The Ask: What do I do with the money in my 401 (k) plan when I change  employment?


To answer this question we can create a hypothetical scenario where a prospect/client is about to change their employment which is, actually a very real scenario for all of us during our employment years. Changing the job is stress by itself but when you need to think about all ensuing consequences like managing retirement money it can become unbearable. So, the natural question for anyone would be “What do I do with the money in my 401 (k) plan?”.


The Problem: How do I explain the process of rollovers in the simple terms?


The burning question of money management often pushes a person to seek professional advice. The financial adviser is a person to go to who can assist with the 401 (k) rollover process. However, we are all very cautious and skeptical when it comes down to our money, especially those we worked so hard to save for retirement. So, how does the adviser explain the process while demonstrating the benefit of doing it with his assistance? He can do it by having a transparent process that can be easily explained by words and infographics. To recommend a rollover that is in a client’s best interest, you first need to completely understand the client’s personal circumstances to make a proper recommendation. This includes knowing about their complete financial situation, employment, current portfolio/retirement plan options, etc.


The Solution: RegBI Optimizer can be a solution to use.


For adviser to be convincing and helpful a proper tool is necessary in order to make a proper comparison of the current fees in the client’s current portfolio and what they would look like after rolling over. This includes both fund management fees and any advisor fees. It’s crucial for the client to have the complete picture on their investment expense when deciding to roll over. Besides the ability to compare the fees, the adviser should engage a client in the process by narrowing down on the potential investment options based on the financial goals, risk appetite, years to retirement, etc. Those important questions can be answered with the RegBI Optimizer. RegBI Optimizer creates a comprehensive best interest report that will analyze investment fees, plan fees, advisory fees, benchmarking, risk tolerance and more! RegBI Optimizer has built-in rollover wizard which takes in information about the original portfolio, information about proposed rollover portfolio, all associated fees with both portfolios, and other individual factors such as solvency & credit protection, RMD requirements, risk tolerance questionnaire, etc. The result of this process is the infographic report with which it is easy to explain the benefit of the rollover.

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