Roll over 401k

[EA-Sports]

Hi all, I have about $260k left with my previous MC 401k plan managed any Alight. It’s made up of target date fund (45%) and the rest is combination of large cap, mid cap, small cap, international and bond funds. I left that MC about 6-7 years ago and now I think I need to roll it over to Fido where I have my current 401k, roth and another roll over from a different employer.

Questions I was hoping you guys could help me:
1. Can I have 2 different roll over IRA with Fido? I want to be able to track them separately if possible.
2. Now that I know about boggle head investment I think it makes sense to try to emulate boggle head principle for this rollover account. Questions are: buying Vanguard funds on Fido will incur transaction fee but considering that it’s only $75/transaction and I’m rolling over a big amount do you think it makes sense to just eat the one time cost or find Fido equivalent to avoid the transaction cost?
3. If it’s better to off to invest in Fido equivalent here’s what I think are the equivalent:
VTSAX - FSKAX
VTIAX - FTIHX
VBTLX - FXNAX
Did I get the equivalent Fido funds right?

Thanks all.

 

[jazz4cash]

I’m interested to hear if you can have more than one rollover IRA at Fido. I can think of a few cases where it would be useful. I would lean towards finding equivalent funds at Fido that are no transaction fee funds. That will be easy in the case of index funds and target date funds.

 

[Dtail]

On a separate note, do you have a Stable Value fund in your 401k?
These funds can have attractive yields with low risks and are not typically found outside of 401k's.

 

[PaunchyPirate]

If you truly want the Vanguard investments, does Fidelity allow you to buy the ETF equivalent without the fees?

Also, keep in mind that if you have more than one IRA account, when it comes time for RMDs you need to calculate your total RMD across all IRAs and then decide which account(s) to pull it from. That’s too much work for me. I much prefer my single rollover IRA which is a result of five 401k rollovers.

 

[EA-Sports]

If you truly want the Vanguard investments, does Fidelity allow you to buy the ETF equivalent without the fees?

Also, keep in mind that if you have more than one IRA account, when it comes time for RMDs you need to calculate your total RMD across all IRAs and then decide which account(s) to pull it from. That’s too much work for me. I much prefer my single rollover IRA which is a result of five 401k rollovers.

Didn’t think about the RMD aspect of it. Maybe I should keep all roll over in 1 account.

Also, you’re right I can always go with their ETF equivalents (I.e., VTI, VXUS and BND).

 

[RetireBy90]

Just curious, why would you want a separate IRA ? I merged 3 into one for me and 2 into one for DW. Just easier for me.

 

[MRG]

I’m interested to hear if you can have more than one rollover IRA at Fido. I can think of a few cases where it would be useful. I would lean towards finding equivalent funds at Fido that are no transaction fee funds. That will be easy in the case of index funds and target date funds.

Yes you can. I rolled over Megacorp's 401k fifteen years ago and just received a small settlement from Megacorp that was in another 401k. I kept them separate because I wanted to do some pretty aggressive strategies and didn't want to have any temptations like "what could possibly go wrong ".

 

[KCGeezer]

I kept my lump sum retirement payment separate from my 401k rollover mostly for mental accounting. We’re living off the smaller IRA and letting the lump sum IRA grow for when the ‘401’ money (or I) am gone. Roth conversions go in a relatively new account as something for the kids, or access to tax free money should we decide to do something ‘unplanned’.

Guess it’s somewhat of a bucket approach. Each has a slightly different tilt but it all comes out to my preferred AA. Mental accounting but it works for me.

 

[OldShooter]

One caution: I used to recommend "target date" funds as if they were all the same. Then I looked below the surface.

The proportions of equity and fixed income vary quite a bit from fund to fund. Some providers have only two or three steps, for example 10% fixed income until 10 years from target and 20% equity after target. Others have fairly smooth slopes. It's probably more a matter of taste which you choose, but you should make the effort to know what ride you're on.

The equity portion can be either held in a broad index fund or managed by stock pickers. I strongly suggest the index fund option because the nature of the fund smooshes together the equity and the fixed income results, so there is no easy way to evaluate the stock pickers' performance. Here's a horror story that's germane: Reuters/FIdelity: https://www.reuters.com/article/us-...ers-on-risky-path-to-retirement-idUSKBN1GH1SI

(Actually, I don't buy any blended funds because I want to separately see the equity tranche performance and the fixed income tranche performance. I never mix the green Kool-Aid with the red.)

Finally, there's no particular reason to match your planned retirement date to a fund target date. If you want a more aggressive portfolio, pick a later target date and vice-versa. You also don't have to stick to one fund for the whole ride.

 

[teetee]

ETFs in fido does not support auto investment.

There is no better time to consolidate accounts during the retirement account conversion.

 

[Seattleite]

Hi all, I have about $260k left with my previous MC 401k plan managed any Alight. It’s made up of target date fund (45%) and the rest is combination of large cap, mid cap, small cap, international and bond funds. I left that MC about 6-7 years ago and now I think I need to roll it over to Fido where I have my current 401k, roth and another roll over from a different employer.

Questions I was hoping you guys could help me:
1. Can I have 2 different roll over IRA with Fido? I want to be able to track them separately if possible.
2. Now that I know about boggle head investment I think it makes sense to try to emulate boggle head principle for this rollover account. Questions are: buying Vanguard funds on Fido will incur transaction fee but considering that it’s only $75/transaction and I’m rolling over a big amount do you think it makes sense to just eat the one time cost or find Fido equivalent to avoid the transaction cost?
3. If it’s better to off to invest in Fido equivalent here’s what I think are the equivalent:
VTSAX - FSKAX
VTIAX - FTIHX
VBTLX - FXNAX
Did I get the equivalent Fido funds right?

Thanks all.

Did a recent Roll Over at Fido from my 401k, bought all Vanguard Funds, in the Transaction cost column it said zero.

 

[CRLLS]

If you truly want the Vanguard investments, does Fidelity allow you to buy the ETF equivalent without the fees?

Also, keep in mind that if you have more than one IRA account, when it comes time for RMDs you need to calculate your total RMD across all IRAs and then decide which account(s) to pull it from. That’s too much work for me. I much prefer my single rollover IRA which is a result of five 401k rollovers.

I'm fairly certain that Fidelity will provide you with the required RMD's for all of your combined IRA's that they have under their umbrellas. I seem to recall seeing that somewhere on their website. I'm not sure if they can give you a "total" RMD amount if you have IRA's with another investment firm.

 

[The Cosmic Avenger]

I'm fairly certain that Fidelity will provide you with the required RMD's for all of your combined IRA's that they have under their umbrellas. I seem to recall seeing that somewhere on their website. I'm not sure if they can give you a "total" RMD amount if you have IRA's with another investment firm.

That's correct, I have two inherited IRAs, and Fidelity calculates the RMD for each and lets me set it to automatically withdraw and deposit them on a set date (or separate dates, if I felt the need). Technically I could take more or all from just one account, if I wanted to, but I'm taking the RMDs as Fidelity presents them to me, because it's easier. But I did have to set up an RMD "plan" for each, I just usually have them set to the same day and the same deposit account. And I've moved it around, too, like suspending it last year. As a UX/UI web person I think they could make it easier, but it's certainly easier than doing it manually.