Jan
08
2024

Happiest Places to Retire in the US in 2024: A SoFi Study

By | Budgeting & Goals, invest, Preparing for Retirement | Comments Off on Happiest Places to Retire in the US in 2024: A SoFi Study

Where you live can play a major role in how enjoyable your retirement is. So, where do the happiest retirees reside? To determine which cities in the U.S. are the happiest places to retire, we studied the 200 largest metropolitan statistical areas (MSAs) using the latest U.S. Census Bureau population estimates, and consulted multiple sources, including the Sharecare Community Well-Being Index, Tax Foundation, Walk Score, Sperling’s Best Places, and County Health Rankings & Roadmaps.

By identifying key elements that contribute to happiness — social networks, financials, and health — and examining 13 pivotal rankings within them, such as community, cost of living, and healthcare access, we created the Happiest Places to Retire in the U.S. in 2024. Read on to learn about the 20 best places to retire in the U.S. to help you explore your options for where to live in retirement.

Key Findings on Retirees’ Favorite Cities

•   Barnstable, MA is the happiest city to retire to, ranking #1 of all 200 cities we analyzed. It has the highest ranking overall for community well-being, and one of the highest percentages of residents who are 65-plus. The other cities at the top of the list: Naples, FL at #2, and Ann Arbor, MI at #3.

•   Colorado has the highest number of happiest cities for retirees on our top 20 list, beating out Florida. Boulder, CO is the #5 happiest city for retirees, and Fort Collins and Denver also made the list.

•   Colder climates are now attracting retirees. Three of our top 5 cities for retirement (Barnstable, MA; Ann Arbor, MI; and Boulder, CO) have average high winter temperatures in the 30s or 40s.

•   Naples, FL residents live the longest. The city has the highest average life expectancy (86.1 years) of all 200 cities we analyzed.

•   Ann Arbor, MI, has the lowest tax burden for retirees on our top 20 list, followed by Myrtle Beach and Charleston in South Carolina. Meanwhile, Akron, OH has the lowest cost of living of the top 20 cities for retirees, 80.8% of the U.S. average.

Top 20 Happiest Cities to Retire

Looking for information on the happiest places to live after retirement? Whether you dream of an ocean breeze or mountain views, you have plenty of cities to consider.

The top 20 happiest cities for retirees offer a broad range of activities, amenities, and resources. They’re also located all across the nation, as shown in this map of the top 10, so you can find a place in the part of the country you’d most like to live in.

Happiest Cities to Retire

1. Barnstable, MA

Coming in at the top of the happiest cities to retire in the U.S. list is Barnstable. Located on Cape Cod, its beachside beauty attracts retirees, making it one of the top three cities for residents 65 and up. While living here can be expensive (the median household income is $91,438) and there’s less access to healthcare than the other top contenders have, residents enjoy a high level of social interaction and plenty of entertainment and activities.

2. Naples, FL

Those who want to live by the water and enjoy warmer weather can head south to Naples. The cost of living in this city is fairly reasonable, and there’s no state personal income tax, which means your retirement savings can go a lot further. Naples also has the highest life expectancy (age 86.1) of all 200 cities we analyzed.

3. Ann Arbor, MI

Want to enjoy city life without the high prices? Ann Arbor, a college town, has plenty of big city amenities at an affordable price point. Another draw for retirees: Ann Arbor residents enjoy the highest level of healthcare access of the cities on our list, and ranks #1 for health overall.

4. Durham, NC

Friendship and social interaction are important in retirement. Durham, one of the top cities to retire in the U.S., offers a strong sense of community and social well-being, according to the data. Residents will find plentiful healthcare in Durham as well. It ranks #2 out of the top 20 for healthcare access.

5. Boulder, CO

If you like to hit the slopes, Boulder may be the ideal location for your retirement years. The city is #3 on the top 20 list for housing and transportation, so you should be able to find the right place to live and get around easily.

6. North Port, FL

North Port is the second Florida city to make the top 20 list of the happiest places to live in the U.S. Community and social connection is high here, and there’s a sizable population of those aged 65 and up, making it easier to meet new friends. It also has one of the lowest tax burdens among the top 20 cities.

7. Olympia, WA

Retirees who want to live affordably on the west coast can check out scenic Olympia, WA. It ranks as #1 in the financial category, which takes into account factors such as cost of living and household income. It’s also one of the best states to retire in for taxes, which can help retirees stretch their savings. Olympia has the lowest number of residents living below the poverty level of all 200 cities we analyzed.

8. San Jose, CA

Retirees in San Jose enjoy the second-highest average life expectancy (after Naples, FL) of the 200 cities we studied, making it one of the top places for a long and healthy retirement. But there’s a tradeoff: The cost of living in San Jose is extremely high: a whopping 231% of the U.S. average.

9. San Luis Obispo, CA

If being in a comfortable environment is one of your top retirement priorities, look no further than San Luis Obispo. Along with San Jose, the city scored the highest level of comfort for retirees on our top 20 cities list, thanks to its temperate weather.

10. Madison, WI

A low average cost of living plus a high median household income ($83,214) make Madison not only one of the happiest places to live in retirement, but also one of the most affordable. In this relatively walkable city, you can save on transportation costs and live a healthier lifestyle.

Recommended: Average Retirement Savings By State

11. Honolulu, HI

Honolulu combines great weather, pristine beaches, and big city living. It gets high scores for comfortable weather and transportation. And Honolulu has some of the highest scores for social factors and community. Retiring in paradise comes at a price, however — namely, the city’s high cost of living (171.5% of the U.S. average).

12. Salisbury, MD

Salisbury, in the Eastern Shore area of Maryland, is a popular place for retirees. More than a quarter of the population is 65 and over, which means you should have plenty of peers to socialize and do activities with.

13. Washington, DC

If you’re interested in history and culture, Washington D.C. might be a good fit. And many of the city’s major attractions are free of charge. The nation’s capital is also the most walkable city on our top 20 list of the happiest places to live after retirement, so you’ll save on transportation as you get your steps in.

14. Portland, ME

In this city on the coast, you can enjoy all that the ocean has to offer plus metropolitan amenities. Portland ranks as one of the best cities to retire in when it comes to community, and it also has abundant options for art, recreation, and entertainment, which can help you stay happily busy in retirement.

15. Myrtle Beach, SC

Retirees settle down in this popular travel destination to take advantage of the reasonable cost of living and low tax burden. They also love the miles of beaches, plentiful golf courses, and comfortable weather. Myrtle Beach has the 4th highest population of people age 65-plus.

16. Harrisburg, PA

The capital city of Pennsylvania is an affordable place to retire. It has a low cost of living, which means the city’s average median income of $73,739 can go farther. Fewer people live below the poverty line here than in many other cities. Retirees can be active here as well: Harrisburg ranks as #2 of our top cities when it comes to walkability.

17. Fort Collins, CO

If you love the great outdoors, this city, located at the foot of the Rocky Mountains, has a lot to offer. All those outside adventures come with some nice health perks: Fort Collins has one of the higher life expectancies of our 20 top cities for retirees.

18. Denver, CO

Where is the happiest place to retire? It might just be the state of Colorado. Denver is the third Colorado city to make the top 20 list of happy places for retirees to live. Denver has a high level of community and social well-being, which could make retirement a lot more fulfilling. It’s very walkable, too, coming in at #5 out of the top 20 in the walking category.

19. Akron, OH

With the lowest cost of living (80.8% of the U.S. average) of the 20 best cities, Akron offers retirees affordability plus many opportunities for social and community connection. That can make it easier to make new friends in retirement.

20. Charleston, SC

A vibrant cultural scene, great food, ocean access, and lovely architecture make Charleston one of the best places to retire in 2024. Charleston ranks #2 for art, recreation, and entertainment out of the 200 cities studied, following only Los Angeles, so you’ll find plenty to do here in your golden years. And the tax burden is one of the lowest on our 20 happiest cities list.

Best Places to Retire for a Happy Retirement

Want to consider some of the different places that could make for a very happy retirement? The map below shows the top five cities out of the 200 analyzed in each of the three key categories that contribute to happiness: social, financial, and health.

Happiest cities for retirees by category

200 Cities Studied for Happiest Places to Retire

Reviewing the full list of 200 cities studied for the Happiest Places to Retire can reveal additional great options for retirement. For example, following Naples, FL, the next three cities with the highest life expectancy — San Jose, CA, San Francisco, CA, and New York, NY — are all bustling, well-populated cities that also rank highly for community and social factors. Take a look at what cities across the U.S. have to offer.

Overall Rank

 City

 Total Score

 Social rank

 Financial Rank

 Health Rank
1 Barnstable, MA 62.05 1 6 120
2 Naples, FL 61.43 2 18 32
3 Ann Arbor, MI 61.40 64 14 1
4 Durham, NC 57.56 57 13 2
5 Boulder, CO 56.95 21 16 13
6 North Port, FL 56.77 4 37 129
7 Olympia, WA 56.46 32 1 88
8 San Jose, CA 55.52 5 113 7
9 San Luis Obispo, CA 55.18 9 11 41
10 Madison, WI 55.13 84 5 11
11 Honolulu, HI 54.82 7 71 12
12 Salisbury, MD 54.70 11 3 177
13 Washington DC 54.33 23 17 19
14 Portland, ME 53.86 17 35 22
15 Myrtle Beach, SC 53.66 8 20 181
16 Harrisburg, PA 52.39 50 24 24
17 Fort Collins, CO 52.11 34 19 80
18 Denver, CO 52.03 86 9 33
19 Akron, OH 51.64 55 10 69
20 Charleston, SC 51.62 37 55 30
21 Manchester, NH 51.49 47 22 58
22 Seattle, WA 51.44 19 101 15
23 Minneapolis, MN 51.22 48 26 28
24 Richmond, VA 50.56 24 46 40
25 Bridgeport, CT 50.52 25 83 8
26 Daphne, AL 50.50 31 12 171
27 Des Moines, IA 50.49 106 2 158
28 San Francisco, CA 50.42 6 172 4
29 Santa Rosa, CA 50.11 14 81 43
30 Raleigh, NC 50.08 45 42 56
31 Prescott Valley, AZ 49.92 3 118 193
32 Oxnard, CA 49.38 16 78 49
33 Asheville, NC 49.35 10 125 57
34 Bremerton, WA 49.22 22 52 108
35 Boston, MA 49.18 33 139 6
36 Colorado Springs, CO 49.18 95 7 141
37 Pittsburgh, PA 49.14 35 82 47
38 Portland, OR 49.03 58 96 14
39 Hartford, CT 49.02 62 36 16
40 Omaha, NE 49.00 87 25 37
41 St. Louis, MO 48.88 56 73 36
42 Lancaster, PA 48.80 46 48 74
43 Chattanooga, TN 48.79 43 53 122
44 Appleton, WI 48.78 41 30 128
45 Sioux Falls, SD 48.48 92 34 83
46 Salt Lake City, UT 48.42 125 23 25
47 Charlotte, NC 48.40 38 61 90
48 Allentown, PA 48.35 52 43 42
49 Crestview, FL 47.95 61 15 183
50 Cape Coral, FL 47.88 13 119 110
51 New Haven, CT 47.81 73 65 9
52 Austin, TX 47.76 123 40 48
53 San Diego, CA 47.73 27 103 29
54 Peoria, IL 47.60 66 27 91
55 Tucson, AZ 47.56 69 59 67
56 Green Bay, WI 47.33 80 33 92
57 Lexington, KY 47.28 94 79 31
58 Deltonah, FL 47.24 18 58 198
59 Reno, NV 47.08 44 67 117
60 Tyler, TX 47.07 127 28 99
61 Ogden, UT 47.07 101 8 160
62 Santa Cruz, CA 46.99 12 147 27
63 Atlanta, GA 46.97 54 100 60
64 York, PA 46.96 53 49 112
65 Palm Baye, FL 46.89 20 84 182
66 Boise City, ID 46.89 96 32 98
67 Grand Rapids, MI 46.89 140 39 55
68 Cincinnati, OH 46.77 71 74 63
69 Wilmington, NC 46.53 40 105 79
70 Canton, OH 46.52 100 29 131
71 Fargo, ND 46.49 154 21 71
72 Savannah, GA 46.37 107 63 59
73 Provo, UT 46.20 135 4 175
74 Norwich, CT 46.08 49 31 115
75 Roanoke, VA 46.05 28 123 46
76 Baltimore, MD 45.92 29 120 68
77 Philadelphia, PA 45.91 63 109 44
78 Nashville, TN 45.89 99 68 105
79 Anchorage, AK 45.87 136 87 86
80 Indianapolis, IN 45.73 119 44 95
81 Sacramento, CA 45.72 42 98 50
82 Trenton, NJ 45.67 70 110 18
83 Lincoln, NE 45.63 103 38 93
84 Port St. Lucie, FL 45.51 15 126 173
85 Albany, NY 45.48 60 62 38
86 Vallejo, CA 45.16 36 97 89
87 Louisville, KY 45.03 117 47 106
88 Worcester, MA 44.90 82 94 51
89 Virginia Beach, VA 44.90 83 70 64
90 Huntsville, AL 44.81 77 60 142
91 Chicago, IL 44.70 79 107 26
92 Kalamazoo, MI 44.57 149 64 70
93 Poughkeepsie, NY 44.47 90 54 45
94 Spokane, WA 44.35 113 51 111
95 Eugene, OR 44.29 68 108 81
96 Columbia, SC 44.22 105 91 104
97 Kansas City, MO 44.13 75 88 103
98 Phoenix, AZ 43.94 89 104 85
99 Jacksonville, FL 43.71 67 102 152
100 Salinas, CA 43.70 85 86 66
101 Little Rock, AR 43.63 144 80 61
102 Dallas, TX 43.55 130 90 97
103 Cleveland, OH 43.47 139 142 10
104 Greenville, SC 43.41 118 106 75
105 Lansing, MI 43.35 150 56 125
106 Rochester, NY 43.26 114 93 20
107 Cedar Rapids, IA 43.25 104 50 161
108 Winston, NC 43.23 91 116 73
109 Greeley, CO 43.15 141 41 162
110 Detroit, MI 43.15 72 122 116
111 Reading, PA 42.88 76 117 87
112 Fort Wayne, IN 42.52 152 45 168
113 Dayton, OH 42.43 111 95 127
114 Davenport, IA 42.37 110 77 139
115 Atlantic City, NJ 42.26 39 131 100
116 Fayetteville, AR 42.17 122 75 151
117 Santa Maria, CA 42.11 59 134 53
118 Evansville, IN 41.59 161 57 144
119 Knoxville, TN 41.58 74 138 149
120 Oklahoma City, OK 41.21 148 89 150
121 Milwaukee, WI 41.18 98 141 54
122 South Bend, IN 41.14 145 85 167
123 Hagerstown, MD 40.26 81 112 179
124 Columbus, OH 40.23 166 72 137
125 Ocala, FL 40.11 26 153 199
126 Birmingham, AL 39.94 65 159 107
127 Montgomery, AL 39.91 134 92 189
128 Rockford, IL 39.80 143 76 157
129 Pensacola, FL 39.44 133 121 153
130 New York, NY 39.32 51 184 5
131 Syracuse, NY 39.27 137 124 35
132 Killeen, TX 39.26 186 69 114
133 Lynchburg, VA 39.22 155 66 174
134 Buffalo, NY 38.98 128 128 39
135 Wichita, KS 38.67 97 135 163
136 Tallahassee, FL 38.65 147 132 134
137 Providence, RI 38.62 112 167 34
138 Los Angeles, CA 38.60 30 187 23
139 Kennewick, WA 38.45 151 127 123
140 Flint, MI 38.34 171 111 156
141 Orlando, FL 38.33 153 155 72
142 Tulsa, OK 38.31 174 99 169
143 Las Vegas, NV 38.31 121 146 135
144 Salem, OR 38.25 138 130 133
145 Duluth, MN 38.21 116 136 126
146 Erie, PA 37.91 126 137 154
147 Springfield, MA 37.88 115 162 62
148 Hickory, NC 37.71 93 140 194
149 Tampa, FL 37.66 102 174 77
150 Albuquerque, NM 37.59 146 157 65
151 Gainesville, FL 37.58 178 182 3
152 Huntington, WV 37.41 88 161 159
153 Toledo, OH 37.11 168 144 82
154 Scranton, PA 37.05 109 156 143
155 Jackson, MS 36.89 175 148 76
156 Amarillo, TX 36.78 142 149 176
157 Kingsport, TN 36.67 158 133 190
158 Springfield, MO 36.65 164 129 165
159 Youngstown, OH 36.63 78 158 188
160 Houston, TX 35.66 179 164 52
161 Binghamton, NY 35.66 162 114 124
162 Charleston, WV 34.97 132 168 138
163 San Antonio, TX 34.88 184 152 94
164 Waco, TX 34.80 176 143 170
165 Greensboro, NC 34.68 108 175 148
166 Augusta, GA 34.56 120 176 145
167 New Orleans, LA 34.48 172 181 21
168 Utica, NY 34.17 167 115 155
169 Memphis, TN 34.17 182 160 130
170 Lubbock, TX 33.95 183 166 84
171 Lakeland, FL 33.94 124 173 178
172 Stockton, CA 33.82 156 154 146
173 Riverside, CA 33.53 129 169 121
174 Macon, GA 33.03 163 180 101
175 Spartanburg, SC 32.77 131 177 185
176 Longview, TX 31.85 185 150 191
177 Miami, FL 31.74 157 192 17
178 Baton Rouge, LA 31.69 181 170 136
179 College Station, TX 30.49 193 165 96
180 Tuscaloosa, AL 30.35 165 179 180
181 Clarksville, TN 30.17 189 145 200
182 Mobile, AL 29.95 170 185 113
183 Shreveport, LA 29.22 177 191 78
184 Fayetteville, NC 28.42 187 171 184
185 Fort Smith, AR 27.72 159 186 196
186 Beaumont, TX 27.36 197 151 195
187 Gulfport, MS 27.33 173 183 197
188 Fresno, CA 26.58 188 178 119
189 Corpus Christi, TX 26.09 192 189 102
190 Modesto, CA 26.05 169 190 147
191 Visalia, CA 25.28 196 163 166
192 Columbus, GA 24.08 160 193 192
193 Lafayette, LA 23.64 180 196 109
194 Bakersfield, CA 21.84 190 188 186
195 Merced, CA 18.10 191 194 187
196 Yakima, WA 17.32 195 195 164
197 El Paso, TX 8.56 194 198 118
198 McAllen, TX 3.30 200 197 132
199 Brownsville, TX 2.10 198 199 140
200 Laredo, TX -3.32 199 200 172

Tips for a Happy Retirement

You’ve worked hard, now it’s time to enjoy yourself! These smart strategies can help you find happiness in retirement.

•   Create a budget. You may have fewer expenses when you’re retired, but you’ll still need a roadmap for managing them. This is where retirement planning and a budget come in handy. If you are already retired, create a budget that works well for your retirement income. If retirement is still in the future, map out a plan to see how much you’ll need to save to be properly prepared.

•   Keep tabs on your retirement savings. Don’t forget to check on your retirement savings regularly to ensure that you’re on track financially. And, of course, make sure you have retirement savings accounts like a 401(k) or a traditional or Roth IRA to help you reach your goal.

Don’t yet have a retirement account? Learn how to open an IRA account.

•   Prioritize health and wellness. To be at your best, strongest, and happiest in retirement, prioritize your physical and mental health with regular exercise, a balanced diet, and lots of social interaction.

•   Pursue your passions. Don’t let retirement slow you down. You can pursue your favorite hobbies, work on fulfilling and meeting your top ambitions and challenges, and do the activities you’ve always wanted to try now that you have the time and freedom for them. When choosing among the best retirement cities, be sure to look for places that cater to your interests.

Methodology

To find the happiest cities for people to retire in the U.S., we looked at the 200 largest metropolitan statistical areas (MSAs) based on the U.S. Census Bureau’s 2022 population estimates for 13 ranking factors across three categories (Social, Finance, and Health).

We graded each factor on a 100-point scale, where 100 was the highest possible score. Each factor was weighted differently.

Socioeconomic Score Factors

•   Community well-being

•   Social well-being

•   Comfort index*

•   Percentage of population age 65 and over

•   Percentage of art, recreation, and entertainment businesses

Financial Score Factors

•   Housing & transportation

•   Cost of living index*

•   Median household income

•   Percentage of people aged 65 and over living below poverty level

•   Tax burden**

Health Score Factors

•   Healthcare access

•   Life expectancy

•   Walk Score*

*Data represents city proper data (excluding surrounding metro).
**Data represents state level data.

Sources: U.S Census Bureau, Sharecare Community Well-Being Index, Walk Score, Tax Foundation, County Health Rankings & Roadmaps, Sperling’s Best Places.

The Takeaway

When you’re ready to retire, choosing where to settle down is a big and important decision. Exploring our list of top 20 happiest places is a great place to start. You can look for cities that offer affordability, good access to healthcare, entertainment and cultural activities, and opportunities for making social and community connections.

And to ensure that your retirement is as happy and stress-free as possible, you’ll want to have your retirement savings in order. Contributing to your 401(k) or IRA can help you build the retirement nest egg you’ll need.

Invest in what matters most to you with SoFi Active Invest. In a self-directed account provided by SoFi Securities, you can trade stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, options, and more — all while paying $0 commission on every trade. Other fees may apply. Whether you want to trade after-hours or manage your portfolio using real-time stock insights and analyst ratings, you can invest your way in SoFi's easy-to-use mobile app.

Invest with as little as $5 with a SoFi Active Investing account.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Dec
26
2023

7 Online Financial Calculators to Power Your Personal Finances

By | Budgeting & Goals, Family Finances, invest, Life & Career, personal_loan, student_loan | No Comments

Your personal finances can be an important but challenging aspect of your life to manage. Even if you are brilliant at math, computing things like the payoff amount on student loans or the optimal goal for retirement savings can be complicated.

That’s where financial calculators can swoop in and help you. These tools can make it simple to see how much you are spending in, say, credit card interest or what a mortgage payment might look like on your dream house.

Here’s a resource with a variety of financial calculators. Read on to learn what kind of assistance is out there to help you take control of your money and your goals.

1. Student Loan Calculator

There are plenty of student loan calculators out there that can help you estimate your monthly payment and total interest cost.

In addition, you are likely to find student loan refinancing calculators to get a basic idea of how refinancing might affect your bottom line.

Typically, you enter your current loan information, then adjust the term “slider” to see how your monthly payment and total savings amount could be impacted by refinancing.

You could see valuable information like how much you might be able to save every month by refinancing or how much you could potentially save over the lifetime of a loan if you were to refinance. (Calculated payments and savings are only estimates, and don’t factor in your current credit picture or financial situation.)

Just keep in mind that refinancing isn’t necessarily the right choice for everyone. If you have federal student loans and refinance, you will forfeit federal protections and benefits. Also, if you refinance for an extended term, you may pay more interest over the life of the loan.


💡 Quick Tip: A low-interest personal loan from SoFi can help you consolidate your debts, lower your monthly payments, and get you out of debt sooner.

2. Retirement Calculator

It’s almost impossible for one online retirement calculator to take into account all the variables that retirement planning requires. But a calculator could still be useful to give you a general idea of how much money you may want to be saving and how big your retirement nest egg could grow.

It might also give you some insight into how much you’re contributing now, and if you might want to think about adjusting your IRA (individual retirement account), 401(k), or other retirement investment.

One online tool that may be helpful is AARP’s Retirement Calculator . It asks for quite a bit of information, including information about your age, income, current savings and lifestyle expectations in retirement (i.e., will you need more, less, or the same amount of money as you now spend).

The calculator then gives an estimate of how much wealth you’re likely to accumulate and changes you could make — like working longer or saving more — that might help improve your outcomes. Understanding when to retire and what your expenses will be like at that life stage can be an important part of your future planning.

3. Budgeting Calculator

Making a budget — and sticking to it — is one important step on the road to financial security. By making a budget and sticking to it, you might be able to save some extra cash and even be able to gain some new insight and understanding about how you’re currently spending your money.

Setting up a budget might have a snowball effect, potentially empowering you to save even more money once you have a holistic view of current spending. By tracking your finances with a budgeting tool, you can get a better sense of how your earnings, spending, and savings are tracking. It can also help you course-correct if, say, you get hit with a big unexpected bill or move to an area with a different cost of living.

4. & 5. Credit Card Debt Payoff Calculator

Various tools can be helpful if you’re focused on paying down some credit card debt.

•   You might want to use this debt snowball calculator to figure out how long it could take you to completely pay down your balance. In this method, you eliminate your smallest debt first, which can build your motivation. You may want to see how increasing your monthly payments could affect your debt and help you save on interest, which might help keep you motivated in your payoff goals.

You could also use a calculator to see how much faster you could pay off your debt with the debt avalanche method. With this technique, you go after your highest interest-rate debt first.

•   Additionally, to take a look at debt in terms of your credit card interest rate, you might spend some time using a credit card interest calculator. Since credit card debt can be one of the most challenging debts to pay off, you might want to understand how much you are paying overall.

This kind of calculator shows roughly how much interest you could end up paying on your credit card debt. It can give a broad estimate of when that debt could be paid off in full if you continue to make the same payments. Equipped with that information, you might decide to opt for a different way to pay down your debt, such as looking for a lower-interest personal loan.

6. Student Loan Payoff Calculator

If you’re budgeting for your student loans, you could try working with a student loan payoff calculator. Simply add your basic information, and it calculates when your estimated payoff date could be. Plus, you can often click through and discover additional information and tips you could use to potentially shorten that payoff period.

Some of these ideas might include things like seeing if you can find a lower interest rate or making additional payments. Plugging these two data points into the calculator might give you a basic estimate of how much sooner you could pay off your loans.

7. Housing Costs Calculator

Is your attention focused on buying a home? Are you all about mood boards for the primary bedroom and vegetable garden you’ll plant? Then you’re in the right place.

A home affordability calculator can help you look at how much house you can afford. It will help you factor in such considerations mortgage amount, interest rate, property taxes, and so forth. It can be a great way to get a handle on just how much homeownership might cost you.

Additionally, a mortgage calculator can help you get a sense of how much you can save on your monthly payment by changing your down payment. This intel can help you decide whether to start bidding soon or wait until you have a bigger chunk of cash to put down.

These tools can help you decide whether to rent or buy in the near future, as well as (when buying) how to determine the right balance of down payment and financing to suit your budget.

Get Started on Your Goals With These Tools

Your goals are probably pretty unique to you and where you’re at career-wise, with money, and maybe even with outstanding loans. So there’s probably not one end-all, be-all financial calculator to help you achieve all of your financial goals. But there are an array of tools that can help you track your money and determine good options as you move forward.

As you evaluate where your finances stand, you may want to consider ways to pay down debt, such as using a personal loan to eliminate high-interest debt and lower your monthly outlay of funds.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.


SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

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Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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19
2023
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Average Moving Costs and How to Cover Them

By | Budgeting & Goals, Life & Career, personal_loan | No Comments

Moving is part of most people’s lives. Maybe you’re heading to grad school a couple of towns away. Or perhaps you have a job offer hundreds of miles away that you’re excited to accept.

Whatever the reason, the logistics of getting your stuff from the old place to the new one will need wrangling. Here, you’ll learn more about your options for moving, how much it may cost (from a couple of hundred dollars to thousands), and how to afford the expense.

Key Points

•   DIY moves can be budget-friendly for short distances, but costs for truck rental, supplies, and gas can still add up.

•   Full-service moves average $2,100 for local relocations and $4,300 for cross-country moves, with costs rising for heavy or complex items.

•   Extra expenses like travel, deposits, home repairs, and new household items can significantly increase total moving costs.

•   A personal loan may be a lower-interest alternative to credit cards for covering moving expenses, especially if reimbursement is delayed.

DIY Moving Costs

Yes, you could move yourself. This could be a smart move for a small, local move, and it can help keep costs within your budget.

Exactly how much this might cost will be based on several factors:

•   Cost of transportation (can you borrow a friend’s van or do you need to rent one)?

•   Cost of the packing materials you use (recycled boxes and old newspapers vs. the pros’ higher-end and job-specific supplies

•   How much stuff you’re moving (and if you need to figure out insurance for any pricey items)

•   How far you’re going

•   Whether you need to store some things temporarily.

As you might guess, packing up the contents of a dorm room and moving it half a mile away to the apartment you’re renting with friends will cost one amount. Supplies might cost, say, $65.

Loading up the contents of the sweet bungalow you’ve been living in for a couple of years and depositing your worldly possessions at a new place 1,000 miles away will be a much more involved and expensive undertaking. Packing materials alone could be a few or several hundred dollars, and renting a moving truck could be anywhere from $20 to $100 per day, depending on your local cost of living. Also, you will likely have to pay to stay somewhere overnight and also spend at least a couple of hundred dollars on gas, dollies, and insurance.


💡 Quick Tip: Some personal loan lenders can release your funds as quickly as the same day your loan is approved.

Full Service Moving Costs

If you decide a full-service move best meets your needs, you’re probably going to want to gather some estimates, so you can nail down the details and be ready when it’s time to go. Some pointers as you do so:

•   Also, do check ratings and references carefully. There are plenty of instances of fraud and scams in this realm, and it’s wise to protect yourself.

•   Booking your truck four to eight weeks in advance is typically a good rule of thumb — maybe even further out if you’re moving in the busy summer months.

•   Professional moving companies can give you an estimate based largely on how many rooms of furniture you have. Most have websites, so you can often get a quick estimate online. A typical local (or fairly local, not long-haul) move for a three-bedroom home is about $2,100.

The average moving costs if you relocate cross-country can easily be twice that, or $4,300 for a distance of about 1,225 miles. Keep in mind, specifics will vary. Oversized or extremely heavy items might cost you extra — as could lots of stairs, or things that need to be taken apart and put back together.

Recommended: Average Personal Loan Rates

Extra Moving Costs to Think About

Then there are the extras that go along with getting out of one place and into another.

•   Transportation: If you’re taking your car across the country, you’ll probably want to get a tune-up before you go. And then there’s gas, hotel stays, and eating on the road. Having a car transported instead of driving it yourself could cost anywhere from $700 to $2,000.

If you’re in a hurry and decide to fly, that’s another expense. And if you’re taking a pet, you may have to add a little bit more to your overall bill, depending on the mode of transportation you choose for your furry friend.

•   Getting into your new home: Don’t forget about deposits you might have to make at your new location. That could be anything from first and last month’s rent and a pet deposit at a new apartment, to utility deposits at a new house.

•   Home repairs and cleaning: Be ready to pay for some home repairs on both ends of your move. You may have to make some quick fixes to get out of your rental without losing the deposit or maybe even major repairs if you’re selling a home. When you get to your new location, you could find some unexpected problems. Or you may just want to hire someone to come in and clean so you can cross that off your ever-growing moving to-do list.

•   Starting out fresh: You’ll probably need to buy some things at your new home (like curtains, curtain rods, hangers, bedding, etc.) that are easily overlooked. Then there’s that fridge to fill. All those little costs can add up.

•   Cash for tips: You will likely need to withdraw money from an ATM to thank people for their help when you move. Tips for the movers. Tips for the handyman or housekeeper who helps you get things in shape. Tips at your hotel. Tips for waitstaff at the restaurants you’ll be eating at until you get your new place up and running—or at the very least, tips for the pizza delivery guy.

Recommended: Typical Personal Loan Requirements Needed for Approval

Financing Your Move

If you have enough room on multiple credit cards, you could go that route, but should you? Interest rates can be considerable.

Or would a personal loan make more sense for you to cover all those costs, big and small?

Remember, even if you’ll be reimbursed by your employer or plan to take some moving deductions when you file your tax return, it’s very likely you’ll be paying at least some moving costs up front. And the longer those expenses sit on a credit card, the more interest racks up.

The Takeaway

Even if you have a small amount of stuff and aren’t moving very far, moving takes time, energy, organization, and money. With the average professional move costing a couple of thousand dollars, you may want to plan carefully for this expense. It’s likely not a good reason to dip into your emergency fund, so you may want to save in advance or consider a personal loan. If you qualify for a personal loan, your interest rate may be lower than a credit card, which can free up some cash and reduce your money stress.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.


SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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Dec
04
2023
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Strategies for Lowering Your Student Loan Interest Rate

By | Budgeting & Goals, Financial Independence, Fresh Out of School, Student Loans, student_loan | No Comments

When you’re in college, you don’t have a lot of control over the interest rates on your student loans. With federal loans, the U.S. Department of Education sets the rate each year for all borrowers. And if you get private student loans, a limited credit history can make it hard for young people to score favorable terms.

But once you graduate, there are a few things you can try to save money on interest. Here are a few tips that may lower your interest rate on student loans.

Key Points

•   Refinancing can lower your student loan interest rate if you have good credit, a low debt-to-income ratio, or a qualified co-signer, though it means giving up federal loan protections.

•   Consolidation simplifies multiple loans into one payment but does not reduce your interest rate — the new rate is a weighted average of your existing loans.

•   Many servicers offer an autopay discount (typically around 0.25%), lowering your rate and reducing the risk of missed payments.

•  Repayment plan choices like IDR may lower monthly payments but often increase total interest paid, while PSLF offers forgiveness for qualifying public service workers after 10 years.

Refinancing Your Student Loans

Scoring discounts with your current servicer can help you get a lower student loan interest rate, but there is another option to consider. Depending on your financial profile, you may qualify for a lower student loan interest rate than what you’re currently paying with student loan refinancing.

There are multiple advantages to refinancing student loans. You can potentially lower your interest rate by bundling several loans (federal and private) into one new loan. And if you shorten your loan term, you may be able to pay off your student loans much faster and pay less in interest over the life of your loan.

Student Loan RefinancingStudent Loan Refinancing

Student loan refinancing is ideal for borrowers with high-interest student loans who have good credit scores and know they won’t use any of the federal loan benefits, like student loan forgiveness. (All federal loan benefits, including income-based repayment, will be lost if you refinance.)

Here are a few things that can help you improve your chances of getting a lower student loan interest rate with refinancing:

•   A high credit score: Lenders typically have a minimum credit score requirement, so the higher your score, the better your chances of getting a low rate usually are.

•   A low debt-to-income (DTI) ratio: Your income is also an important factor that lenders consider, especially as it relates to your overall debt burden. If a smaller portion of your monthly income goes toward debt payments, it shows you may have more income to dedicate to your new loan’s payments.

•   A co-signer: Even if your credit and income situation is in good shape, having a co-signer with great credit and a solid income might help your case.

•   A variable rate: Some student loan refinance lenders offer both variable and fixed interest rates. Variable interest rates may start out lower but increase over time with market fluctuations. Fixed rates, stay the same over the life of the loan. If you’re planning on paying off your student loans quickly, a variable rate might save you money.

•   The right lender: Each lender has its own criteria for setting interest rates, so it’s important to shop around to find the best lender for your needs. Some lenders, including SoFi, even allow you to view rate offers before you officially apply.


💡 Quick Tip: Enjoy no hidden fees and special member benefits when you refinance student loans with SoFi.

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Consolidate Your Student Loans

Have multiple student loans floating around that you’d love to combine into one? Consider loan consolidation, where you’ll merge all your student loans into one easy monthly payment with a single interest rate. Here’s the rub, though: Consolidation alone does not necessarily get you a lower student loan interest rate. It just offers you one payment instead of multiple.

When consolidating federal student loans, you can use a Direct Consolidation Loan. Your new interest rate is simply the weighted average of all your current student loan interest rates. The weighted average might be a smidge higher than the interest rates you were paying previously. Often folks utilize consolidation to stretch out the life of their student loan, which lowers your payments but may increase the amount you owe over time.

Even though consolidation itself is not a direct way to get a better rate on your student loans, it can be helpful if you’re having trouble keeping track of your monthly payments. Consolidation may also be useful if you want to merge non-direct federal loans (like Perkins loans) with direct loans, in order to qualify for income-driven repayment and/or loan forgiveness programs.

By the way, the term “consolidating” is often used interchangeably with “refinancing,” but they technically mean different things. When refinancing student loans, you also happen to be consolidating, but it is done with the goal of achieving a more favorable interest rate on your student loans.

Recommended: The Basics of the Student Loans

Set Up Automatic Payments

Many student loan servicers — both federal and private — offer an interest rate discount if you set up autopay on your account. Depending on the servicer, you can lower your student loan interest rate. SoFi, for example, offers a 0.25% autopay discount.

The reason servicers offer this discount is that by setting up automatic payments, you’re less likely to miss payments and default on the loan.

In addition to getting a lower student loan interest rate, you’ll also (hopefully!) have peace of mind knowing that you won’t accidentally miss a payment. If you feel you’re putting a little too much money toward student loans, check with your loan servicer to see whether they offer an autopay discount.

To get an idea of how a change in interest rate would impact your loan, take advantage of a student loan refinance calculator to see what your new payments could be.


💡 Quick Tip: Refinancing could be a great choice for working graduates who have higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private student loans.

Choose the Right Repayment Plan

If you don’t choose a specific repayment path, you’re typically opted into the Standard Repayment Plan. In this plan, your payments are generally based on a 10-year timeline. But this one-size-fits-all plan is not the best option for everyone.

The federal government also offers four income-driven repayment (IDR) plans — Pay As You Earn (PAYE), Saving on a Valuable Education (SAVE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR) — where the monthly payments are based on your income and family size. While choosing one of these plans may lower your monthly payments, it will likely not alleviate how much interest you pay over time. In fact, you might even pay significantly more.

After 20 or 25 years, depending on the IDR plan, any remaining balance is forgiven. However, the amount forgiven may be considered taxable income by the IRS. So even though your student loan debt goes away, prepare yourself for a big tax bill that year.

Another money-saving repayment option for federal student loans is the Public Service Loan Forgiveness (PSLF) program. If you work in a qualifying public service job — for the government or a nonprofit organization — you might be eligible to have your student loans forgiven after 10 years of service.

You can confirm whether your work qualifies here. You’ll want to submit an Employment Certification as soon as possible to be sure that you’re on track to qualify.

Recommended: 4 Student Loan Repayment Options, and How to Choose

Lower Your Student Loan Interest Rate

There are several ways to get a lower student loan interest rate. It can be as easy as calling your servicer to find out what discounts are available. You can also choose a new repayment plan, consolidate your federal loans, or refinance federal and private loans. With refinancing, you may secure a lower interest rate if you have a high credit score, low debt-to-income ratio, a cosigner, or a variable interest rate. Just know that when refinancing federal student loans, borrowers lose federal protections and forgiveness.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Nov
26
2023
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The Investor’s Guide to Navigating 401(k) Fees

By | Budgeting & Goals, invest, Preparing for Retirement | No Comments

Approximately 60 million Americans have 401(k) plans through their employer. But many of them aren’t aware of the fees these plans charge. In fact, the majority of investors have no idea how much they’re paying in 401(k) fees, according to a 2022 survey.

Learning about these fees is important because 401(k) fees can add up to tens of thousands of dollars over time and cut into your retirement savings. That’s why you’ll want to find out what these fees consist of and how much they are.

Read on to learn more about 401(k) fees and the steps you may be able to take to help reduce them.

Understanding the Basics of 401(k) Fees

401(k) fees are charged by the provider of your 401(k) plan and the investment funds within the plan. There are three main types of 401(k) fees: investment fees, administrative fees, and service fees. Here’s what these fees cover.

Investment fees: Sometimes also referred to as the expense ratio, investment fees cover an investment’s operating and management costs. These fees are deducted from the investment’s performance and are generally expressed as a percentage.

Administrative fees: These are used to cover the management of your account, including record keeping, accounting, and customer service, among other things. They may be a flat fee or a percentage of the account’s total balance.

Service fees: These fees cover additional services related to your 401(k), such as taking out a 401(k) loan or using financial advisory services. You are only charged these fees if you use the services.

The Impact of Fees on Your Retirement Savings

According to the Investment Company Institute, the average 401(k) participant is in a plan with fees of 0.55%. That means the fees on the average 401(k) account balance of $141,542 would be approximately $778 a year. Over 20 years, that would add up to $15,560 in fees. Over 30 years, fees would total $23,340.

As you can see, this could significantly reduce your retirement savings. And, of course, the greater your account balance, the more fees you would pay.

The types of investments you make will also affect the fees you pay. For instance investments that are actively traded tend to have higher fees, while those that are passively traded typically have lower fees.

How to Interpret Fees on Your 401(k) Statement

Fees are included in your 401(k) statement or prospectus, as required by the U.S. Department of Labor. They may be listed as “Total Asset Based Fees,” “Total Operating Expenses,” or “Expense Ratios.”

Fees should be listed for each investment in your plan. For instance, if a fund had 1.25% of Total Operating Expenses, that means 1.25% of the fund’s assets are used to cover the fund’s operating expenses. So for every $1,000 invested in that fund, the operating expense fees are $12.50.


💡 Quick Tip: Look for an online brokerage with low trading commissions as well as no account minimum. Higher fees can cut into investment returns over time.

How Your 401(k) Fees Stack Up

Once you find the fees in your 401(k) plan, you can determine how they compare to standard 401(k) fees. Here’s a look at what 401(k) fees generally are.

What Are Typical 401(k) Fees?

401(k) fees are based on such factors as the size of the plan, the number of employees in the plan, and the provider offering the plan. These fees can run anywhere from 0.5% to 2%. As mentioned earlier, the average 401(k) participant’s plan fees are approximately 0.55%.

The Significance of Expense Ratios and Industry Averages

You may hear the term “expense ratio” and wonder what it is. An expense ratio is how much you’ll pay over the course of a year to own a particular investment fund such as a mutual fund or an exchange-traded fund (ETF). This fee typically covers the cost of operating and managing the fund. In 2022, the average expense ratio for actively managed mutual funds was 0.66%.

Practical Ways to Minimize 401(k) Fees

While you can’t avoid 401(k) fees, there are some actions you can take to reduce their impact on your retirement savings.

Identifying and Reducing Excess Fees

The fee charged by the plan’s provider is a set fee, however, you may be able to lower the investment fees you pay. To do that, review the expense ratios for the different investment funds in the plan. Then, if it makes sense with your overall investment strategy, pick funds within the plan that have lower expense ratios and avoid funds with higher fees.

In addition, if you think the 401(k) fees charged by your plan are too high in general, speak to your human resources department and ask if they would consider switching to another 401(k) plan with lower fees. This may not be possible, but it doesn’t hurt to ask.

Addressing Hidden Fees in Your 401(k)

The fees in your 401(k) aren’t technically hidden. But they do go by names you may not be familiar with. Here’s how to spot them.

Tools for Uncovering Hidden Fees

The best way to find the fees in your 401(k) is to carefully read through your plan’s prospectus. You now know to look for investment fees or expense ratios, administration fees, and service fees. In addition, look for “12-b1” fees. You may find them fees listed under marketing and distribution. These fees are for the agent or broker who sold the 401(k) plan to your employer. 12-b1 fees are capped at 0.75% of a fund’s assets annually.

Understanding Revenue Sharing and Its Implications

Revenue sharing means adding non-investment fees to a fund’s operating expenses. A 12-b1 fee is one example of this. Revenue sharing fees typically pay for things like record keeping.

Not every 401(k) plan uses revenue sharing, and not all investment funds use them either. Revenue sharing tends to be more likely for actively managed funds rather than passively managed funds like index funds.

That means if you have more actively managed funds, you could be paying more than a colleague who has index funds.



💡 Quick Tip: Want to lower your taxable income? Start saving for retirement with a traditional IRA. The money you save each year is tax deductible (and you don’t owe any taxes until you withdraw the funds, usually in retirement).

How Fees Affect Your Retirement Savings Over the Long-Term

401(k) fees can add up over the years, substantially reducing your retirement savings. And one percentage point in the amount of fees you pay can make a big difference.

Case Studies: The Cumulative Effect of Fees Over Time

Let’s say two individuals work for different companies with different 401(k) plans. Person A has a 401(k) that charges 0.50% in fees, and Person B has a plan that charges 1% in fees. If they each invest $100,000 over 20 years with a 4% annual return, 401(k) fees would reduce the value of Person A’s retirement savings by $10,000, while Person B’s retirement savings would be reduced by almost $30,000.

Proactive Measures to Safeguard Your Retirement Funds

In order to minimize the impact of fees on your retirement savings, find out what fees your 401(k) charges. Also, look at the expense ratios for each fund in the plan and choose funds with lower expenses if you can.

In addition, if you leave your job and move to a new employer, you may pay additional 401(k) fees if you keep your old plan with your former employer. And if you’ve changed jobs multiple times and left your 401(k)s with your former employers, then you could be paying 401(k) fees on multiple accounts.

Fortunately, there are steps you can take to avoid these 401(k) fees. You aren’t required to keep your account with your former employer, and you won’t be forced to liquidate it. Instead you could roll over your 401k into your new 401k plan with your new employer, or roll it over into an IRA managed by you.

The benefit of setting up a separate account is that the next time you change jobs, you will automatically have somewhere to rollover your 401(k). With your money in one place, you can more easily see whether you are on track to reach your retirement goals.

The Takeaway

401(k) fees could potentially cost you tens of thousands of dollars or more and substantially reduce your retirement savings. If you have a 401(k), it’s important to learn about the fees charged by your plan. Read over your statements and the plan’s prospectus to find out what and how much these fees are. If possible, choose investment fund options with lower fees to help save money.

And when you leave a job, rather than letting the 401(k) sit with your former employer, consider rolling it over to your new employer’s 401(k) or into a traditional or Roth IRA. One advantage of an IRA is that you will likely have more investment options to choose from and more control of your retirement funds.

Invest in what matters most to you with SoFi Active Invest. In a self-directed account provided by SoFi Securities, you can trade stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, options, and more — all while paying $0 commission on every trade. Other fees may apply. Whether you want to trade after-hours or manage your portfolio using real-time stock insights and analyst ratings, you can invest your way in SoFi's easy-to-use mobile app.


Invest with as little as $5 with a SoFi Active Investing account.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

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