How Not To Pull Your Family Apart

“I get it,” says Nicole. “You need to focus on the present and that’s a lot! But retirement saving is part of a good plan. Let me pitch in. I’ll arrange a call for you and my advisor. He can at least let you know what your options are. Then, you can decide what works best for your family. It’s smart not to lose track of previously earned savings and investments.”

Nicole’s advisor texts Erik and they arrange a call. “Hello, Erik. My name is Joe. Your sister let me know that you have some questions about a 401(k) that you left at your previous employment. First, let me start by complimenting you for contributing to your 401(K) plan.”

“My understanding is that you and your wife are now using an online tool to keep yourselves up to date on where you’re spending money and what will be set aside for savings. That is a great first step in financial preparedness. I also understand that the immediate issue you want to discuss is whether you should move your 401(k) savings from a prior employment to an IRA account.”

“Here is how I suggest we approach this. We’ll review the underlying funds expense ratio plus the plan sponsor fees, investment options, etc. to determine if it’s more beneficial to rollover a 401(k) to an IRA or to keep the 401(k) with your previous employer.”

Joe meets with Erik and his wife to make sure they can articulate and understand their investment goals and risk tolerance before he makes a recommendation.