1. Performance
Has your portfolio been lagging behind the markets for years? Investors often get complacent and settle for mediocre returns in the often mistaken belief that eventually things will get better. Also, even astute investors will occasionally make poor investment choices and hang on to inferior portfolios. If you have questions about your performance, now is the time to reevaluate and get a second opinion.
2. Change in Employment
You may have changed employers or recently became unemployed, leaving your employer-sponsored 401(k) or 403(b) in limbo. If you let it sit, you won’t know what’s going on, or can easily forget about it. The last thing you want to do is leave any money on the table. Another option would be cashing in the investment, but there’s a chance you could incur large penalties. One option to consider is rolling it over into another employer-sponsored plan or transferring it to an IRA. This way, you can monitor things to avoid any additional penalties.
3. You Want Direct Access
Working with one person not only gives you direct access, but you may get a clearer sense of what is going on and where your investments stand. If you have a number of investments in different places, getting them all together under one umbrella may be beneficial.
4. You’re Getting Older
As retirement age looms, you want to make sure you have everything in order so you can make the required minimum distributions when you have to. If your investments are spread out, you can easily mix accounts or forget which ones need those distributions.
5. You Need Balance
Your investment portfolio may consist of diverse assets. You want to make sure everything is allocated properly and working to your benefit. If you have specific goals, having things in one place to monitor and rebalance those investments if needed will work to your benefit. Additionally, if you have a number of accounts in a variety of places, things can get confusing and hard to keep track of.
If the current manager you deal with neglects to provide viable options to grow your money or sound advice that works to your benefit, chances are you have outgrown this manager and may get the hands-on approach you desire with another resource. The key to deciding whether moving your investments is a good idea is to gauge how you feel.
The second factor should be whether or not you’re receiving the service you need. Although it may be a challenge to get all your accounts moved under one umbrella, once you get it done, you may feel a little better, see things a little clearer, and have the insight to make informed decisions. The most important thing to remember: a financial manager should be able to assist in providing the information needed to start making those changes without upsetting your portfolio.
This content is developed from sources believed to be providing accurate information, and provided by the Wealth Strategies Group and Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult financial, legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
