Last year, 50.5 million people quit their jobs, continuing a trend that began in the early months of the COVID-19 pandemic. As individuals move more fluidly from job to job, company to company, they scatter financial assets—including 401(K)s—in their wake.
From a financial planning perspective, it sometimes makes sense for certain individuals within certain asset classes to diversify their asset management. For other people, though, consolidating assets enables greater transparency and facilitates better management.
“When we meet with clients, we sometimes find they have assets in various places,” explains K&B Operations & Client Service Coordinator Nicole Wilson. “They may have an old 401(K) here, another old 401(K) somewhere else, and various investment accounts in different places. Consolidating all these assets in one place can make it much easier for the client.”
Why consolidate assets?
The first benefit of consolidation? Visibility. “We’ve seen clients, especially younger clients, who have perhaps set up their own investment accounts, and who’ve had several jobs and several retirement accounts, and sometimes they don’t even know how those accounts are invested,” says K&B Partner Yasmeen Mock. “It’s helpful for them to bring things together, so they can see and manage the whole picture.”
We assist clients as they examine their assets and determine their full landscape. We offer advice on investing 401(K)s, exploring retirement account rollovers, and discussing the various pros and cons of different investment vehicles. While we’re always happy to move their assets to our firm, we’ll always give guidance on how best to invest the asset—no matter its location.
From our vantage point, it’s important to ensure that each asset a client has—whatever its size—is doing its best to fit into the broader picture of that client’s financial plan. We’re dedicated to helping our clients live their best financial lives, and that means something a little different for each and every client. For example, we may find that a client’s 401(K) is invested in such a way that it does not align with their risk tolerance, short- and long-term goals, and overarching Money Mind. The honest conversations we have with our clients help us assist them in reviewing, consolidating, and revising investments as appropriate.
Here to help
We encourage all our clients to take a look at their asset landscape—and allow us to help. “Let us take a look at your assets relative to what we know about your needs and goals,” says Yasmeen. “We can help you take it from there.”