Fred Reish Cautions Against Rollovers on Retirement Savings in MarketWatch

Benefits and executive compensation partner Fred Reish spoke with MarketWatch on the cautions against rolling over retirement savings.

He shared three questions that he advises retirement-plan participants to ask their financial adviser before authorizing a rollover:
-- Will you monitor the new investments after the initial recommendation?
-- What are your fees, and do you get any money or benefits from anyone other than me?
-- What do you think is the right investment strategy to help me meet my goals? Why do you think that?

"If the adviser doesn't give clear and comprehensible answers to these questions, that's a red flag," Reish said. For example, plan fiduciaries have an ongoing duty to monitor the plan's investments, so the answer to the first question should be a straightforward "yes."

"If the total cost of the proposal, which should include the adviser's compensation, is much higher than your existing plan's cost, make sure there are additional services that justify the difference," Reish noted. "Remember that an amount that seems small, say 0.5% or 1%, can add up to a lot of money over time."