401 k transferring to vanguard

[Helpinvesting]

Hi

I have been receiving lots of advice from here, but I'm still confused.

I have $5600 on etrade 401k and would like to grow the money if possible.

I will call them but I don't know what to ask, I was told to xfer it to vanguard Mutual funds or to
Total stock market índex fund

Or to transfer it to a good low cost mutual fund company like Fidelity if etrade doesn't have a comparable option.

But ... What's the process ? I ll etrade and withdraw the money ?

Please help


Appreciate it !!!!!

[disneysteve]

You don't have to move the money if there are investment options at etrade that you are happy with. The reason most of us recommend Vanguard or Fidelity is because those are among the top companies in the field and that's where many of us have our own investments (between my wife and I, we currently have over 450K at Vanguard). They both have very low expenses and excellent customer service.

If you stay with etrade, you want to be sure you are investing in a no-load mutual fund with no transaction fees (you can set those criteria when you search on their website).

If you do want to transfer the money from etrade, you don't need to call them. You would call Vanguard or Fidelity directly (vanguard.com or fidelity.com) and they will be happy to walk you through the rollover process.

[scfr]

Is eTrade the 401K provider of your current employer? If "yes," then the first thing you need to do is check to see if you are allowed to transfer the funds. You may not be allowed to.

[Helpinvesting]

Thank you

My e trade is the 401k from my last employer.

What are good non load mutual funds ?


Thank you for all of the advices.

[disneysteve]

I have $5600 on etrade 401k

My e trade is the 401k from my last employer.

Just to clarify terminology, because it's important, you no longer have a 401k. What you have is a rollover IRA. There is a big difference between the two, especially if you do call another company to transfer the funds.

There are hundreds of good no load mutual funds. It really depends on what you're looking for, what your asset allocation is, and what the rest of your portfolio looks like. It also depends on your age and risk tolerance.

Without knowing any of that, you want a no load, low cost, equity index fund. That's why I mentioned Vanguard Total Stock Index earlier. That gets you broad diversification with very low expenses. Another option would be a target date retirement fund which is one fund made up of holdings in several other funds. The allocation automatically adjusts over time to become more conservative as you approach retirement.

[Helpinvesting]

Thank you so much Steve.. You are very patient !

You really know about this, you help a lot !

[disneysteve]

Thank you so much Steve.. You are very patient !

You really know about this, you help a lot !

You're welcome. My pleasure. Lots of helpful folks here ready and willing to help.