4 Questions to Ask About Your Old 401(k)

If you've changed jobs recently (or even not so recently), you might have a 401(k) retirement account from a previous employer that you haven't thought about in a while. But while those funds are collecting dust, they could still be subject to fees – and there are several other considerations you’ll want to keep in mind.

Your retirement savings represent years of hard work. Make sure they're positioned for optimal growth by asking yourself these four key questions about your old 401(k).

1: What Are You Really Paying in Fees?

Many people are surprised to learn just how much fees can impact their long-term retirement savings. Your old 401(k) provider might be charging:

• Administrative fees for managing the account
• Investment fees for the specific funds you're invested in
• Transaction fees for any changes or rebalancing
• Additional service fees that might not be immediately obvious

Even a small difference in fees can significantly impact your retirement savings over time. 

2: How Diverse Are Your Investment Options?

Your old 401(k) plan might limit your investment choices to a select menu of options. Ask yourself:

• Are the available investment options aligned with your current goals?
• Do you have access to the types of investments you want?
• Could you benefit from a wider range of investment choices?

Many employer-sponsored plans offer a limited selection of investments. Rolling over to an IRA could give you access to a broader range of investment options, potentially allowing for better diversification and more precise alignment with your investment strategy.

Open a Wealth Builder Account With Your 401(k) 

3: Are You Maximizing Growth Potential?

Take a close look at your account's performance. How have your investments performed compared to relevant benchmarks? Is your current investment mix aligned with your risk tolerance and timeline? Could a different investment strategy better serve your goals?

Remember, what worked for you years ago might not be the best approach now. As your life circumstances change, your investment strategy should evolve too.

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4: Would Consolidation Simplify Your Retirement Planning?

Managing multiple retirement accounts can be challenging. Consider:

- Do you regularly review and rebalance all your accounts?

- Are you maintaining appropriate asset allocation across all accounts?

- Could consolidating accounts give you a clearer picture of your retirement strategy?

Keeping all your retirement accounts in one place can make it easier to track your progress towards retirement goals and maintain appropriate asset allocation – so you get your entire retirement picture. It can also reduce paperwork and account management time and simplify required minimum distributions once you reach the age to take them. 

Consolidating your retirement accounts today is like a gift to your future self: setting you up for less retirement stress!

Next Steps

If you're wondering about any of these questions, Hills Bank’s Wealth Management team can help. We offer:

• Complimentary retirement account reviews
• Personalized rollover guidance
• Local, accessible expertise
• A transparent fee structure based on assets managed – not on commission
• Long-term partnership in your financial journey

 

Ready to Take Action?

Schedule a conversation with our team to review your current retirement accounts, discuss your options, and create a personalized strategy for your retirement savings. 

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Investment products are not a deposit, not FDIC insured, not insured by any federal government agency, carry no bank guarantee, and may go down in value.