Life Events
Changing Jobs
A crossroads in your career could open a window to many investment opportunities. Whether you are leaving or changing jobs, there are many financial decisions to consider, for both your short- and long-term needs. It's important to note that leaving your job does not have to mean leaving your money.
The first thing to do is ensure that your life and health are insured. Then, you'll want to decide whether you should accept a lump sum or reinvest your former retirement plan. People who switch employers are often faced with a big decision: what to do with the money they have accumulated in their 401k-retirement plan? You can either start a new employer's plan, or you can move your eligible retirement fund left with a previous employer to your own individual Rollover IRA account and your money will continue to grow on a tax-deferred basis.
Choosing a rollover when leaving an employer has many advantages. It helps you build a more diversified portfolio because it gives you control of your investments and it reduces your risk of losing track of your money. A traditional IRA offers the possibility of tax deferment with earnings remaining sheltered from taxes until withdrawn. If you are not yet 59 ½ years old, a rollover IRA can also gives you the flexibility to take out your money and, although you may be subject to penalties, it only applies to the amount you pull out. With qualified distributions, such as medical expenses, death and disability, a rollover IRA can sometimes allow you to take out money without penalty.
Whatever road you decide to take, PNWFCU can help guide you along and make sure you're aware of the options available to you during such transitions. Our CFS Financial Advisor Aaron Brown, will evaluate the financial decisions you are facing and help you make the most out of your money. We invite you to email Aaron today for a complimentary consultation.
Portland 503.258.2658
Vancouver 360.693.7368 x2658
Hood River 541.387.4192 x2658
Outside local calling areas
1.800.444.5858 x2658
