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Re-investing rollover funds
Old 11-19-2015, 11:31 PM   #1
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Re-investing rollover funds

I finally decided to roll over my 401(k) from my last employer into my tIRA. The 401(k) mutual funds are not available outside of the investment firm that manages them. The balance of this account is around 25% of our total net worth (total of our tax deferred plus taxable accounts).

Since I will be investing this money in new mutual funds, is it better to invest all at once or over a period of several weeks or months?
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Old 11-20-2015, 08:03 AM   #2
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I think the conventional advice is if your AA was as desired before, then reinvesting in a lump now is simply maintaining what you had before and would be the preferred action.
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Old 11-20-2015, 09:37 AM   #3
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I plan on doing the exact same thing with my 403b. My plan is to invest all at once.
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Old 11-20-2015, 09:38 AM   #4
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I recently rolled over my 401K into an IRA both with Fido. The 401K was invested in two fidelity funds and two Vanguard funds. The two Fido funds transferred in kind while the Vanguard funds were sold and I immediately repurchased similar Fido funds to keep my AA as planned.
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Old 11-20-2015, 06:55 PM   #5
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Quote:
Originally Posted by Corporateburnout View Post
I recently rolled over my 401K into an IRA both with Fido. The 401K was invested in two fidelity funds and two Vanguard funds. The two Fido funds transferred in kind while the Vanguard funds were sold and I immediately repurchased similar Fido funds to keep my AA as planned.

Just curious on why you did the rollover. I am in a similar situation but plan to leave the 401k in place although I may roll a bit into the IRA to purchase stocks or funds not available within the 401k, megacorp generally has slightly lower ER for popular Fido funds.



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Old 11-20-2015, 07:20 PM   #6
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We rolled my wife's 401K into a new Vanguard rollover IRA to lower our costs. Her plan had a $15 per month administrative fee and fewer funds to choose from. I will start moving my 401K soon to my Vanguard rollover IRA for lower expenses and to use funds that I choose and not a employee committee. You can roll into a stable value account then move into other funds as the spirit moves you.
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Old 11-20-2015, 07:44 PM   #7
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Originally Posted by jazz4cash View Post
Just curious on why you did the rollover. I am in a similar situation but plan to leave the 401k in place although I may roll a bit into the IRA to purchase stocks or funds not available within the 401k, megacorp generally has slightly lower ER for popular Fido funds.
When I retired 18 months ago I had no intention of rolling over my 401K because my former employer's plan had no administrative fees, good Fido and Vanguard index funds selection and also for the added liability protection that 401K plans offer. Unfortunately my former employer recently replaced 3 out of the 4 funds that I was invested in. This was the second change they made since I left and since I liked the funds I was in I decided to do the rollover.

I also found out that rollover IRAs have full liability protection in my state.
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Old 11-20-2015, 08:14 PM   #8
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Originally Posted by Corporateburnout View Post
When I retired 18 months ago I had no intention of rolling over my 401K because my former employer's plan had no administrative fees, good Fido and Vanguard index funds selection and also for the added liability protection that 401K plans offer. Unfortunately my former employer recently replaced 3 out of the 4 funds that I was invested in. This was the second change they made since I left and since I liked the funds I was in I decided to do the rollover.

I also found out that rollover IRAs have full liability protection in my state.

Thanks. Makes sense and very helpful. The liability issue is on my radar screen also. I don't think we have liability protection in my state (MD), but we do have a state tax exemption that applies to 401k withdrawals.



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