Should You Transfer a $1 Million 401(k) to a Financial Advisor? Insights from Suze Orman

July 7, 2025 - 03:40

Transferring a $1 million 401(k) to a financial advisor might appear to be a beneficial decision, but personal finance expert Suze Orman highlights significant considerations that could impact early retirees. In a recent episode of her podcast, Orman addressed a listener's concern regarding the potential pitfalls of such a move.

The query originated from Jeff, whose husband had retired early at the age of 57. With over $1 million in their 401(k), Jeff and his husband faced a crucial decision: whether to roll over their retirement savings to a financial advisor. Orman cautioned that this decision could limit their access to early withdrawal options, which are critical for individuals who retire before the traditional retirement age.

Orman emphasized the importance of understanding the implications of a rollover, particularly how it could affect their financial flexibility. She advised listeners to thoroughly evaluate their options and consider whether retaining direct control over their retirement funds might be more advantageous in the long run.