401K Rollover to an IRA
If you are not Warren Buffett (approx. 6 billion to 1 chance) and if you live in the USA then you may be interested in learning about 401k rollovers.
What is a 401k rollover and how will it affect your retirement investing .
A 401k rollover is a plan for people who wish to "rollover" their retirement investing plan into a new Individual Retirement Account (IRA).
This usually occurs when you change job or retire and you want to have greater control over how your retirement savings are invested.
If you leave a job and have a 401k account, you can decide whether you want a lump sum, whether to keep the funds with your old employer or whether to arrange a 401k rollover to an IRA.
The IRA is an account that holds future investments for you, i.e. stocks, bonds, annuities etc....
The advantages are that you avoid immediate tax liabilities, and retain your money which earns tax-deferred income in your retirement plan.
This all sounds very prudent to me and the sort of long-term thinking the Oracle of Omaha would appreicate.
Homte : Warren Buffett