My Company Has Been Bought Out. Now What?

Congratulations, your company has been acquired. The question now is, what is going to happen to my retirement benefits?

It is important to understand that there are opportunities for employees to take advantage of during this time of transition. In this article, LCM Capital Management will focus on retirement benefits and rollover opportunities that employees should consider when their company is bought out or merged.

The first step is to understand the retirement benefits you currently have with your company. This includes any 401(k) or pension plans, as well as any other retirement savings vehicles such as Restricted Stock Units (RSU) that your company may offer. An investment advisor can help you, at no cost, review your plan documents. Do not be afraid to ask your company's plan administrator to send those to you to ensure that you have a clear understanding of your benefits. After all, they are YOUR benefits.

In most cases when a company is bought out or merged, your retirement benefits are affected. For example, your 401k plan may be merged with the new company's plan, or it may be terminated. If your plan is terminated, you will need to decide what to do with your retirement savings such as rolling it over into an Individual Retirement Account (IRA).

A Registered Investment Advisory firm can help you determine the best strategy that meets YOUR needs, not theirs, and in many cases, rolling over into an IRA is the best choice.

Rolling over your retirement savings into an IRA can provide several benefits, including greater control over your investments and potentially lower fees. Additionally, rolling over your retirement plan savings versus taking the money for a vacation will help you avoid taxes and penalties that may apply if you withdraw the funds directly.

The importance in using and seeking professional advice from a Registered Investment Advisory firm when making decisions about your retirement savings is that as a fiduciary, we are obligated to put your interest ahead of ours. We will help you understand not only the implications of rolling over your retirement savings but help you determine the best course of action for your needs.

In summary, having your company bought out or merged with another can be a great thing but it can create some uncertainty around your retirement benefits and future employment. It is important to understand that there may be opportunities for you to take advantage of during this transition. By understanding your retirement benefits and your options, and seeking professional advice so you can make informed decisions about your retirement savings that will help you secure your financial future.