Episode #100: What Should I Do With My Old 401k?

This podcast is the second in the series called the Royer/Kennedy Tapes where Nick Royer and Emmy Award Winning TV News Anchor Erin Kennedy will explore everything financial and everything retirement. In this episode, they discuss what you should do with your old 401k. 

41% of people, from 2014-2016, cashed out at least part of their 401k when leaving a job, and 85% of those people drained the balance entirely! And since most people will change jobs several times before retiring, Nick with Group 10 Financial and Erin Kennedy are breaking down the best (and worst!) options when it comes to your old 401(k): 

1. Cash it out 

2. Leave it with your old employer. 

3. Roll your old 401k into your new employer's plan 

4. Roll your 401k into an IRA Cashing out your old 401(k) is rarely the best option. Not only will you be hit with a heavy tax penalty, you're also greatly reducing any future compound interest.

 

Listen now to find out what you should and shouldn’t do with your 401k!