When you separate from an employer, you have the option to roll over the funds from your old 401(k) to an IRA. This flexibility means you don't have to stick to the investment profile or fee structure set out by your plan provider.
When you take a look at 401(k)s, you'll often find that many providers have:
- High fees - The fees charged by the average 401(k) provider are 3x that charged by Wealthsimple.
- Poor performance - 96% of actively managed 401(k) mutual funds underperform the market.
- Deceptive funds - Beware of target date funds and 401(k) providers who upsell their own funds to benefit themselves.
- Outdated technology - 401(k) providers are often bogged down with last-generation software that don't optimize for diversification and tax benefits automatically.
Bringing your 401(k) to an IRA with Wealthsimple gives you:
- Auto deposits and rebalancing
- Tax-loss harvesting
- Dividend reinvesting
- Personalized portfolio
- Human financial advice
We use a Nobel Prize-winning investment strategy designed to maximize your returns over the long run, combined with technology that reduces our costs, and a team trained to guide you through your financial milestones.
You can read more about the benefits of rolling over your 401(k) to an IRA with Wealthsimple here.
Finally, we will reimburse transfer fees on all rollovers. To get your reimbursement, simply send us a transaction record or statement showing your fees once they occur, and we'll reimburse this into your Wealthsimple account once your transfer is complete.