Time To Combine Your k Plans

Time to Combine Your k Plans

Summary: Time to Combine Your k Plans

Article Body: is the twenty fifth year of the k investment plan. Have you had more than one job in the last years? If so, then you probably have more than one k plan floating around.

k plans are now over years old. They seemed a unique idea at first, but now just about every employer offers one. And Im sure I dont need to tell you that they are a great way to save and earn money over the years.

The issue here is whenever you setup a k, you usually diversify your plan with your employer. Obviously, you must invest using the current options your employer offers, which is good. Investing a little in the high risk, some in the moderate risk, and some in the lower risk funds its typically the plan. You may have been a little more open on taking risk years ago than you are today. Maybe now you are a little more conservative in your investment goals. So you think you are diversified, right?

Not really especially if you have ten plans with ten different employers. Remember you tried to diversify each one when you set them up. Well, ten different plans diversified the same way means that your portfolio is not really diversified at all. One employers moderate risk program may be another employers low risk plan. Your k years ago where you invested in tech stocks was probably a high risk option. Now some of those high tech stocks are the most conservative investments.

The only way to manage your multiple k plans effectively is to combine them into one plan, under one investment portfolio and review it at least annually. One of the great things about k plans is they are transferable. The important thing is not ever to close a k and reinvest it, this is a taxable event. You can easily transfer your old k plans into an existing or a new k so you can manage your risk.

This is one time when everything under one umbrella is the way to go.