Professional Management for Your Workplace Retirement Account — Without Leaving Your Job

For many employees, a 401(k) or 403(b) eventually becomes one of their largest financial assets.

But there's an interesting disconnect.

You may have a financial advisor helping you manage your IRA, brokerage account, retirement income strategy, Social Security decisions, and overall financial plan—while one of your largest accounts is still sitting in your employer's retirement plan largely being managed by you.

Many people assume there is nothing they can do about that until they retire or leave their employer.

That isn't necessarily true.

Depending on the features available through your employer's retirement plan, it may be possible to receive professional investment management for your workplace retirement account while you're still working and without rolling the account into an IRA.

The Money Can Stay in Your Employer's Plan

This is an important distinction.

We're not talking about taking money out of your 401(k) or 403(b) while you're working.

We're also not suggesting that everyone should roll their workplace retirement account into an IRA.

Instead, where the employer's plan permits it, an advisor may be able to help manage the investments available within the existing retirement plan.

The assets remain in the workplace retirement account.

That means an employee may be able to benefit from professional guidance without waiting until retirement or changing employers.

Why This Can Become More Important After Age 50

Early in your career, retirement investing may seem relatively straightforward: contribute consistently, take advantage of an employer match when available, and invest for long-term growth.

As retirement gets closer, the questions tend to become more complicated.

How much risk should you take?
Are you overly concentrated in one investment, asset class, or company stock?
Should you become more conservative?
Are you diversified appropriately?
How does your workplace account fit with your spouse's retirement accounts?
When should you begin Social Security?
How much income will you need from your investments?
What happens to your retirement plan if the market falls significantly just before you retire?

These aren't simply investment-selection questions. They're retirement-planning questions.