I have consolidated everything into Schwab. No more vanguard, cd’s with a bunch of online banks. I’m a bit hesitant about having all my eggs in one basket but …..
My wife and I closed out 2 small inherited IRA’s. We had several mutual funds in the name of diversity in our non retirement account. Over the last several years we have sold all except our muni fund. All the proceeds from the sales went into the muni. Our IRA’s now have only one fund each.
Here are my two biggest: 1) I took my pension as an annuity rather than a lump sum. 2) I left my 401(k) with my former employer.
I will have an ongoing relationship with my old company for the rest of my life as it is the custodian for the bulk of my wealth. I’m sure some would bristle at that, but I have no issue.
Ken – as long as your former employer isn’t hitting you with large fees and the fund selection is reasonable, there’s not a compelling reason to change. My former employer started charging a quarterly fee while I was still working, and often changed available funds, so I rolled my 401(k) into a Schwab IRA. Once you are old enough you may want to transfer to an IRA so you can use QCDs for charitable contributions.
I implemented my company 401k back in 1982 and I had an emotional attachment. Over the years I negotiated with the unions for a higher company match in exchange for all plan expenses being paid by the trust.
After I retired they implemented a new charge on inactive accounts. That meant those retired were paying for expenses of the plan twice. I had enough and transferred to Fidelity just on principle.
I have consolidated everything into Schwab. No more vanguard, cd’s with a bunch of online banks. I’m a bit hesitant about having all my eggs in one basket but …..
My wife and I closed out 2 small inherited IRA’s. We had several mutual funds in the name of diversity in our non retirement account. Over the last several years we have sold all except our muni fund. All the proceeds from the sales went into the muni. Our IRA’s now have only one fund each.
Here are my two biggest:
1) I took my pension as an annuity rather than a lump sum.
2) I left my 401(k) with my former employer.
I will have an ongoing relationship with my old company for the rest of my life as it is the custodian for the bulk of my wealth. I’m sure some would bristle at that, but I have no issue.
Ken – as long as your former employer isn’t hitting you with large fees and the fund selection is reasonable, there’s not a compelling reason to change. My former employer started charging a quarterly fee while I was still working, and often changed available funds, so I rolled my 401(k) into a Schwab IRA. Once you are old enough you may want to transfer to an IRA so you can use QCDs for charitable contributions.
I implemented my company 401k back in 1982 and I had an emotional attachment. Over the years I negotiated with the unions for a higher company match in exchange for all plan expenses being paid by the trust.
After I retired they implemented a new charge on inactive accounts. That meant those retired were paying for expenses of the plan twice. I had enough and transferred to Fidelity just on principle.