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RE'd Now what to do with my 401K
Old 09-12-2007, 07:29 PM   #1
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RE'd Now what to do with my 401K

In my second week of retiring early (and loving every minute of it!) I am wondering what to do with my 401K that is with Fidelity. The portfolio is about 500K. Here's my situation:
I have about 600K in investments with New York Life. I have known my agent for over 25 years. He has always been straight with me and given great advice. He knows me well and I trust him very much. I am thinking of rolling the Fidelity 401K over to NYL into an IRA or ??.
I have been talking to a Fidelity rep who had a custom prepared analysis booklet done for me that included my 401K as well as all my NYL investments. The projections look good rolling the 401K into Fidelity IRA's or ? investments. However the rep is starting to seem anxious even though I told him I don't move too fast on these things. I can leave the 401K where it is at, but the investment choices are limited.
I don't think I will need to tap any money from the 401K for about 3 years.
I am looking for "food for thought" to help make the best choice of what to do. With the great folks on this board, any thoughts will be greatly appreciated (Be nice).
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Old 09-12-2007, 08:17 PM   #2
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I once found the wallet of a NYLife agent. When I returned it to him, he tried to sell me life insurance.

You have come to a forum of do-it-yourself investors. I would hope that the preponderance of responses that you get will be along the lines of:

Do-it-yourself. Roll over EVERYTHING to a low cost provider like Vanguard that matches the asset allocation that you desire. Don't know about asset allocation? Read some books on asset allocation.
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Old 09-13-2007, 04:40 AM   #3
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Consider Vanguard for the rollover.


IMHO - While you are at it, consider dumping NYLife and roll those assets to VG also. Who would you rather pay your agent or yourself? Fido is supposed to be a good company... But VG is typically lower cost.

Look at it like this, you can pay your agent or fund a vacation (maybe two) for yourself every year. If you save just 1% using VG... that is $6k you keep (based on $600k at NYLife).
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Old 09-13-2007, 07:54 AM   #4
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I agree with the do it yourself advice. However you are fine using Fidelity. They have plenty of low cost index funds. Do some reading. Below is a pretty good web site.

The Coffeehouse Investor
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Old 09-13-2007, 09:01 AM   #5
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Quote:
Originally Posted by Dawg52 View Post
I agree with the do it yourself advice. However you are fine using Fidelity. They have plenty of low cost index funds. Do some reading. Below is a pretty good web site.

The Coffeehouse Investor

Great book, I'm about 2/3 of the way through it, and have found it to be a REAL eye opener. I wholeheartedly agree with those telling you to do it yourself, but I understand that sometimes you want someone there that you know and trust making sure you don't make mistakes. I agree though with those who don't think that's worth 6k a year. There are multiple resources (this one by far the best) that will walk you through most decisions, and give you excellent, unbiased advice for free. And these folks are funding an ER as well so you can be sure they know what they're talking about. Just my .02
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Old 09-13-2007, 09:08 AM   #6
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Are you over 59?

These is an advantage of keeping, and using your 401K before 59 without pentality.

Otherwise, rollover and invest wisely.
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Old 09-13-2007, 09:37 AM   #7
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Quote:
Originally Posted by settam View Post
In my second week of retiring early (and loving every minute of it!) I am wondering what to do with my 401K that is with Fidelity. The portfolio is about 500K. Here's my situation:
I have about 600K in investments with New York Life. I have known my agent for over 25 years. He has always been straight with me and given great advice. He knows me well and I trust him very much.
Are you ready to DIY or are you hesitant? That is the first question to ask...........

Quote:
I have been talking to a Fidelity rep who had a custom prepared analysis booklet done for me that included my 401K as well as all my NYL investments. The projections look good rolling the 401K into Fidelity IRA's or ? investments. However the rep is starting to seem anxious even though I told him I don't move too fast on these things. I can leave the 401K where it is at, but the investment choices are limited.
I don't think I will need to tap any money from the 401K for about 3 years.
Don't be in a rush to make a snap decisions.........
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Appreciate the great comments
Old 09-14-2007, 11:14 PM   #8
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Appreciate the great comments

A big THANKS to all for the great replies regarding what to do with my 401K now that I just retired at age 60. I now have a sense of direction of what I need to do.
Thanks for the recommendation of "The Coffehouse Investor" book and website. I ordered the book.
And yes, $6K in my pocket is much better that my NYL agents' pocket.
Again, thanks! You all have really helped me.
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