There are many reasons to rollover a 401k to an IRA, but the simplest is no further than your newspaper or TV set. With the country facing the greatest economic crisis in decades, it is even more crucial than ever to insure that your retirement funds are safe and stable. Nothing can provide that kind of security better than an IRA.
When it comes to investing for your retirement there are many factors to consider, including how long you want to continue working, whether you need multiple retirement plans and what your level of investing experience is. These and other factors can help you to decide the best way to invest your money.
You may currently have a 401k which you feel is pretty healthy, but ask yourself this…are you really satisfied with the status quo or would you rather see your retirement funds grow? One of the best reasons to rollover a 401k to an IRA is to increase your funds. With IRA investments, you can see your funds nearly double or, depending on the strength of your investments, even increase beyond that. Try that with a 401k!
If you are like the average American, you will likely change jobs many times. Having your funds in an IRA allows you to easily move from one job to another without risking the destabilization of your funds. This way, you can enjoy the freedom to experience new job opportunities without having to worry about impacting your financial security.
Another of the main reasons to rollover a 401k to an IRA is to gain some control over your own finances. Unlike 401k’s, which are usually administered by a company or trustee, IRA’s can be self directed. This allows you to have a say in where and how your money is used and grown. You’re the one earning it, why shouldn’t you be able to control how it is invested?
With the economy currently in turmoil, it is more important than ever to find the safest and most profitable way to invest your money. While the stock market can go up and down, real estate doesn’t usually fluctuate all that much. By putting your funds in a self directed IRA, you can give yourself the option of investing in real estate and significantly increasing your rate of return.
Preparing for retirement can be a difficult prospect, more so in tough economic times, but it is something which none of us can afford to take lightly. Of all the reasons to rollover a 401k to an IRA, the most important is for peace of mind. You want to know that your money is working for you and providing a cushion for your future. That can’t happen if it’s standing pat in a company controlled 401k.
Investing in real estate can help your retirement funds increase and allow you to breathe a lot easier. So don’t take chances with your future, instead consider rolling your money over from your 401k to an IRA and put your future in your own hands.