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Keep 403(b) in American Funds, or move to Fidelity?
Old 02-16-2008, 08:09 PM   #1
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Keep 403(b) in American Funds, or move to Fidelity?

I have about $120k in a 403(b) started through my former employer. I have recently started a new job, and am trying to decide whether to move the funds over to the new retirement plan I will be starting at Fidelity. The new employer only allows us to make new contributions to target retirement funds (I'm looking at the 2030 fund, though I may FIRE well before that -- comfortable with a higher ratio of stocks for now), but once I have the account opened I think I can use the rollover funds to buy a broader mix of funds. American Funds have done reasonably well for us, but I have never been thrilled about them and find it hard to work out a good asset allocation mix. DH is still at the old employer, and will continue to invest in American Funds through his 403(b).

Any advice/suggestions/comments from those who have worked with both companies?

lhamo
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Old 02-17-2008, 03:27 AM   #2
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Why not roll over your 403B to a self directed IRA at Fidelity, Schwab or Vanguard.

A single target retirement is not a very good option if you are at all comfortable with invested (but great for the rest of the world.) The main problem with American funds is the front end load, which you probably avoided in a retirement plan. (hopefully!)

The lack of a long term track record for any of the target retirement funds makes me leary of using them.
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Old 02-17-2008, 12:00 PM   #3
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I can't see a downside to rolling over to Vanguard IRA - low ERs, wide choices of funds, good website and phone assistance.
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Old 02-17-2008, 01:27 PM   #4
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I agree that your best choice is rolling over all of your AF $ to Vanguard. Better funds, lowest ER.
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Old 02-17-2008, 01:35 PM   #5
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I'm counting the days until I can rollover my 401k (at Fidelity) to a Fidelity IRA. It's stuck in the 401k until my separation pay ends (which is not a bad problem by itself.) My AA should look a lot better when I have access to more funds.

Dan
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Old 02-17-2008, 08:54 PM   #6
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Quote:
Originally Posted by mickeyd View Post
I agree that your best choice is rolling over all of your AF $ to Vanguard. Better funds, lowest ER.
Lowest ER I agree with....better funds? Not always.........
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