If you were downsized and don’t know the first thing about 401(k) rollovers, never fear.

Figuring out COBRA and pension plans may have been enough of a headache so this may have slid into last place on your to-do list. Quite honestly, based on my research it sounds like it should be the first. For the inside scoop I checked in with Jeffrey R. Wylde, a New York City-based financial advisor/guided portfolio manager at MorganStanleySmithBarney LLC http://fa.smithbarney.com//jeffreywylde.

*First things first: upon your termination liberation (let’s face it, not every downsizing is a bad thing, ‘k? Time to dance to the beat of a new drum!), your 401(k) can be rolled out of your former employer’s jurisdiction and moved into the custody of a different firm. He explains, “I would recommend moving one’s 401k investments to cash in the week after termination so the account will not be subject to market fluctuations while one is tying up loose ends and dealing with being out of work, etc…people often tend to forget about their 401k’s because contributions are automatic and the accounts are so long-term.  So, having it sitting in cash should help act as a catalyst for getting people to follow through with rolling over their plan.” Plus, he notes, “In a tax deferred account with a long lifespan, cash is most definitely not king.”

*As for the advantages to rolling it out instead of having it sit idle? Jeffrey adds there’s more control of the investment process and access to numerous investment products. Most of all, “getting out from the spyglass of one’s former employer.”

*So, how do you start the process and better yet, when should you do it? The former employee (ahem, you!) will need to initiate it but just like moving out of an apartment, you’ll need to find new digs before you go ahead and uproot yourself.  “Since they will need a place to move it to, they’ll need to open an account some place else first.  I am happy to help people do this.”

*Lastly, for the million dollar question as to selecting an advisor to work with and ultimately trust? Jeffrey tells people to go with their gut. “If you get a good feeling from him/her and they seem trustworthy and knowledgeable, then you are probably on the right path.”

*Buyer beware, though. He recommends steering clear from people who sell performance. “In this business, wisdom definitely comes with experience and time of service, so I would recommend working with someone who has more than five years in the business.  The relationship really is more like a partnership, and full disclosure is necessary for the most beneficial partnerships, so you really are better off with someone who makes you at ease that you can trust.  This sounds obvious, but you’d be surprised how many subpar advisors there are out there.”

- By Vicki Salemi

Author of Big Career in the Big City: Land a Job and Get a Life in New York (coming this spring!), Journalist, Career Consultant

www.vicksalemi.com