At retirement, most people understand the benefits of initiating a direct rollover from their employer-sponsored retirement plan to an IRA Rollover. An IRA Rollover provides an excellent means to continue tax deferral of earnings until funds are withdrawn for retirement.

After deciding to establish an IRA Rollover, the next most important decision is the selection of an investment advisor. Unfortunately, most investors are "sold" IRA Rollovers. Very little information is received about fees, future investment performance, monitoring results and generally what to expect if market and client circumstances change.

If you already have an IRA Rollover and not sure if you selected the "best" investment provider, read on.

Investors with an Existing IRA Rollover
Q & A
Q. How do I know if I am paying too much in fees?
A. By asking the right questions. There is a good chance the salesperson did not fully disclose all fees you are paying.

For example, "direct fees" are obvious and can be reasonable. However, "indirect fees" (fees hidden within the investment fund) are less obvious. If you don't read the fine print or ask the right questions, you will not realize that most fees paid are being charged indirectly.

Q. How do I judge investment success or failure?

A. Often, it is difficult to determine if investment success or failure is due to overall market conditions or due to superior or inferior money management. Like it or not, an investor must take an active role and understand at least the basics of investing. Knowledge is power and the more you know the better you will be at judging investment performance.

Q. I don't feel safe with my IRA Rollover investments. What can I do to have more confidence that my funds are protected?

A. Several things:
  1. Empower yourself with the basics of investing.
  2. Ask good questions of your provider.
  3. Insist on clear and concise answers to your questions.
  4. Ask for full disclosure of all fees.
  5. Ask for a report of investment results at least twice per year.
Q. May I transfer my IRA Rollover from one provider (trustee) to another?

A. Yes, and the transfer process can be simple.

Still not sure if you selected the best provider? Call Northwest for a free, no-obligation audit of your IRA Rollover account. The audit will review your current provider's fees, performance, and investment results.

If you would like more information about IRA Rollovers, the free audit, or how you can transfer your existing IRA Rollover to Northwest, please call us at (814) 452-1000 or (814) 728-7062 or send us an email.