AboutLouis Schwarz, QFP, CFP®, RFC®. ChFEBC Expertise Over 36 years experience - discretionary investment management, advisory service, stocks, bonds, mutual funds, annuities, IRA, Roth, 403(b), 401k, tax planning, tax preparation, retirement planning, tax reduction, life insurances. I hold five professional designations: QFP, CFP, RFC, ChFEBC, and Paladin Registered Advisor with a professional rating of five stars.
Experience First deaf Certified Financial Planner licensee (http://www.cfpboard.org/), General Securities Registered Representative (Series 7), Registered Financial Consultant (http://www.iarfc.org/), Registered Investment Advisor, Qualified Financial Planner (http://www.iaqfp.org/), Admitted to Paladin Registry of Personal Financial Advisors (http://www.paladinregistry.com/); Chartered Federal Employee Benefits Consultant (http://www.chfebc.com/); Licensed Life, Health, & Disability Agent
Organizations Financial Planning Association, International Association of Registered Financial Consultants, National Association of Deaf, Alexander G. Bell Association of the Deaf, National Deaf Business Institute
Education/Credentials Gallaudet University, College for Financial Planning
Awards and Honors Who's Who in Finance and Industry, Who's Who in the World, NAD Flying Fingers Award, MDAD Distinguished Award, MCAD Business of Year, Montgomery (MD) County Business Award, 2007 Outstanding Business Person of the Year, Gallaudet University Department of Business
Question I recently changed companies and want to move my 401k to end paying additional administrative fees. I heard that rollovers actually cost a lot because you lose a lot during the liquidation of old account to buying of funds in the new account. A co-worker advised me to get an annuity. His annuity is indexed to the stock market but has a rider that captures the investment performance every five years so that the initial investment and the gain become the new adjusted value or floor in which the investment can't go below. I'm not even sure I understand all that jargon. What are the best options to grow my money without having to pay too many transition or maintenance fees? Basically, what is the best bang for my buck?
Please advise. Thank you so much!
Answer Hello, Judy
Yes, there is always an opportunity cost when moving money around and this opportunity cost may be worthwhile or may be the bad one.
I usually advise my clients to rollover their 401K to current 401K or to your own IRA account.
I usually recommend an annuity to those who have fear of running out of money and who do not feel comfortable with stocks, bonds and mutual funds - want an insurance to protect their hard-earned money.
