When rolling over your 401(k) is the wrong move

You're susceptible to scammers

Rolling over your money might expose you to bad actors.

Bloomberg recently reported that investment brokers have been cold-calling workers of large companies like AT&T, Hewlett-Packard and UPS to convince them to roll over 401(k) balances into IRAs.

The brokers earn big commissions when they convince their new clients to purchase particular investments within their IRAs.

Unlike a financial adviser, who has a legal duty to act in the client’s best interest,  brokers are required only to recommend "suitable" investments for their clients, a requirement that leaves plenty of room for conflicts of interest.

Bloomberg found that some of these workers had lost hundreds of thousands of dollars in the risky investments brokers sold them, and dozens of clients have filed complaints with regulators.

Ignore sales pitches to roll over your 401(k). If you want to move your money, initiate the transaction yourself through a reputable major brokerage. Then, choose your own plain vanilla, commission-free, low-fee investments, like an S&P 500 exchange-traded fund and a total bond market ETF.