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When I was in college, we had daily chapel services. On rainy mornings, I’d dutifully bring my umbrella. But if the sun came out by the time chapel ended, I’d often forget my umbrella in the umbrella racks. Inevitably, I’d realize my mistake when it started raining again—sometimes weeks later, leaving me scrambling to wonder where I last left it, and then retrieving it at our campus bookstore. What seemed like a small oversight often turned into a bigger inconvenience.
For many Americans, forgetting about a 401(k) account when changing jobs is not unlike leaving an umbrella behind. It’s easy to move on without thinking about it, but retrieving and reintegrating it later can be complicated — and potentially costly. The statistics are eye-opening: as of May 2023, there were over 29 million forgotten 401(k) accounts worth more than $1.6 trillion, according to Capitalize. That’s up from 24.3 million accounts and $1.35 trillion just two years prior. These forgotten accounts now represent 25% of all 401(k) assets, leaving a significant portion of retirement savings potentially underutilized or mismanaged. Ignoring your 401k or 403b costing you more than you think.
So what’s the solution? At Intelligent Investing, we believe in the importance of taking every piece of your financial puzzle into consideration, including any retirement plans left with former employers. Here’s how we can help:
Managing 401(k)s While You’re Still Working
If you’re currently employed and contributing to a new 401(k), it’s crucial to consider how your former accounts align with your overall financial strategy. Forgotten accounts could lead to unnecessary risks, overlapping investments, or missed opportunities for diversification. We’ll help analyze your existing plans, ensuring they work together in harmony with your other investments.
Rolling Over and Consolidating Accounts
Leaving your old 401(k) with a former employer might seem convenient, but it’s not always the best choice. Lack of ongoing professional management could mean your investments aren’t optimized. Rolling over your 401(k) into a new plan or an IRA provides potential opportunities to:
- Simplify your financial life by consolidating accounts.
- Gain access to more diverse investment options.
- Optimizing your risk management.
Our team can guide you through the process of transferring funds, ensuring the rollover is seamless and avoids any unnecessary tax penalties.
Comprehensive Portfolio Management
Retirement accounts are just one part of your financial picture. Integrating your forgotten 401(k)s into a comprehensive portfolio can help maximize returns while aligning with your financial goals. Our proprietary financial software, Intelligrations®, intelligently integrates your 401(k) with other assets to ensure a holistic view of your finances.
Why It Matters
Failing to manage forgotten 401(k) accounts can lead to unintended consequences, such as:
- Increased portfolio risk.
- Redundant or underperforming investments.
- Missed opportunities to grow your wealth.
But taking action now can pave the way for a more secure retirement. And the good news? You don’t have to navigate this alone.
Take the Next Step
Don’t let forgotten accounts derail your financial journey. Download our complimentary e-book, Is Your Portfolio on Track, and start taking control of your retirement savings today. Click here to access the e-book.
Just like remembering to pick up an umbrella before it’s too late, managing your forgotten 401(k) accounts now can save you from financial headaches down the road. Let us help ensure every dollar you’ve earned is working hard for your future. Click here to get started.
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