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I realized that I have multiple retirement accounts from past employers. They each have some money in them, but I suspect they'll never really increase much because I'm not putting any new money into them. I think they are beholden to the performance of whatever those dollars were invested in. Is that a correct assumption?

I'm beginning to think that I'm doing this wrong.

Appreciate any advice.

allnightgrocery
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1 Answers1

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You have several potential options:

  • Roll over from your previous employer sponsored retirement accounts to an IRA
  • Roll over from your previous employer sponsored retirement accounts to your current employer sponsored retirement account
  • Leave things as they are
  • Withdraw some money (may involve significant taxes and potentially early withdrawal penalties)

Your considerations should be:

  • Investment options - IRAs are usually the least restricted
  • Investment costs - employer sponsored plans may negotiate lower expense ratio and customized investment options that may not otherwise be available to you
  • Plan costs - check what you're paying for the privilege of participating in the plan. Often, once the employer leaves, the plan starts charging fees that the employer pays for the current employees.

There's no one right answer. You'll need to check what is available to you and what is important to you, and make a decision.

Worth reminding that the money in these plans is supposed to be invested. So if you have never actually given any investment instructions and the money sits somewhere since being contributed - you may not be using it as intended and missing out on some investment returns.

littleadv
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