Why An IRA Investment ?
Generally speaking, people in the United States are most familiar with the 401k investment plan for retirement savings. The 401k is a time-tested option that has served many investors well over a period of many years. However, there are limitations to the 401k that can make it highly unattractive in certain investment situations. Likewise, just about everyone has heard at least one 401k horror story that can make an alternative option seem very attractive.
There are alternatives: One of the most popular of these is the Individual Retirement Account, or IRA. The IRA provides many of the tax-shielding benefits offered by the traditional 401k plan while including additional options and flexibility that can help investors cultivate wealth even as they protect their assets.
Many investors may be under the mistaken impression that once they have a corporate 401k or other employer-linked retirement account, it’s their only option in terms of long-term retirement planning. However, there are other options: Since 2006, the law has provided investors with the chance to “rollover” their 401k or other qualifying investment into an IRA.
What is a Rollover? Why Choose an IRA?
When you decide to engage in a rollover , you transfer the assets from your existing retirement account to a new account: In this case, from a 401k to an IRA. When you do so, the value of the transferred assets is shielded from taxation and you gain the added benefits of an IRA.
The IRA offers a range of flexible options that can make it more attractive than a 401k for many investors. While there are many different types of IRAs, many of them share the same basic benefits that modern investors are looking for.
Among these benefits are:
1. The ability to invest in stocks, bonds, annuities, mutual funds and many more securities.
2. The ability to invest in some alternative investment plans such as some commodities.
3. The ability to impact the schedule of required distributions according to your needs.
4. The ability to more easily plan for inheritance by non-spouse beneficiaries.
Growing Wealth With an IRA
An IRA might provide more options for building wealth than a standard 401k. Since an IRA does not include all of the restrictions of a 401k, including the heavy tax burden that might be associated with early distributions from certain 401k plans, it can be easier to leverage the IRA to work on your behalf as you approach retirement.
Wealth management is a very complex topic, and you should not make the decision to rollover a 401k into an IRA on the basis of any one factor. However, it can be useful to understand the many types of IRA rollovers that can be available.
- Conduit IRA
- Direct Rollover & Indirect Rollovers
- Beneficiary Rollovers
Conduit IRA: Unlike other types of IRAs and traditional employee-linked retirement plans, the Conduit IRA provides expanded bankruptcy protection for investors who hold more than $1 million in total assets within their retirement accounts.
Direct & Indirect Rollovers: Direct Rollovers are used in cases where investors would like to avoid mandatory IRS withholding, which typically amounts to 20%. On the other hand, Indirect Rollovers allow greater freedom in choosing the investment vehicles that work for you, and they can allow you to receive payments prior to age 59.5.
Beneficiary Rollovers: These include Spousal and Non-Spousal Beneficiary Rollovers, and are used to help ensure that the beneficiaries of your choice will be able to access the assets of your retirement account without punitive tax burdens.
The First Step to Enjoying the Wealth-Growing Benefits of the IRA
To enjoy the benefits of an IRA, it is first necessary to initiate a rollover, moving your retirement assets to an IRA account. Although this used to be a complex process, it can now be undertaken quickly and easily using the services of a qualified expert.
Although an IRA is an attractive retirement option, it is not always the best choice.
401k plans are not as versatile as IRAs, but like any investment plan, individual 401k plans can outperform the market. Choosing to roll over “hard-working” retirement assets into an IRA may make it more difficult to replicate an investment formula that is performing well.
401k plans may sometimes have other benefits that work well with an individual investor’s overall retirement plan. Before making the decision to roll over to an IRA, it is best to consult with a fully qualified, licensed financial advisor.
Our company is recognized nationwide as foremost experts in the 401k to IRA rollover. We can advise you on every aspect of pre-planning, understanding options, and deciding whether an IRA fits into your retirement planning strategy.
Expertise You Can Trust in 401k to IRA Rollovers
It is always a good idea to leverage the knowledge of respected experts when you are making a major financial decision. The decision to engage in rollover is one that can impact your finances for the rest of your life and have a major effect on your beneficiaries.
With all that in mind, it’s crucial that you select advisors that you can rely on:
- We use only licensed, professional financial advisors who have a demonstrated commitment to providing the best personalized financial advice. Our advisors are knowledgeable, personable, and able to relate the latest information on IRA and 401k investments to your specific needs. There are no “one size fits all” answers when it comes to financial peace of mind.
- We have a reputation you can trust. Our business operates in all 50 states and we have helped people achieve their financial goals in every one. Just as each 401k and IRA plan can be different, conditions in each state may have an impact on what investment decision is right for you. Our advisors can help you maximize your gains from coast to coast throughout the U.S.
- We are the client education specialists! Unlike some other financial advisory firms, we believe it is important to make sure that you are in control of your financial decisions from beginning to end. Our staff is trained to help you every step of the way by giving you the tools that you need to make your own informed decisions.
- We are the rollover professionals. Because we focus on issues surrounding the rollover process, we are able to help you understand all your options and their potential implications. We support you every step of the way no matter which of our services you need - or don’t need. And we’re willing to prove it like no other firm.
Consider Our Free 401k Evaluation to Meet Your Needs
Would you like to enjoy the benefit of our experience with no obligation? Fill out our simple web form and you can get a free 401k evaluation from one of our experts. When you fill out the form, your one-on-one consultation will be scheduled right away.
Your financial information and situation will be reviewed by our team and you’ll have the chance to address questions and concerns about the rollover process. Of course, your personal information is treated with the strictest confidentiality.
Whether you decide to work with us or not, we want to make sure that you have every avenue open to you when it comes to your financial goals. If you choose to go forward with a rollover, we will be able to move forward with the process. If you choose not to, then you are under no obligation and we wish you well.
Once you see the difference our knowledge and commitment to quality service can make, we are confident you’ll join our customers around the United States in using our company for the best in rollover-related investment planning. Get in touch with us now and secure the financial future you want and the peace of mind you deserve.