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09-17-2021, 11:38 PM
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#1
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Recycles dryer sheets
Join Date: Sep 2018
Posts: 72
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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 didn’t 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, we’re near the peak of the market so I don’t mind “realizing some gains” 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 I’m following Bogglehead principles so each month I’ll 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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09-17-2021, 11:53 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Oct 2007
Location: Willamette Valley, Oregon
Posts: 1,979
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Sounds good to me. As long as you like that allocation you outlined, I'd say go for it!
__________________
Dreams Worth Dreaming are Dreams Worth Planning For. I Spent a Career Planning for Early Retirement.
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09-18-2021, 06:26 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Sep 2014
Location: The Great Wide Open
Posts: 3,779
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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.
__________________
Give me Liberty or give me Death. Patrick Henry
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09-18-2021, 07:15 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,197
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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.
__________________
TGIM
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09-18-2021, 07:19 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,596
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Quote:
Originally Posted by Dtail
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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^^^^This!!!
__________________
Retired May 13th(Friday) 2016 at age 61.
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09-19-2021, 12:23 AM
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#6
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Recycles dryer sheets
Join Date: Sep 2018
Posts: 72
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Quote:
Originally Posted by Dtail
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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Can you elaborate?
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09-19-2021, 01:52 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Aug 2021
Location: Northern NJ/ Jersey Shore
Posts: 1,050
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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, I’m glad I’ve been fully invested during that time.
Good luck.
__________________
Brian
Happily retired in July 2023!
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09-19-2021, 05:53 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,204
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Quote:
Originally Posted by EA-Sports
Can you elaborate?
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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 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.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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09-19-2021, 08:14 AM
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#9
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Recycles dryer sheets
Join Date: Sep 2018
Posts: 72
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Quote:
Originally Posted by pb4uski
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.
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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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