It's 2006: Do You Know Where Your Money Is?

 

Having to call your own misplaced cell phone and searching through the couch for lost car keys are events that happen all too frequently. But how often do you wonder where you've put all your retirement money?

 

Unfortunately, many investors find themselves in this situation. In fact, one-third of all people who have changed jobs leave their retirement plan balances with their former employers' plan providers, leaving the distinct possibility of having to search for the accounts at a later date.1

If you have multiple retirement accounts spread out among several former employers, you may want to consider consolidating the funds with an IRA rollover. By pooling the money into a single IRA, you may be able to manage the funds and track investment performance more easily.

Because IRAs typically offer more investment options than employer-sponsored retirement plans, you will have more control to choose investments according to your specific goals, time frame, and risk tolerance.

IRAs also have some estate planning advantages. If beneficiaries are named correctly in an IRA, they have the ability to draw down the account balance over their lifetimes while the balance can continue accumulating tax deferred, extending the legacy you've left behind.

Distributions from traditional IRAs and most employer-sponsored retirement plans are taxed as ordinary income. Withdrawals taken prior to age 59 may be subject to an additional 10 percent federal income tax penalty.

Call your financial advisor to discuss how an IRA rollover might benefit you. You're on your own with the cell phone and car keys.

1) The Wall Street Journal, March 28, 2005

 

Marc Wright is a Financial Consultant for AXA Advisor LLC. For more information,

log on to www.marcwright.net.



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