Quote:
Originally Posted by F32Fleet
Quote:
Originally Posted by bimmer456
Quote:
Originally Posted by F32Fleet
Quote:
Originally Posted by bimmer456
IRA is the way to go don't move it to your current employers 401k.
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Hmm...It depends on the 401k. IMO. |
You can purchase the same mutual funds in the 401k in an IRA. But you cannot purchase any mutual funds not in the 401k or individual stocks with a 401k. Seems like the IRA is better. I have unlimited free trades in my IRA. You do have higher contributions limits with 401k but that doesn't apply to rollovers, you can roll over as much as you want. (Rollover doesn't count towards contribution limits) |
Ya, not a fan of that approach. I'd rather segregate 401k away from "the casino".
However, I can see why it would be advantageous for someone who is young and/or has poor investment options with the 401k of their new employer. |
You could just have the money in an IRA and put it into more conservative mutual funds and some more aggressive ones just like with the 401k but you have more investment options beyond that and can manage your own portfolio or pay someone to do it. I'm not that young but I like to be more aggressive in my investing as I'm not retiring anytime soon and the market is doing very well at the moment. I invest in the more aggressive mutual funds in my 401k plan but can't match the returns in my IRA. At best I'm getting maybe 25% return on the 401k vs. about 130% in the IRA, but of course I can lose money too, in both cases.