Retirement planning’s a bitch, but it’s also a necessity. Do you have an old 401k sitting around from your previous job? If you’re anything like me (lazy and a procrastinator), you do, and you’ve been wondering if you should cash it in, let it sit, or perhaps do something else.
Don’t be like me!
When I left my last job (over a year ago), I didn’t even know how much was in my 401k. So when I did get around to looking months after starting the new job, I was pretty pleased with the amount. 4 years can actually get you a good amount (not like enough to retire….at all). What wasn’t so cool? That money had been sitting, stagnant, for MONTHS! I missed out on months of retirement savings because I’m lazy. Maybe a few months doesn’t seem like a lot right now, but when I’m old and want to retire and don’t have as much as I’d like, I’ll be thinking back on all the times I could have saved or invested and didn’t.
There are plenty of options when it comes to your old 401k. I decided (remember, I’m lazy) to take the easiest path and move it to an IRA, using the same investment company my 401k was through already. It was an easy transfer. I could have also opened a new IRA or Roth IRA at my local bank and requested that the funds be moved there.
The transfer was quick and painless. And this is coming from a person who’s brain gets all mushy when trying to figure out things like investing and stocks and retirement savings plans.
The next thing on my list? Opening up my 401k at the new job (no judging, the site’s way less intuitive than at my last company and I need my mom’s help!).
**Disclaimer!! I am not a financial expert so obviously if you haven’t done ANY research on retirement stuff and are completely clueless and need help understanding things and deciding what to do, talk to a professional!