boring 401k/retirement ?

[jay929]

so in a nutshell i already have a roth ira with a major institution and i have a old 401k from my old job waiting to be rolled over somewhere.
i don't want to roll it over into my new jobs 401k. Is it foolish to roll it over into a traditional ira with the same instiution? I want a traditional and roth ira but just now sure if i should have all my money with one place?
thanks,

jason

 

[RedCorvette]

Base it on which one has better investments and lower costs.

 

[MNgopher]

You can roll over an old 401k into a traditional IRA with no penalties. You have to weigh out if the old 401k has better options and or fees than rolling it in to an traditional IRA at the same institution. Reality is you can take it anywhere - don't restrict yourself to the same institution jut because you know it.

 

[carwreck]

Rollover across different institutions is a lot more work for you. You have to exchange mutual funds to a money market fund before rollover to another institution.

Some 401K plans have an advantage over IRA for IRS withdrawal rules. You can borrow from 401K for major purchase such as a house, or take any partial distribution without penalty after age 55. You cannot borrow from IRA/Roth IRA, and the amount for no-penalty withdrawals from age 55 to 59 is limited by IRS rules.

 

[Pablo]

Just roll it into a self directed IRA of your choice. I use Fidelity. I don't exactly love their funds, but my money is in a brokerage account, so I can choose just about anything and the fees for Gold accounts are low.

It does depend on what you will be choosing for investments in the future. If you just want to stick with mutual funds, then Vanguard might be better. If you want straight stocks and such there are a variety of super deep discount brokers.

 

[Hokiefyd]

Originally Posted By: jay929
so in a nutshell i already have a roth ira with a major institution and i have a old 401k from my old job waiting to be rolled over somewhere.
i don't want to roll it over into my new jobs 401k. Is it foolish to roll it over into a traditional ira with the same instiution? I want a traditional and roth ira but just now sure if i should have all my money with one place?


This is exactly what I have done. I have a Traditional IRA and a Roth IRA at USAA, and roll all my 401(k) accounts into one of these (whichever is appropriate depending on the type of 401(k) account) when I change jobs. I can do pretty much anything I want with the money because it's in a cash brokerage account. I can invest in individual equities if I want or invest in mutual funds or index funds, etc.

 

[Tim]

I am at this point now....trying to decide where to go.

My 401(k) is a work plan with Fidelity. I will roll my lump sum pension distribution into the 401(k), then will roll the whole mess into a traditional IRA. I am not quite 55, and plan to go back to work for at least a couple years.

I plan to invest this pile into solid dividend payers (WHZ, PBI, SDRL, LINE, VOD, BTE, EXC, LEG, MO, DOW, CLF) and just let it ride, eventually using the dividends to live off of. So I really am not worried about $7.95 trades vs $9.95 trades...

Based on the research I have done so far, it seems like I could stay with Fidelity, go with Vanguard, TDAmeritrade, ETrade, Schwaab, USAA, etc and probably never know the difference.

Am I missing something, or is it true that most of these large outfits are essentially undifferentiated? To me, they all seem to offer the same services....and I am probably not what you would consider a nit-picky type super-user customer.

Tim

 

[Pablo]

Originally Posted By: Tim

Based on the research I have done so far, it seems like I could stay with Fidelity, go with Vanguard, TDAmeritrade, ETrade, Schwaab, USAA, etc and probably never know the difference.

Am I missing something, or is it true that most of these large outfits are essentially undifferentiated? To me, they all seem to offer the same services....and I am probably not what you would consider a nit-picky type super-user customer.

Tim


That's a good thing. Boringly good. Stick with Fidelity unless they give you a reason to leave.

 

[Turk]

Originally Posted By: Pablo
Originally Posted By: Tim

Based on the research I have done so far, it seems like I could stay with Fidelity, go with Vanguard, TDAmeritrade, ETrade, Schwaab, USAA, etc and probably never know the difference.

Am I missing something, or is it true that most of these large outfits are essentially undifferentiated? To me, they all seem to offer the same services....and I am probably not what you would consider a nit-picky type super-user customer.

Tim


That's a good thing. Boringly good. Stick with Fidelity unless they give you a reason to leave.


+1.

Same here, Tim. I'm 51 & want to retire in a few years. Mine are: LINE, MCD, ETP, INTC, PG, COP, PSX & CAT. Fidelity New Markets Income (FNMIX)

, Fidelity High Income Fund (SPHIX), & Pimco Income Fund (PONDX).

Try this: Mention to Fidelity you are thinking about moving it out and see if they'll set you up with some free trades as incentive to stay. I had a chunk there, moved some out and after a disappointment, I moved it back in. Fidelity gave me 100 free trades!

Ask them!

 

[Tim]

Thanks for the encouraging words guys...

Maybe I will try to squeeze Fidelity.

 

[Mr Nice]

tpitcher,

So you plan on holding those stocks picks but for how long ???

I'm a long tern investor not a jittery day trader trying to capitalize on a few crumbs here and there...

 

[Turk]

Originally Posted By: LT4 Vette
tpitcher,

So you plan on holding those stocks picks but for how long ???

I'm a long tern investor not a jittery day trader trying to capitalize on a few crumbs here and there...




Most everything I own now will be held until I die as they're dividend paying stocks.

The checks will keep coming & coming...

 

[Mr Nice]

Yep, dividend paying stocks are a reassuring for a person trying to play it safe.

 

[morris]

get a hobby that you have never done. i recommend radio control. i like RC trucks. they have easy ones, or hard ones. i really get a kick out of modding RC trucks. you can go low cost, or more expensive. you meet the nicest people.

 

[dparm]

Originally Posted By: RedCorvette
Base it on which one has better investments and lower costs.



Bingo.