So you got laid off, or quit, or got canned. Either way, what did you do with your old 401k? Did you know leaving it with your old company could prove fatal to its very existence?
We have been recommending a book to our clients for years,
The Great 401k Hoax. In it, the author states some of the reasons that 401ks might not be all they are cracked up to be, especially if you have left the job that kept it for you. But, you might say, what do the authors of this book know about anything? How about this quote, directly from the book: "most Americans do not have the resources to ride out the bad markets of the kind that we believe will prevail for the next decade". Sound familiar? It should. As a side note, they wrote that before the market crashed in 2002.
A couple things you might not know about your 401k:
1. Your Company can borrower from it
2. It is not guaranteed
3. When you leave your old job, the top two things still apply!
What does this mean? Probably that you should look into rolling that thing over sooner rather than later. Give me a call and we can talk about your options.
Thanks! Joshua Tomeoni
