching and evaluating the advice you are receiving, as well as tracking your contributions, investments, and fees – but this is well worth the work and attention – It is your money after all – and it’s important

   

• Roll over your assets into your new employer sponsored retirement plan

  Pros:
  - Ability to manage all of your retirement assets in one place
  - Possible ability to take loans against your 401(k) if needed (if allowed)
  - Possibly have the option to invest in a lower cost platform
  Cons:
  - Possibly limited and high-cost investment options
  - Depending on the company that the 401(k) is with, you may not have regular access to an advisor

 Every person's situation is unique so figuring out which option is right for you might not be easy. For a free 401k situation analysis and tips on best practices, contact Tyler at Pharmacy 401k by calling 843-873-4420 or email tyler@pharmacy401k.com. 

For more information on our custom approach and to discover your pharmacy's optimal plan, click here to download our company census tool or contact us by emailing tyler@pharmacy401k.com or call Tyler Campbell at 843-720-3756.