Rollover a company tax-deferred plan at every opportunity

June 15, 2021

You should rollover a company tax-deferred plan (401K, 403b, 457b, etc.) to a traditional IRA at every opportunity.

A key to wealth management is often making sure you are using the best investment vehicles available to you. You should rollover a company tax-deferred plan (401K, 403b, 457b, etc.) to a traditional IRA at every opportunity. The sad thing is that many tax-deferred plans restrict the available funds to those with high expense ratios as well as the number and type of investments. You can minimize this negative effect by investment choices within and outside your tax-deferred plans to improve your overall wealth management program. In order to maximize flexibility, anytime you leave a job with a company tax-deferred plan, roll it over to an Iindividual Retirement Account (IRA)Do not roll it over to your new employer’s plan with another set of restrictions. Since it is your money, it might surprise you how difficult the plan you are transferring money from makes the process. They don’t care about you. They just want to keep their management fees. Take action to avoid the negative future performance.

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 DIY Wealth Tips, Investing, Wealth
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Author: Stanley Kon

Stanley J. Kon is Chairman of Ripsaw LLC where he oversees research, education, and product development. He also is the editor of the Journal of Fixed Income. Dr. Kon has written extensively in the areas of investment management, performance measurement, asset pricing, statistical models of stock returns and mortgage-backed securities. He has published articles in the Journal of Financial Economics, Journal of Finance, Journal of Business, Journal of Empirical Finance, Journal of Fixed Income and Financial Analysts Journal. He served as the J. B. Fuqua Visiting Professor of Finance at Duke University’s Fuqua School of Business where he taught courses in fixed income securities and risk management. He was also a Visiting Professor at New York University’s Stern School of Business where he received the Executive MBA outstanding teacher award. Prior to that, Stanley was a principal, executive vice-president, director of research and co-director of the investment management group at Smith Breeden Associates, Inc., an institutional investment management company. Prior to that, he was a Professor of Finance at the University of Michigan from 1982-1997. Prior to 1982, Professor Kon served on the faculties of New York University, the University of Chicago and the University of Wisconsin at Madison. Dr. Kon has also served on several bank and holding company boards and as a consultant to government, business and financial institutions. Dr. Kon received his BS in Chemical Engineering from the Lowell Technological Institute, his MBA in Finance and Economics from St. John’s University and his PhD in Finance from the State University of New York at Buffalo.

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