Cashing in 401k???

[reubenray]

In a month I want to move my 401k somewhere that will earn something and be safe. I already have a financial adviser (for years), but am looking at my options for this $$.

Any ideas?

[rodi]

I think most folks are going to suggest rolling it to someplace with low cost index funds and low fees.
Vanguard, Fidelity, Schwab all seem favored. (Slight trade offs of customer service vs fees.)

Read about a couch potato portfolio... figure out your asset allocation... invest your AA percentages and rebalance periodically.

Lazy Portfolios - Bogleheads

[Independent]

Quote:

Originally Posted by rodi I think most folks are going to suggest rolling it to someplace with low cost index funds and low fees. Vanguard, Fidelity, Schwab all seem favored. (Slight trade offs of customer service vs fees.) Read about a couch potato portfolio... figure out your asset allocation... invest your AA percentages and rebalance periodically. Lazy Portfolios - Bogleheads

Yep, I used Vanguard.

[gerntz]

Quote:

Originally Posted by reubenray In a month I want to move my 401k somewhere that will earn something and be safe. I already have a financial adviser (for years), but am looking at my options for this $$. Any ideas?

Why are you looking for the options if you're paying the FA? Isn't that what you pay them for? Typically, safe & higher earning potential are opposites.

[pb4uski]

I would ditch the FA (and their cost), go with Vanguard, go through their financial planning process ($250 or complimentary depending on the amount of assets you have to invest) and see what they recommend.

[samclem]

Take the time to get comfortable with investing and then ditch the FA. It won't take long, and you'll probably come out well ahead by doing this.

If you want some suggestions about investing your 401K funds, folks would probably want to know a bit more about your other investments, your age, when you hope to retire, any other sources of retirement funds (pension, SS, etc). Your 401K money is one part of a bigger picture, and can't be considered in isolation.

[growing_older]

Be careful how you do this. You can roll 401k to a new 401k or to an IRA, but if you take the money directly you may create problems that are hard to unwind and cause a taxable event.

[reubenray]

I use to do my own investing, but it got to time consuming. This is when I gave it to my FA. We have always kept a certain amount separate in a MMA for our mad money and most likely still will.

It is possible that I may just leave it where it is also. I don't know what the requirements and fees are for doing this. I do know I will not take anything that will make me pay more taxes. They have been taking 28% for years.

[RunningBum]

Your investment choices are limited with the 401K, and I can almost guarantee the fees are higher than what Vanguard or Fidelity have on their funds. Check out the expense ratio on the funds in your 401K and compare them. High fees are a big drag on your account for being lazy and keeping it where it is.

And by all means, do not "cash out" your 401K. Roll it over directly to an IRA to make certain you don't pay taxes. Both Vanguard and Fidelity should have rollover kits to handle this, and you can call them with any questions.

[rbmrtn]

Also consider that you do not have to move it all. It depends on what investment choices you have in it, many are not good and the fees can be high. But I did not move mine when I left megacorp because:

1) they use TRowe price, decent selection, low cost funds
2) I can buy company stock no fee. It's a utility company, nice dividend with a pass through option.
3) The stable value fund continues to earn ~4% return through all the market turmoil since 2008. You can't a stable value fund outside a 401K that I know of.

[rescueme]

Quote:

Originally Posted by gerntz Why are you looking for the options if you're paying the FA? Isn't that what you pay them for? Typically, safe & higher earning potential are opposites.

I had the same thought, reading the OP's original post.

[reubenray]

As per my original post I am just looking at other options. There is no way to know what options there are besides my FA without asking.

[plex]

I also think stable value is the one type of fund that employer plans have that IRA's don't that is worth holding. Usually for any other type of fund you are better off with Vanguard. I say usually, because people with access to the federal TSP have a better option than Vanguard.

[reubenray]

For the time being I have decided to leave my 401k plan where it is (Ascensus/Oppenheimer). The year to date return is over 17%. I can also move my $$ to whatever funds I want in the plan.

I believe I can leave it there for a year before converting it to something else.