Consolidating 401 k accounts
Lastly, most firms give customers a better deal for having more assets in their accounts.The better deal could come from lower fees, lower commission rates or additional free services. 401k Plans are expensive due to excessive fees – In addition to the fees charged by the underlying funds in a 401k plan, there is usually an administrative fee charged as a percent of assets.When the assets are spread around in several 401k plans, you have a hard time monitoring your portfolio and making sure you are not overweight in one asset class.
You only have to remember one website login and password to change investment choices.
Having the assets at one provider makes it easier to build a diversified portfolio.
They are more diligent in monitoring the account and the underlying investments.
They are faster to make changes when things are not going well.
If you want to remain in mutual funds, you’ll be able to select a fund with reasonable expenses.