Rolling Over a 401(k) into Social Investments

In the early stages of your career, you may have had the benefit of an employer-sponsored 401(k).  If you were really lucky, you may have even had contributions matched by an employer or two.  And while you were focused on climbing that ladder, your 401(k) sat idly in the background beginning the foundation of your future retirement accounts.

Now your focus is on planning for retirement.  It’s time to tune into those accounts and see how they’re faring.  You may be surprised to learn what you’re paying to hold on to them…and what your money is actually being invested into…

How to Rollover your 401(k) into an Impact Investing Account

Typically, rolling over your 401(k) means moving your retirement assets into a traditional individual retirement account, or IRA.  You can also roll over into a Roth IRA, but doing so may result in a large tax bill due to the fact that your original contributions were likely made on a tax-deferred basis and are subject to tax upon withdrawal.

When rolling over into a new impact investing account, there are a variety of social responsibility portfolios we offer to accommodate your social investing interests:

Made up of a variety of known environmentally conscious companies, our environmental portfolio incorporates those willing to rethink the status quo, addressing their long-term environmental impacts, and choosing to operate on an eco-first and eco-friendly basis.

Our human rights & diversity portfolio is comprised of those companies that have corporate policies and practices focusing on promoting a fair and equitable workplace. Many of these companies have won accolades and recognition for confronting issues with employees, customers, suppliers, and community interaction.

Our peace portfolio is the one that started it all for Invested Interests. The companies in our peace portfolio play a positive role in furthering peace on our place and limiting conflict.  While the methods vary, we invest in companies that have taken positive steps to limit the support of governments and regimes promoting violence.

Reasons to Consider a 401(k) Rollover

  • High Fees

There are no fees to roll over a 401(k) into a traditional or Roth IRA.  In fact, you’ll likely save money on management fees over the duration of your investments.  Left unmanaged, many 401(k) send up with high management and maintenance fees.  Investment opportunities and understanding have changed dramatically since the rise of online trading and robo-advisers.  While these two options still have their shortcomings, they did pave the way for more aggressive fee structuring.

  • Investments

Most traditional 401(k)s do not support ESG (economic, social, and governance) rated social investments.  Rather, most focus on the very large-scale businesses that are generally focused on revenue-focused, not socially responsible business practices.

When setting up your 401(k) you likely had a choice of a few mutual funds.  However, with an IRA, you have a full-selection of funds to choose from and can create a better long-term strategy based on risk management, ESG ratings, and your retirement goals.

  •  Consolidation

Former employers go out of business.  Their retirement options and advisors change.  Whenever you change positions, you always have the option of moving your account into a new employer’s 401(k) or to an IRA.  While you can sometimes leave it where it is, for most individuals, rolling over to an IRA is the best choice.

If you are like most Americans and change positions every few years, it may be time to gain control and oversight over all of your retirement accounts.  Diversification is powerful.  So is knowledge.  Especially when it comes to retirement planning.

Considering a 401(k) rollover? Reach out to us @