Ah, the ever-elusive 401(k). Much like the single sock that disappears in the laundry or that one Tupperware lid that has inexplicably vanished into the ether, those old 401(k)s from previous jobs have a knack for getting lost in the shuffle. Only difference? Misplacing them could cost you a beachfront retirement condo in Boca Raton.
Pyop Accounting, your financial management superhero, is here to help ensure that doesn’t happen. We’re all about baking smooth financial systems into the DNA of your business, and that extends to your retirement funds too. After all, your business’s job is to support you (as you support it), not to play hide-and-seek with your future financial stability.
So, why should you care about these straggler 401(k) accounts? Well, let me paint a picture for you. Imagine you and your friend both invest in the same mutual fund. You’ve got yours nestled in your former employer’s 401(k), while your friend has theirs in an Individual Retirement Account (IRA). A year later, you sit down over a glass of wine (or three) to compare statements. Surprise, surprise, your friend’s balance is higher than yours, even though you both invested the same amount in the same fund. Why? Those pesky administrative fees that you’re shouldering in your old employer’s plan.
But don’t lose heart! We have a solution: rollovers. No, not the dog trick, but something equally impressive. By rolling your old 401(k) into an IRA that you control, you can avoid those sneaky fees and retain more of your hard-earned cash. Plus, you’ll have the added benefit of being able to reallocate and access your funds more easily.
Think of it as financial Marie Kondo-ing: consolidating your retirement funds into one place, under your control, sparks some serious financial joy. Not to mention, it makes it way easier to ensure your investments align with your risk tolerance and aren’t just duplicates of each other.
So, what’s the moral of the story? Don’t let your 401(k)s become the lost socks of your financial laundry. Take control, consolidate, and watch your retirement funds grow. And remember, life is too short for low returns on big energy. Let Pyop Accounting help you maximize your earnings and make your studio a legitimate source of income and a worthy investment.
Like what you hear? Want to learn more about how to make your business work for you? Stay tuned for more insights from yours truly, your financial management superhero. Because nothing says “superhero” quite like helping you find lost money, am I right?
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Donna Bordeaux, CPA with PYOPAccounting.com
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.