I'm retired almost 3 months now and I have been working on a plan to roll my large 401k balance into my IRA. I automatically figured that was the best choice for me as I would have many more investment options at a lower cost. I don't intend to touch these funds for many years, so the pre-59.5 withdrawal tax issues aren't important to me.
Over the last few days, I have compared returns from each of the funds I currently own in my 401k to an index or a similar ETF index fund. I found that the actively managed funds in my 401k are beating their indices (or the ETF I would use) in most cases over 1, 3 and 5 years.
So the question is, am I missing out on anything by leaving the funds in the 401k? It's been drilled into me for so long that actively managed funds just don't consistently beat their benchmarks, but apparently most of these do (they include some TRP funds, American Europac, PIMCO and Mainstay Large Cap - almost all have expense ratios under 1%). Thoughts?
Over the last few days, I have compared returns from each of the funds I currently own in my 401k to an index or a similar ETF index fund. I found that the actively managed funds in my 401k are beating their indices (or the ETF I would use) in most cases over 1, 3 and 5 years.
So the question is, am I missing out on anything by leaving the funds in the 401k? It's been drilled into me for so long that actively managed funds just don't consistently beat their benchmarks, but apparently most of these do (they include some TRP funds, American Europac, PIMCO and Mainstay Large Cap - almost all have expense ratios under 1%). Thoughts?