Page 13 - Talk of Tequesta - October '22

The Talk Of Tequesta, Page 13

financial focus

Should You Consolidate Retirement Accounts?

By Sally Sima Stahl

One of the rewards retirement plans with one provider, you can ensure you your local Edward Jones Financial Advisor, Edward
for working over several don’t lose track of your hard-earned money. Jones, Member SIPC.
decades is the ability • Ability to follow a unified strategy – With multiple Edward Jones is a licensed insurance producer in
to contribute to tax- retirement accounts, and different investment portfolios, all states and Washington, D.C., through Edward D.
advantaged retirement you might find it difficult to maintain a unified financial Jones & Co., L.P., and in California, New Mexico and
accounts, which can help strategy that’s appropriate for your goals and risk Massachusetts through Edward Jones Insurance Agency
provide needed income for tolerance. But once you’ve consolidated accounts with of California, L.L.C.; Edward Jones Insurance Agency of
you when you do retire. a single provider, you’ll find it easier to manage your New Mexico, L.L.C.; and Edward Jones Insurance Agency
As the years went by, you investment mix and to rebalance your portfolio as needed. of Massachusetts, L.L.C.
may well have accumulated The need to rebalance may become more important as you Edward Jones, its employees and financial advisors
several retirement accounts, near retirement because you may want to shift some of cannot provide tax advice. You should consult your
such as IRAs and 401(k)s or your assets into investments that aren’t as susceptible to qualified tax advisor regarding your situation.
similar employer-sponsored plans. But you might find it swings in the financial markets. Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
advantageous to consolidate these accounts with a single • Possible improvement in investment options – Often, 1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
provider. 401(k)s may have limited investment selection, so
Consolidating them can provide you with several consolidating accounts with a full-service firm may allow
potential benefits, including these: for a wider array of products and strategies. This broader
• Less confusion and clutter – If you have multiple exposure can potentially help you improve your overall
accounts in different locations, it may be difficult to keep retirement income strategies.
track of tax documents, statements, fees, disclosures and • Greater ease in calculating RMDs – Once you turn
other important information. Consolidating accounts 72, you will need to start taking withdrawals — called
could help provide clear, simplified account maintenance. required minimum distributions, or RMDs — from your
• Less likelihood of “lost accounts” – It may be hard traditional IRA and your 401(k) or similar plan. If you
to believe, but many people abandon their retirement don’t take out at least the minimal amount, which is based
accounts, leaving thousands of dollars behind and on your age and account balance, you could face a penalty.
unclaimed. If you have several accounts, with different providers,
In fact, at the end of 2021, there were nearly 25 million it could be cumbersome and difficult to calculate your
forgotten 401(k) accounts, worth about 20 percent of all RMDs — it will be much easier with all accounts under
401(k) assets, according to an estimate by Capitalize, a one roof.
financial services company that helps individuals roll over So, if you do have multiple retirement accounts, give
retirement plan assets into new accounts. It’s possible some thought to consolidating them. The consolidation
that employers can even move small, old accounts out process is not difficult, and the end result may save you
of their 401(k) plans and into an IRA on behalf of their time and hassles, while also helping you manage your
former employees, thus increasing the chances that savers retirement income more effectively.
will lose track of their money. By consolidating your This article was written by Edward Jones for use by

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