When you leave a job, it’s easy to forget a few things — a mug in the breakroom, an umbrella, maybe even a plant on the windowsill. But there’s one item that often gets left behind that can have a much bigger impact: your 401(k). In my experience, it’s more common than most people realize.
After a few job changes over the years, many individuals wind up with multiple retirement accounts sitting at past employers. And while the money may still be invested, these accounts are often overlooked. Here are three reasons it may be worth reviewing any retirement plans you’ve left behind.
1. Visibility and Control Matter
An old 401(k) often comes with limited investment options — ones you may not have chosen if you were starting from scratch today. Fees can vary, and without an easy way to monitor performance, these accounts may drift out of alignment with your long-term strategy. When your financial picture is spread across multiple custodians or institutions, it can be harder to see the big picture and make informed decisions. It’s important to know where all your retirement assets are and position them to work together.
2. It’s Not Just About What You Earn — It’s About What You Keep
As you move closer to retirement, how and when you draw from your accounts becomes just as important as how much you’ve saved. Accounts that aren’t coordinated with the rest of your financial plan may not be optimized for taxes, risk, or future income needs. That can cost you money on unnecessary taxes. There’s no one-size-fits-all answer, but consolidating accounts — or at least understanding your options — can help you make more intentional choices down the road.
3. Don’t Let Beneficiary Designations Create Problems Later
One of the most overlooked issues we see is outdated or missing beneficiary information. These designations are legally binding and can override your will or trust — yet many people haven’t looked at them in years. Checking old accounts for accuracy now can help prevent unintended consequences later, particularly when it comes to estate planning and transferring assets to loved ones.
A Simple Review Can Go a Long Way
If you’ve changed jobs, now it might be a good time to revisit the accounts you’ve left behind. Even if everything is working just fine, knowing where things stand can bring you more peace of mind about your retirement future.
If you’re not sure where to start, a qualified financial professional can help you review your options and answer questions based on your specific situation. We want you to have peace in the present because you are prepared for your future.
Since 2003, Keith Leverentz and The Life Group have helped individuals, families, and businesses navigate retirement with clear, big-picture financial planning. Outside of the office, he and his family enjoy serving at church and camping together. You can visit their website at TheLifeGroupllc.com.
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