Financial & Estate Planning

Are You Getting the Most Out of Your 401(k)?

Are You Getting the Most Out of Your 401(k)?

We often encounter 401(k) and 403(b) accounts that have not been reviewed in quite some time. Investment options in these accounts change; as do markets, fund managers and risks. Making sure your accounts are properly diversified with the right mix of investments, can help you achieve your goals.

Here are a few different ways that Linscomb & Williams can help:

Many clients have old “orphan” 401(k) or IRA accounts scattered in a number of places.  If you need help with some house cleaning, we can assist you by rolling over an old 401(k) or other retirement account into a Fidelity or Schwab IRA rollover managed by L&W. This will help you simplify your finances and stay on top of these retirement assets.

  • If the funds are coming from a 401(k), 403(b) or other employer sponsored plan, you will likely have to initiate the transfer through the current plan administrator, as they will not accept Fidelity’s or Schwab’s transfer request. As we’ve done for many clients, we can coordinate a conference call with the plan administrator to help facilitate the rollover.
  • For an old IRA or IRA rollover, we can prepare and submit the paperwork to initiate the rollover.

Alternatively, you may still be working and contributing to a 401(k) or 403(b), but you would like help with investment selections or at least a second opinion. Our Investment Committee has created a specific process for helping clients review their investment options. To get started, we need the following:

  • Recent statement showing account balances and current investments;
  • Complete list of investment options with corresponding ticker symbols.

Another alternative is that you may have the option for Linscomb & Williams to directly manage your employer sponsored retirement accounts. For company retirement accounts administered by Fidelity or Schwab, there is often an option to set up a Self-Directed Brokerage Account as part of your employer’s retirement plan that gives you access to a much broader range of investments, including individual stocks, individual bonds, mutual funds and exchange traded funds.  Here are the key steps involved:

  • Through Fidelity or Schwab, we can help you open such a brokerage account.  Schwab calls their version a “Personal Choice” Account.  Fidelity calls their version a “Brokerage-link” account.
  • Once open, the monies held in your 401(k) or other employer sponsored account are transferred into this new account.
  • At that point, we can begin managing the 401(k) in conjunction with your overall investment policy and strategy.
  • When future contributions are made to your 401(k), they can add to your new brokerage account, and we will invest them accordingly.

If you retire or leave your current employer, the 401(k) brokerage account monies can be rolled into an IRA.