Downsizing Often Requires Investment Decisions

What’s your definition of a bad day at work? You’re late, because the cat reset your alarm? You’re asked to stay late, when you had other plans? It’s Monday? These are nothing compared to learning that your company has been sold or merged with someone else. Or, worse yet, your company is being hit with the Big D – Downsizing. The uncertainty about one’s job that follows news of a merger or downsizing is stress enough. Often, decisions will follow that involve changes in retirement plan funds that could affect your entire future. Even if you keep your job, you might have to choose among new retirement plan offers or take your money out completely. If you wind up with a new employer, do you move old retirement funds to a personal IRA or simply rollover to the new company’s offerings? Many psychological studies tell us that rapid changes in our routine will cause stress. Most people don’t react well to stress, so they avoid it by avoiding change. For the same reason, they avoid making decisions, for a decision may cause a change - and we know what follows next. Many people simply sign the paperwork to transfer their money to the new company plan, because it takes very little thought or effort. Still, I’m sorry to tell you this cannot be taken so lightly. Otherwise, you will miss an opportunity not afforded many employees - the ability to control your own retirement dollars. I’m talking about being able to invest your re ...