Could it happen to you? Tips to protect your 401K - WNCN: News, Weather

Could it happen to you? Tips to protect your 401K

Posted: Updated:
ST PETERSBURG, FL (WFLA) -

While you can’t control the health of your company, there are some things you can do to protect your investments if you take part in a 401K plan.

While 401K funds are generally protected in something like a company bankruptcy, they may be unavailable for months – or longer – which can leave them vulnerable to the markets and unreachable to individuals for a period of time.

Paula Albertson, CEO of Albertson Financial Group, says one way to protect yourself is to move your funds if you move jobs – not leaving your money at an employer you’re no longer connected to – and also avoid consolidating it all in your new employer’s 401K plan.

If you move all the money into your new 401K, “I call that a mistake because you’ve lost control,” she said.

As you age, you may also have opportunities to withdraw some money from a 401K plan and roll it into another plan. For many plans you can do that at age 59 1/2 , she said.

If you have concerns about the health of the company where you’re working, you might want to consider halting your contribution to that 401K and instead directing regular contributions to a self-directed IRA, she said. Even though you may lose company matching dollars (if your employer offers them), you may be able to find other financial incentives and retain control.

In addition, Albertson recommends creating an emergency fund outside of your 401K that can be accessed in the event of something like a job loss.

Copyright 2014 WFLA. All rights reserved.



  • Don't Miss ItMore>>

  • Baby cakes: 'Smash' trend taking 1-year-old parties by storm

    Baby cakes: 'Smash' trend taking 1-year-old parties by storm

    Tuesday, July 22 2014 7:23 PM EDT2014-07-22 23:23:30 GMT
    Legions of parents have embraced the smash cake, a birthday party feature in which brand-new 1-year-olds are served cakes to destroy — adorably — in front of friends and family.
    Legions of parents have embraced the smash cake, a birthday party feature in which brand-new 1-year-olds are served cakes to destroy — adorably — in front of friends and family.
  • RECALL: Fruit at Trader Joe's & Costco

    RECALL: Fruit at Trader Joe's & Costco

    Tuesday, July 22 2014 5:45 PM EDT2014-07-22 21:45:14 GMT
    A Central California company has issued a voluntary nationwide recall of specific lots of its fresh peaches, plums, nectarines and pluots over concerns of possible listeria contamination.
    A Central California company has issued a voluntary nationwide recall of specific lots of its fresh peaches, plums, nectarines and pluots over concerns of possible listeria contamination.
  • 4 - 5,000 attend Snooty's 66th birthday bash

    4 - 5,000 attend Snooty's 66th birthday bash

    Tuesday, July 22 2014 5:03 PM EDT2014-07-22 21:03:55 GMT
    Snooty’s 66th birthday “cake”  was made from cabbage, strawberries, pineapple, sweet potatoes and beets. South Florida Museum photoSnooty’s 66th birthday “cake” was made from cabbage, strawberries, pineapple, sweet potatoes and beets. South Florida Museum photo
    Imagine 4,000 people coming to your birthday party. That's about how many people showed up to celebrate the 66th birthday of Tampa Bay's beloved Snooty the manatee. 
    Imagine 4,000 people coming to your birthday party. That's about how many people showed up to celebrate the 66th birthday of Tampa Bay's beloved Snooty the manatee. 
  • Most Viewed Stories on WFLA.com

  • Sign up for WFLA News Channel 8 Email Alerts

    * denotes required fields






    Thank you for signing up! You will receive a confirmation email shortly.
Powered by WorldNow

1205 Front St., Raleigh
N.C., 27609

Telephone: 919.836.1717
Fax: 919.836.1687
Email: newstips@wncn.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.