Roll Over To Where

[sundance]

I am going to move money from my previous employer to one of the Target Retirement Accounts. My husband has his with Vanguard & I thought I would mix it up and use TRowe but then I noticed Fidelity was doing even better!! Have done some reading and I am still feeling indecisive. I am 57, work part time and will take mandatory distributions when I am 70.5. By the way I have an OLD IRA with Fidelity Contra Fund. Some thoughts. Thank U

 

[Alan]

FWIW, I rolled over mine to Vanguard and DW rolled hers over to Fidelity, in both cases to target retirement funds.

 

[sundance]

I retired at 48 and I am now 57. Did she think about Trowe and what made her pick Fidelity?

 

[Cheesehead]

Hmmmm....I am afraid of TDFs especially after reading Boston University Economics Professor Zvi Bodie's books. Check out this article before doing this:

Unsafe at Any Speed? The Designed-In Risks of Target-Date Glide Paths

And read #8 of this PDF:

http://zvibodie.com/files/JFP-Zvi_Bodie_10_Questions.pdf

You'll see that Professor Bodie, like myself, doesn't trust Wall Streets (past) numbers which is why it is hard to have faith in any of the Monte Carlo calculators since it is a matter of "luck" as to where the market is when you retire and if there's a crash early in your retirement. You'll see he's ultra conservative and believes in bonds.

So I have decided I have to learn much more about my AA. Using the mutual fund industry's marketing gimic of target date funds seems dangerous because it is too heavily weighted in stocks. I have two kids in their twenties that know nothing about investing so it may be good for them but way too dangerous for someone my age of 59. Just my thought. Good luck

 

[ronocnikral]

I wouldn't make a decision based on past performance. Any of the places you mentioned are fine. I like to invest with just one to keep it simple. IMO, there is no risk advantage to multiple brokers.

Is It Safer to Use Multiple Fund Companies?

If you do decide to chase performance, be careful rolling over too many times in a year. It is a no-no.

Also, if you have adequate enough money, you can construct a target date fund yourself and save some money. I can't remember the exact numbers, but Vanguard wants a little less than 0.2% fee on a target date, while it can be constructed (and tilted however you like) for less than 0.1% using admiral funds. Of course, if you have a heavy tilt to international, you'll be a bit more expensive.

 

[Midpack]

I had good luck with Vanguard, Fidelity & Schwab, so I haven't had to look any further. I have always chosen who to invest with by deciding what I wanted to own first (immediately and in the foreseeable future) and then going to the brokerage that offered every fund or other asset type that I wanted at the lowest cost, and with the best reputation. Picking a brokerage first seems like the wrong place to start IMO...

 

[Alan]

I retired at 48 and I am now 57. Did she think about Trowe and what made her pick Fidelity?

When she first started working in the USA she opened a SEP-IRA with Fidelity as recommended by a friend, so 18 years later when she retired Fidelity was a natural choice for her as she had had good service from Fidelity, and where we were moving to was within 3 miles of a Fidelity office (which we have never actually used).

 

[Gill]

By the way I have an OLD IRA with Fidelity Contra Fund.

I'd roll it into your Fidelity IRA. Why create unnecessary accounts?
Bruce

 

[obgyn65]

Are you considering rolling into an annuity ?

I am going to move money from my previous employer to one of the Target Retirement Accounts. My husband has his with Vanguard & I thought I would mix it up and use TRowe but then I noticed Fidelity was doing even better!! Have done some reading and I am still feeling indecisive. I am 57, work part time and will take mandatory distributions when I am 70.5. By the way I have an OLD IRA with Fidelity Contra Fund. Some thoughts. Thank U

 

[sundance]

Definitely no annuity, as we both are so fortunate to have pensions. Our 457 plans offered index funds. My husband rolled his over to Vanguard and did "The Wellington Fund and a couple of sector funds and cash. I will probably do Trowe and try their slice & dice managed target funds. I am looking for growth. I know their will be risk. 70/30

 

[Animorph]

Vanguard is the baseline choice. Fidelity had some weird stuff in their TD's, but I think they've been cleaning them up and watching expenses a little better. Which is one big reason why past performance may not be valid. I haven't followed TRP at all. Look what's in the funds you might like. Pick dates that match with % of bonds. Research their endpoint bond %'s as well.

 

[Birchwood]

Any of those is fine.
I have my main bulk with Vanguard and Fidelity.
Now I'm putting more money to T. Rowe Price.
I don't rely on past performance, I just want it spread a little wide.

 

[rescueme]

FWIW, I rolled over mine to Vanguard and DW rolled hers over to Fidelity, in both cases to target retirement funds.

I would agree to Alan's comment.

You don't have to roll over to just one firm.

While DW/my retirement assets are split primarly between FIDO/VG, we don't hold allegiance (e.g. "fidelity") to either, or any other company we are invested with.

There is no rule that says you must only invest with one (management) company.

Just my simple POV.

 

[rescueme]

Definitely no annuity, as we both are so fortunate to have pensions.

I would agree (and I/DW have a joint SPIA).

While DW has two small pensions (e.g. defined benefit plan), I do not (other than my small VA disability income).

Annuities (speaking specifically of SPIA's) should only be consided based upon your "total retirement income" sources.

There are other considerations, but I won't go into it here; it's not part of the question of the OP...

 

[friar1610]

I think T. Rowe Price is a fine company. I used to have a few funds with them. I haven't checked lately, but their expense ratios used to be a fair amount higher than VG and Fido. That could be a tiebreaker.