Q. Robert, I am planning on retiring at the end of December. My 401K that I have through work has been doing pretty well as of late. Do I have to rollover my 401K when I retire or can I leave it like it is? – William in High Point

A. William, you do not have to do anything with your 401K just because you retire. However, you should see a competent Financial Advisor to go over your options. Sometimes people see their 401K growing and think that the investment strategies inside the account are performing above average. Most people forget that they and/or their employer are still contributing to the 401K while they are working, so it should have growth.
Also, you can rollover your 401K into an IRA and leave everything just as it was. This could possibly save you some money in fees. However, I have always felt that retirement is a significant life change and your investments should reflect this change. We do a lot of 401K rollovers in December due to it being a popular month for people to retire. Most of the time we do tweak the investment strategies to something more suitable for retirees.

During this holiday season please remember those less fortunate than you. You can do so much to help those in need. Give a gift to the charities in your area that help to take care of those that cannot take care of themselves. I am sure anything will be appreciated including monetary donations, canned goods, or even your time as a volunteer.

Keep the questions coming at rdcooper@globalfinancialpc.com.
Call the office for a complimentary consultation at 336-993-2012.
Hope all have a blessed holiday!