Cashing out your 401k can be tempting, but this could shortchange your financial future. If your current 401k offers only high fee funds or high administrative fees, the best move would be to rollover your 401k to a different investment.
Roth IRA vs Traditional IRA written in the notepad.
A 401k rollover may also be essential after you leave your job. A former employer may not accept to keep money stashed in their plans after a certain period. They may cash out your savings and issue a check with a ten percent early withdrawal fee, and with the taxes taken out. And, if they don’t cash it out, there might be better fund options and lower fees out there.
If the benefits of an individual retirement account outweigh those of the 401k for your specific situation, you should consider rolling over into an individual retirement account. While this can be exceptionally tedious, it’s benefits are apparent and undeniable.
Figuring out how to invest your money can be a daunting task. There’s certainly no shortage of information, but too much of it can be overwhelming. To help you out in this regard, here are some of the best online platforms to rollover your 401k:
- TD Ameritrade
With TD Ameritrade, you can find every asset class you are looking for. This particular platform gives you many mutual funds from which you can choose, and at least 13,000 fund offerings. You can start an IRA to use these funds. Alternatively, you can use your standard account.
What’s more, TD Ameritrade offers a wide range of account offerings, educational resources, diverse trading platforms, and many investment choices. If you’re still not sure how to rollover 401k to IRA, fret not as the platform offers a comprehensive guide on all the steps you need to take.
- E-Trade
Rolling over your savings to E-Trade can be a great idea, particularly if you’re looking for an online platform that only entails some basic research. E-Trade is a broker offering diverse investment choices, which is especially beneficial to new investors who do not have the skills to conduct their own research.
E-Trade offers professional-level trading platforms, a library of educational resources, and an array of tools to novice and experienced investors so that they can achieve a balanced and risk-appropriate portfolio. It’s also worth noting that E-Trade charges zero commission for all ETF, stock, and options trades.
- Fidelity
Fidelity is another excellent platform to roll over your retirement savings. The platform is exceptional in every aspect, but it is especially ideal for non-experienced investors and those looking for excellent customer service.
There are several reasons why Fidelity is considered among the best IRA plan providers. The platform has some of the lowest fees in the industry, as well as complimentary access to investment advisors to help investors plan and customize their portfolios.
As with Fidelity, E-Trade offers zero commission on stock trades, over 3500-plus mutual funds with no transaction fees, research, and a wide range of trading tools. E-Trade’s index funds also attract zero fees.
- Charles Schwab
Charles Schwab is a great broker whose strength in every category is apparent. Whether you’re a novice or an experienced investor, Charles Schwab will cater to your online support needs better than many other brokers. It offers top-notch research, $0-commission, and a robust investment platform inclusive of a broad selection of mutual funds, with no transaction fees and low to no minimums.
If you’re looking to use this platform, you can invest in exchange-traded funds (ETFs), certificates of deposits, stock bonds, options, and futures. With Charles Schwab, you can access 50-plus mutual funds, six fundamental ETFs, and its own 19 market-cap index ETFs. Besides, the platform gives you access to thousands of no-load mutual funds with no transaction fees, as well as 200-plus $0-commission ETFs from different companies.
- Merrill Edge
If you’re looking for a robust selection with a broad range of brokerage services, you might want to consider Merrill Edge. The platform is particularly ideal for investors who are already part of its parent company–the Bank of America.
Merrill Edge offers a broad range of brokerage services at discounted rates as they plan to join the ranks of platforms that are already offering $0-commission on many types of trades. Perhaps, its strongest attribute is the excellent in-house research it provides, as well as its super-responsive customer support. When you join this family, you can score other perks, such as bonus credit card rewards with the Bank of America.
Final Thoughts
The final balance in your retirement account is a function of the amount of money you invested, interest rate, and the length of the investment period. The best 401k investment for you is one that gives the highest returns based on your age, employer contribution, risk factors, and income. The good thing is that you can expand the options available for you through experience, education, and effort, while remaining confident in your decision.
