Return to the Household Finances Forum | Post a Follow-Up

 o
401k rollover?

Posted by jasper_60103 (My Page) on
Fri, Aug 18, 06 at 9:54

I changed jobs a couple years ago.

Now, I'm wondering should I rollover my 401K
from previous employer to current one?

I guess another option would be to open up
and IRA.

What do you think would be best? I don't plan on taking any early withdrawals.

thanks,

jasper


Follow-Up Postings:

 o
RE: 401k rollover?

You might find some answers here.

Here is a link that might be useful: Roll Over IRAs


 o
RE: 401k rollover?

I had three 401(k)s from previous employers and I rolled them all over to one IRA, for two reasons: first, even though the money should be separate from the company's money, I didn't want to hear anyone say "oops". They've mucked around enough with my pensions. Second, it's easier to keep track of the investments this way. In the old plans, the offerings were switching frequently ("Starting in October, the SafestHouses conservatively-managed Fund will be transferred to the Lookout Below "opportunity" Fund.") With my own IRA, I can determine where my money is and how to diversify it appropriately.


 o
RE: 401k rollover?

Hey Sue, Steve.
Thanks for the info.
An IRA may be way to go.
I especially like having more investment choices
and being able to keep a close eye on things.

thanks again,
jasper


 o
RE: 401k rollover?

Roll them over to an IRA where YOU cam make your own investment choices rather than the limited choices your company(ies) offer.


 o
RE: 401k rollover?

You do have to be very careful about who's in control of your retirement money. It's not impossible for it to be 'lost', especially if a company is in trouble financially--those funds are not as safe as many people would have you believe, unfortunately. Investigate all your options and choose the one that is safest, where you have the most control.


 o
RE: 401k rollover?

If your old 401K has been performing well, and the company is sound and stable, I'd leave it alone. If you want the ease of all money under one roof, move it into your current 401k...assuming it's a stable company with good management results.

If you do not study investments alot, I would not bother with trying to manage it. Chances are pretty high in my opinion that you'll never get as good results as the pros who make their living managing money.


 o
RE: 401k rollover?

If you do not study investments alot, I would not bother with trying to manage it. Chances are pretty high in my opinion that you'll never get as good results as the pros who make their living managing money.

True, but rolling it over into an IRA at a financial house of your choosing often gives you more options: for example, lifestyle-geared investment plans (more aggressive for younger clients, more conservative for when you don't have time to make up a bear market); index funds (more than just the Dow Jones or S&P 500); etc. There are lots of people who can offer easier investment strategies ("couch potato" portfolios, "one-minute" investing, ...) and while one size does not fit all investors, if you find an investment approach that has appeal to you, it very likely will be easier to pursue it at a large investment house than through an employee-sponsored plan.


 o
RE: 401k rollover?

Steve, Sue:
just wondering did you use a financial planner for setting up your IRA?
I had spoke with one from a reputable firm, but he seems so insistent that I need him to manage my entire financial portfolio (for a fee of $700 for starters).
I didn't appreciate his hard sell and would never do business with him.
I guess he just rubbed me the wrong way.
Thanks again for the advice.
-jasper


 o
RE: 401k rollover?

I did not. I went with a firm known for their integrity, their variety of mutual-fund offerings, and their low expense ratio, and I read various sources to develop a consensus about how best to invest my money. I wouldn't waste a minute of my time with anyone who was not content with however much business I would give him/her or who was paid through the funds, etc., that he/she was promoting. There are too many people out there offering financial advice to put up with anything or anyone you don't like. If you can, try to get some recommendations for "fee-only" financial planners; while you'll have to pay them up front, you can feel better that they're not unduly influenced by winning a trip to Hawaii for pushing a certain fund or investment vehicle.


 o
RE: 401k rollover?

Yeah, I have a neighbor who works for an accounting firm downtown minneapolis. I'll try to talk to him.

Hey, enjoy the state fair.

thanks,
jasper


 o
RE: 401k rollover?

"Steve, Sue:
just wondering did you use a financial planner for setting up your IRA?"

Most of my money is with the company I gave you the link to. I have IRAs, 401k and a brokerage account with them. I use a regular bank for banking. I don't use a financial planner.


 o
RE: 401k rollover?

Thanks Sue.


 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!


Return to the Household Finances Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.


Learn more about in-text links on this page here