What Do I Do With the 401(k) From My Old Job?

What Do I Do With the 401(k) From My Old Job?
Listen to how ordinary people built extraordinary wealth—and how you can too. You’ll learn how millionaires live on less than they make, avoid debt, invest, are disciplined and responsible! Featuring hosts from the Ramsey Network: Dave Ramsey, Ken Coleman, Christy Wright, Rachel Cruze, and John Delony.

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[caseybills]

Really enjoyed this video. I'm considering your advice, because thousands of dollars have been disappearing from my 401k due to soaring inflation, and my concern is where to safeguard and grow remaining cash about $500k+ for the next 2-3 years at no risk. I'd love to retire early and afford a life after retirement.

[Elliot-Ivan]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[PremSteve-ygde]

Recently, I've been pondering retirement, unsure if my 401(k) and IRA will provide a stable future. I've also put $800K into the stock market, encountering fluctuations with limited gains. i need an approach that will align with my risk tolerance and financial goals

[angelalaskodi]

I think Dave might have missed something here. I left a company and the representative of the 401K mailed me a check, full amount, in my name. I went to the bank and opened an IRA and deposited the check. At tax time, my CPA filed a form showing the roll over so I wouldn't be taxed 20%. It worked.

[TravelingTheWorld]

I had a 401k from a previous employer and I did a rollover. I had the check sent to me. But I had 60 days to send it to my current employer retirement management company ( TRowePrice ). It was actually really terrifying. Because it was a check of over $215, 000 and I was afraid of the IRS. So I overnighted express the check to TrowePrice.

[Aziz__]

Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. Compounding is the process of earning interest on your initial investment, as well as on the interest that investment earns. This means that over time, your investment can grow exponentially. So the earlier you start investing, the more time your investment has to grow through compounding

[mrjack]

I rolled over a previous 401k and cashed a stock-based pension fund to a IRA at Fidelity. Then put those funds into multiple index funds that average almost 10% growth in each year. Many companies are now offering Roth 401ks. If you have that option, I say take it. If you roll that over to a Roth IRA someday, it’s tax free. However, if you roll a traditional 401k or IRA into a Roth, you will have to pay taxes at that point before it goes into a Roth.

[jehuspirit]

You can go through a nightmare with this. ALWAYS take your money with you every time and do not wait. You can have an old 401K and they could move it to a new company. New company might say WHO ARE YOU? We don't know you. Can't get to a human. No way to gain access. They make you agree to paperless correspondence and then don't allow you to log in. You will be in limbo. Don't leave it one more day.

[shawnmichael.]

If you like the investments in your current 401k you can leave it. Consider expense ratio. Example: Vanguard Institutional shares, which a lot of 401k's use, is better than Admiral shares.

[JustinCase]

@4:17 "Does that all make sense in general?"
Caller after being overwhelmed: "yes sir it does"

[j.mney]

Roll your 401K to your new job or roll it to an IRA in your name. Don't cash it out unless you are past the retirement age. Don't pay that 10% penalty!

[joediamond]

I wish he would of discussed the rule of 55. As most people don’t realize they can access funds in a 401k if they quit or get fired WITHOUT a penalty. This woman was 58 and would have the ability to access funds prior to 59 1/2.

[saulgoodman]

Just keep it in there. They cannot force you to withdraw.
Or roll it over to your new 401k. So this way you pay no taxes, when you do retire.

[Cornholio]

This woman thought she would get unbiased advice. Instead, Dave wasted no time in doing a sales pitch to his "smartvestor pros". It's a simple question with a simple answer. All she needs to do is either keep the $ in the 401k or roll it over to a Trad. IRA with a low cost company like Vanguard.

[Lianne]

Just put it into a personal IRA, rollover you just dont touch it or have them send you a check. Then open an IRA at Fidelity, Vanguard, ETrade or wherever.
You dont need an investment guru. Invest that money in a S%P 500 ETF a Mid or Small cap ETF and call it a day

[ExequielSkidmore]

investing requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myself May I ask which investments are good?

[Slimbo_]

I’m 37 with $180k in my 401k I want to explore options, i don’t want to Rollover to my next company 401k I would like to purchase a property anything but to get the most out of my money legally.

[OliviaParker-rxni]

The increasing tax rate is the reason I rolled over my 401k to a ROTH. I wouldn't want to be paying taxes on current income on withdrawals made from my retirement account. I have been maxing out my 401k, 457b and Roth IRA for the past decade. Two incomes doing the same. Grinding down hard in my 20s-30s to let it ride into my 40s and beyond.

[livingunashamed]

To only have 85k in her 401k after 30yrs is scary!

[imdoc]

It depends on the company. I had a 401k through fidelity in my old job and the way they roll over is by sending you a check directly but paid to the new company where you are going to hold your new 401k or ira.