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Roll over strategy
Old 09-17-2021, 11:38 PM   #1
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Roll over strategy

Long time listener, first time caller. I finally decided to roll over my 401k from my previous employer. I left that company about 6-7 years ago but I never pulled the trigger thinking that I didnít want to lose the market momentum by basically selling everything in that 401k account and starting over in a new rollover IRA account.

However, I finally pulled the trigger because, as a lot of pundits said, weíre near the peak of the market so I donít mind ďrealizing some gainsĒ and get back to the market at lower cost basis. So I got about $300k sitting in my rollover IRA account and my plan is to buy equal amount in the next 6 months so I can get a better dollar cost average. For this account Iím following Bogglehead principles so each month Iíll buy about $50k with the following breakdown 60% VTI/25% VXUS/15% BND.

What do you guys think about this plan?

Thanks all.
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Old 09-17-2021, 11:53 PM   #2
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Sounds good to me. As long as you like that allocation you outlined, I'd say go for it!
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Old 09-18-2021, 06:26 AM   #3
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I've rolled DW's 403b into a Rollover IRA, in kind. Didn't have to sell a thing. Oppenheimer, half to ML, and half to Fidelity.
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Old 09-18-2021, 07:15 AM   #4
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If the new 401k account has a good yielding Stable Value Fund, it might be worthwhile to keep some monies in the 401k account vs. rolling over into an IRA account.
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Old 09-18-2021, 07:19 AM   #5
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Originally Posted by Dtail View Post
If the new 401k account has a good yielding Stable Value Fund, it might be worthwhile to keep some monies in the 401k account vs. rolling over into an IRA account.
^^^^This!!!
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Old 09-19-2021, 12:23 AM   #6
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If the new 401k account has a good yielding Stable Value Fund, it might be worthwhile to keep some monies in the 401k account vs. rolling over into an IRA account.

Can you elaborate?
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Old 09-19-2021, 01:52 AM   #7
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Do you really want to be out of the market not invested with that much of your rollover funds for that long (5 months on 5/6ths, 4months on 2/3rds etc)?

I did an in-service distribution of most of my current employer 401k and was completely reinvested in my new IRA chosen strategies and AA within about 45 days. That was last July and although there was a dip in October 2020, Iím glad Iíve been fully invested during that time.

Good luck.
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Old 09-19-2021, 05:53 AM   #8
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Can you elaborate?
Some, but not all, 401ks offer stable value funds... sort of like a bond fund or ETF with an interest rate that is periodically set but no interest rate risk... but they often pay an attractive rate of interest in today's low interest rate environment... and you can't get them outside a 401k.

If your 401k has one then it is a great reason to leave money at least equal to you overall fixed income allocation in the 401k.
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Old 09-19-2021, 08:14 AM   #9
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Some, but not all, 401ks offer stable value funds... sort of like a bond fund or ETF with an interest rate that is periodically ser but no interest rate risk... but they often pay an attractive rate of interest in today's low interest rate environment... and you can't get them outside a 401k.

If your 401k has one then it is a great reason to leave money at least equal to you overall fixed income allocation in the 401k.

Got it..I rolled over my old 401k to a rollover IRA not 401k account but I can still check if Fido offer stable value funds. Thanks for the suggestion.
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