Smart Move: Streamline Your Retirement Plans
March 14, 2025 | TS Prosperity Group
If you have ever made a career change, then you may have an old retirement plan lying dormant. In fact, the average tenue of an American employee is 4.6 years1, which means that by the time a person reaches the age of 45, they will have made six career changes! That equates to, on average, up to six old 401(k)s, IRAs, or other retirement accounts that could long be ignored or forgotten. While it might not seem like a big deal, consolidating those accounts can have significant impacts on your financial plan that can lead to maximizing your wealth for the future.
Here are five reasons why consolidating your old retirement accounts is a smart move:
Simplified management
Keeping track of multiple retirement accounts can be a chore. Communication from different providers, managing different statements, and leveraging different investment options can lead to confusion and inefficiency. According to a study by Capitalize2, there are approximately 29.2 million forgotten 401(k) accounts in the U.S., representing nearly $1.65 trillion in lost assets. By consolidating your accounts, you gain clarity, with one statement and one team to track your progress and adjust your strategy as needed.
Improved investment strategy
When your retirement savings are spread across multiple accounts, you may have an uncoordinated investment strategy. Typically, each account is going to have its own investment structure nor have insight into your entire holistic portfolio. This may expose you to unnecessary risk. Consolidation allows you to align your investments with your long-term financial goals to ensure a balanced and strategic approach to your plan.
Lower fees and costs
Most retirement plans, especially employer-sponsored ones, come with maintenance fees, administrative costs, and investment expenses. Having multiple accounts means you could be paying redundant fees. Consolidating your accounts can reduce costs and those savings can be reinvested into your financial future.
Easier Required Minimum Distributions (RMDs)
For retirees, RMDs can be complex when managing multiple accounts. The IRS estimates that nearly 60% of retirees make errors in calculating RMDs, potentially leading to penalties. Consolidating your accounts simplifies the RMD process, helping to comply with IRS rules while optimizing your withdrawal strategy.
Stronger estate planning
If something happens to you, your loved ones will have a much easier time managing your estate if your retirement assets are consolidated. Fewer accounts mean less paperwork and a more straightforward process for beneficiaries to access funds. And if your financial planner has ensured that your account has designated beneficiaries, these funds can often bypass the lengthy and costly probate process, saving your heirs even more money on their inheritance.
At TS Prosperity Group, we believe that smart financial planning includes optimizing your retirement assets to work efficiently and effectively for you. Our team of experienced professionals will analyze your retirement accounts, assess your investment strategy, and with our fiduciary guidance, create a tailored plan that aligns with your long-term goals.
Whether you are nearing retirement or just beginning to think about optimizing your portfolio by consolidating your old retirement accounts, we’re able to help you plan for every stage of life. Contact TS Prosperity Group today to take the next step toward a more streamlined and strategic retirement plan.
Ready to make a smart move and maximize your wealth? Let’s start the conversation.
Investment products offered by TS Prosperity Group are: Not a Deposit • Not FDIC Insured • Not Insured by any Federal Government Agency • Not Guaranteed by the Bank • May Go Down in Value.
1Economic News Release from the Bureau of Labor Statistics
2True Cost of Forgotten 401(k) Accounts Whitepaper from the Capitalize research team