What could I gain from rolling over a 401(k) into an IRA while already in retirement?

I am retired from a large corporation after 30+ years. I have a 401(k) plus a rollover IRA from a pension buyout by my former employer. Both accounts are with Fidelity because this was the investment company my employer utilized. My current Fidelity advisor is pushing me to roll the 401(k), which is with them, to the IRA which is also with them. Is there a compelling reason I should do it?

Retirement, 401(k), IRAs
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April 2017
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The answer may depend on the investment choices you have in your 401(k) versus what you could invest in in your IRA. Possibly, your 401(k) only offers high fee funds or investment strategies that do not conform to your financial goals. Additionally, managing your overall asset allocation may be easier if your assets are consolidated in one account. When you have to start taking required minimum distributions from your retirement accounts at age 70 ½, it could be administratively easier if all of your retirement assets are in one account.

You should consider how the advisor you are working with is paid. Does the advisor receive a commission for selling you specific products or is the advisor using an asset-based fee structure? Under either scenario, it is likely that the more dollars you place under the advisors control, the more dollars he or she will earn. This is simply another factor you should consider when making your decision. Your best bet is to ask the advisor why they are making the recommendation and then evaluate the response. Even if the advisor has the potential to earn more if you place additional assets under his or her control, it may end up benefiting you more in the long run to consolidate your accounts.

April 2017
April 2017
April 2017
April 2017