| Switching your job? Retiring? Congratulations! A | | | | directly from the employer-sponsored plan to the |
| window of opportunity opens for you with the | | | | Rollover IRA account. This is called direct rollover. |
| Rollover Individual Retirement Account or Rollover | | | | With the indirect rollover alternative, you take the |
| IRA. In an era of corporate restructuring and | | | | distribution from the retirement plan and then |
| outsourcing, Rollover IRA is among the most | | | | deposit it in the Rollover IRA account. Unless |
| powerful means available for securing | | | | exceptions apply, you have 60 days to deposit |
| one’s retirement. Yet, its potential to | | | | the distribution and qualify for tax-free rollover. |
| enlarge one’s assets for the sunset years | | | | Boosting Your Rollover IRA Performance |
| commonly remains under-appreciated. | | | | You need a strategy to benefit from the wide |
| The Rollover IRA dramatically increases the range | | | | range of investment choices available in the |
| of choices available to you for investing your | | | | Rollover IRA. You can develop the strategy |
| retirement savings. By offering investment | | | | yourself or leverage ideas from investment |
| choices hitherto unavailable in employer-sponsored | | | | newsletters such as AlphaProfit Sector |
| plans such as 401k, 403b, or Section 457 plans, | | | | Investors’ Newsletter to enhance the |
| Rollover IRA provides you the means to have | | | | growth rate of your nest egg. |
| direct control of and more aggressively grow | | | | AlphaProfit’s Focus and Core model |
| your nest egg. | | | | portfolios have grown at an average annual rate |
| This article discusses the advantages of Rollover | | | | of 33% and 21% respectively, compared to an |
| IRA over employer-sponsored retirement plans. | | | | average annual return of 13% for the S&P |
| So, if you are leaving your job and have | | | | 500 Index from September 30, 2003 to March |
| accumulated assets in the employer-sponsored | | | | 31, 2006. |
| retirement plan, continue reading this article to | | | | Let’s say you transfer $50,000 from your |
| learn about your options and more. | | | | employer-sponsored retirement plan to the |
| Four Options | | | | Rollover IRA and the wider range of investment |
| You have four options on what you can do with | | | | choices helps you increase your annual return |
| your savings in your employer-sponsored plan | | | | from 8% in the former to 12% in the Rollover |
| when you are switching jobs or retiring. | | | | IRA. At the end of 20 years, your Rollover IRA |
| 1) Cash your savings. | | | | will be worth $482,315, more than double the |
| 2) Continue with the retirement plan of your | | | | $233,048 it would be worth had you stayed on |
| previous employer. | | | | with the employer-sponsored plan -- that too |
| 3) Transfer your savings into the retirement plan | | | | without any cash additions to your Rollover IRA. |
| sponsored by your new employer. | | | | Adding to Your Rollover IRA |
| 4) Set up a Rollover IRA account with a mutual | | | | You can leverage the potential of your Rollover |
| fund company and move your retirement savings | | | | IRA further by adding to it each time you change |
| into that account. | | | | jobs. With the Rollover IRA already setup, all you |
| Unless you have a pressing need, it is best not to | | | | have to do is to instruct the retirement plan |
| cash your retirement savings. First, cash | | | | administrator of your last employer to transfer |
| withdrawals from the retirement plan will be | | | | assets to the Rollover IRA. There is no limit on |
| subject to federal and state taxes. Second, your | | | | the amount of money you can transfer. |
| retirement savings diminish and you will have | | | | You may also add money to your Rollover IRA |
| fewer assets to grow tax-deferred. | | | | through regular annual contributions. They are |
| While the three other options will not erode your | | | | however subject to the annual limit for IRA |
| retirement savings and will allow it to grow | | | | contributions. |
| tax-deferred, they are not equal in their ability to | | | | Summary |
| help you boost its growth rate. | | | | When you are switching jobs or retiring, the |
| Increased Investment Choices | | | | Rollover IRA opens a window of opportunity for |
| Most employees earn meager returns on their | | | | you, widening the range of investment choices for |
| employer-sponsored retirement plan savings. A | | | | your retirement assets hitherto not available in |
| Dalbar study reports that the average 401k plan | | | | the employer-sponsored plan. The self-directed |
| investor achieved an annual return of just 3.5% | | | | Rollover IRA empowers you to construct and |
| during a 20-year period when the S&P 500 | | | | manage a mutual fund portfolio to boost the |
| returned 13.0% per year. | | | | growth rate of your retirement savings. |
| Part of the problem stems from the fact that | | | | Notes: This report is for information purposes |
| most retirement plans offer only a limited number | | | | only. Nothing herein should be construed as an |
| of investment choices. A Columbia University | | | | offer to buy or sell securities or to give individual |
| study finds the median number of mutual fund | | | | investment advice. This report does not have |
| choices in 401k plans to be just 13. The actual | | | | regard to the specific investment objectives, |
| number of equity mutual fund investment choices | | | | financial situation, and particular needs of any |
| however is less, since the median number includes | | | | specific person who may receive this report. The |
| money market funds, fixed income funds, and | | | | information contained in this report is obtained |
| balanced funds. | | | | from various sources believed to be accurate and |
| With fewer investment choices, | | | | is provided without warranties of any kind. |
| employer-sponsored plans limit your ability to take | | | | AlphaProfit Investments, LLC does not represent |
| advantage of different market trends and to | | | | that this information, including any third party |
| continually position your retirement savings in | | | | information, is accurate or complete and it should |
| mutual funds with superior risk-reward profiles. | | | | not be relied upon as such. AlphaProfit |
| If you set up a Rollover IRA with a large mutual | | | | Investments, LLC is not responsible for any |
| fund company such as Fidelity Investments, T. | | | | errors or omissions herein. Opinions expressed |
| Rowe Price or Vanguard Group, you will break the | | | | herein reflect the opinion of AlphaProfit |
| shackles imposed by your employer-sponsored | | | | Investments, LLC and are subject to change |
| plan and dramatically increase the number of | | | | without notice. AlphaProfit Investments, LLC |
| mutual funds available for investing your | | | | disclaims any liability for any direct or incidental |
| retirement savings. Fidelity, for example, provides | | | | loss incurred by applying any of the information in |
| access to several thousand mutual funds besides | | | | this report. The third-party trademarks or service |
| the more than 180 mutual funds it manages. | | | | marks appearing within this report are the |
| Setting-up the Rollover IRA | | | | property of their respective owners. All other |
| Let’s say you decide to move your | | | | trademarks appearing herein are the property of |
| retirement savings to a Rollover account with a | | | | AlphaProfit Investments, LLC. Owners and |
| mutual fund company. How do you make it | | | | employees of AlphaProfit Investments, LLC for |
| happen? | | | | their own accounts invest in the Fidelity Mutual |
| Contact the mutual fund company in which you | | | | Funds included in the AlphaProfit Core and Focus |
| wish to open an account and ask them to send | | | | model portfolios. AlphaProfit Investments, LLC |
| you their Rollover IRA kit. Complete the form for | | | | neither is associated with nor receives any |
| opening the Rollover IRA account and mail it to | | | | compensation from Fidelity Investments or other |
| the mutual fund company. Next, complete any | | | | mutual fund companies mentioned in this report. |
| forms required by the retirement plan | | | | Past performance is neither an indication of nor a |
| administrator of your previous employer and | | | | guarantee for future results. No part of this |
| request transfer of your assets into the Rollover | | | | document may be reproduced in any manner |
| IRA account. | | | | without written permission of AlphaProfit |
| You have two choices for moving your | | | | Investments, LLC. Copyright © 2006 AlphaProfit |
| retirement savings to your Rollover IRA account. | | | | Investments, LLC. All rights reserved. |
| One is to elect to have the money transferred | | | | |