Managing multiple different investment accounts can be complex and tiresome. This article discusses the different options that people have to better manage their retirement accounts. They might consider doing what is called a “rollover” that involves transferring money from one account into another. The rollover is very similar to the consolidation which involves consolidating multiple 401(K)s into the current employer’s 401(K) plan. Creating an annuity can be an option for people who want to avoid what this article calls “market risks.” People might also consider Treasury inflation-protected securities (TIPS) if they are searching for a relatively high amount security without the harms of inflation. There are an increasing number of 401(K) plans that give people a self-directed option. Finally, this article discusses the difference between a traditional and Roth IRA.
See Tim Parker, Options for Your 401(K)s and IRAs, Investopedia, January 11, 2016.
