Retirement planning is a crucial aspect of our lives, and it often holds the key to a comfortable and secure future. In Boston, Clark Howard, the Consumer Advisor, emphasizes the importance of finding and utilizing that extra money to enhance our current retirement plans. Millions of Americans unknowingly leave behind 401(k) accounts when changing jobs, making it easy to lose track of valuable funds. Wes Moss, a certified financial adviser, suggests taking proactive steps to bring that money with you and make it work for your wallet.Best Ways to Locate Old Accounts
Searching your inbox is one of the most effective ways to find old 401(k) accounts, as Moss advises. By conducting a simple email search for anything related to your company or 401(k), you can uncover valuable leads. Additionally, the Department of Labor's abandoned plan search and the National Registry of Unclaimed Retirement Benefits are useful resources. These tools can help you locate funds that may have been forgotten over the years.Why Withdrawing is a Bad Idea
Taking a withdrawal from your 401(k) can have significant financial consequences. For example, an employee making $60,000 per year who withdraws $35,000 will only receive just under $24,000 after taxes and fees. This is a substantial loss compared to leaving the money invested. By leaving the funds in the account, they have the potential to grow significantly over time. In fact, the same $35,000 left invested can grow to nearly a quarter million, providing a much better return on investment.Options for Moving the Money
Once you have located your old 401(k) funds, you have several options. You can move the money into your new plan or an existing Roth IRA. This allows you to consolidate your retirement funds and make them work more efficiently. Sydney Bennett, a graduate student from Chicago, was delighted to discover this option and take control of her retirement savings. By moving her funds, she is on track to build a more secure future.The Importance of Saving for Retirement
Saving for retirement is a personal responsibility that we must take seriously. As Clark Howard emphasizes, it is up to each of us to save money for our future. By saving a dime of every dollar we make, we can make significant progress towards our retirement goals. It is important to start early and be consistent with our savings efforts. Even small amounts saved regularly can add up over time and provide a comfortable retirement.Download the FREE Boston 25 News app for breaking news alerts. Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW©2024 Cox Media Group
