As much as we hate to admit it, it takes a while for most of us to settle into our career job. The direct path from college to career isn’t very common these days. Multiple studies, including one from the New York Fed, show that about 2 out of 3 of people end up in a career unrelated to their major. There’s a lot of learning, networking, moving and life changes that play into where you end up.

The phenomenon isn’t new: A BLS news release published in March 2015 found that younger baby boomers held an average of nearly 12 jobs from age 18 to 48.

With multiple jobs in life, it’s easy to collect a lot of “old” retirement accounts and end up with investments all over the place. Here are the 4 options you’ve got for those accounts with some considerations:

There are more details to be considered before a choice is made, but from a practicality standpoint, consolidating accounts into an IRA or your new company retirement plan usually makes the most sense. It allows you to keep contributing for retirement, manage your investments in one place and keep your contact information current on all of your money (vs changing it at every prior account).

Cashing out is, without a question, the most expensive option. There’s a mandatory 20% withholding for taxes, and an additional 10% penalty if you’re under age 59.5. Additionally, you lose the future growth potential if that money stayed invested.

We help people consolidate and manage their old retirement accounts. If you’ve got an old 401(k) and want to discuss planning and investing, you can call us at (530) 487-1777 or book an appointment online HERE.

www.bls.gov/news.release/pdf/nlsoy.pdf