For four decades, patient savers able to grit their teeth through bubbles, crashes and geopolitical upheaval won the money game. But the formula of building a nest egg by rebalancing a standard mix of stocks and bonds isn’t going to work nearly as well as it has.
Thing with the process outlined is its if it all goes smoothly and it really glosses over the paperwork and followup needed. Its a pita and 20 min is never the amount of time it takes from me. Account fees are way worse than me than the fund fees as they are above and beyond and regardless of any gain or loss happening to your investments.
What paperwork do you need to fill out?
For me, it has really been just that. Here was my most recent process:
I’ve never bothered with 401k to 401k, so maybe that process is more complicated.
I mean I have not done it in 4 years or so but its call one you want to transfer from and one you are transfering to to see what their prefered method is. Sometimes it will conflict. Get the forms they ask you to use. fill them out and fax or if your lucky email them or if your really unlucky mail them. wait and check back and if your lucky it all goes through. if your unlucky find out something was not filled out right and have to redo it. Might have to fill out a change of name if your name is different on one of the things which is common because your workplace made the one and you made the other. Remember these are retirement accounts. I have no idea where you are with these typical super awesome low fee options and the ability to just phone it in. I have done this at least three times now and its never been my experience.
I wonder if it’s a difference in the industries we work in. My worst experience was with a small company (<50 people), which had crappy fees (like 0.80% for an S&P 500 fund), and my current company is mid/large (something like 3000 employees, and like 90% of that is in our mfg plants; 0.10% asset fee, and the funds I picked have <0.10% fees each). I’ve also done HSA trustee transfers and IRA rollovers at a variety of HSA orgs, and that has been relatively painless (in fact, I do an HSA trustee transfer about 4x/year).
If you pick a good custodian to receive your funds, you solve half the problem.
I mean I like my custodians and they never seem to be the pain in the but part. except for the name thing when it occurs. My worst one is one im stuck with from working at a public university where you have to continue with their person as there is a small, probably not worth it realy, health benefit that I lose if I move it out. So my account basically just shrinks slowly. Its like im paying some sort of long time insurance.