Rolling over my 401K and ETFs vs Mutual Funds

[deadgoon]

I have a 401K account with a previous employer. The investment options are limited to only 6 different funds in that account so I am looking to roll this money into a traditional IRA. I already have a small Roth at Sharebuilder and was thinking of rolling it to an account there.

This is ~$14000 plus or minus on any given day in the volatile market. I'm 32 and this money is for retirement.

My main concern about Sharebuilder is that there are almost no mutual funds (with the exception being ING mutual funds) to chose from. Instead I can only buy regular stocks or ETFs (Exchange Traded Funds) or I can just leave it in a money market account. What are the advantages or disadvantages of ETFs vs mutual funds? Are ETFs suitable for long term retirement investing?

Also, has anyone executed a rollover to Sharebuilder. Was it easy, hard, pros, cons?

[Car Insurance Guy]

ETFs are perfectly suitable for long-term investing - assuming you're picking the right fund(s). The total cost of ownership is lower due to no fees and lower expense ratios. I would have no problem picking up a few ETFs in place of mutual funds. I'm a freelance contributor for a company that still recommends an all-equity portfolio. That translates into 100% ETFs.

In my mind, the question is which ETFs to buy. If the market is near the bottom, it almost doesn't matter. But that's a big 'if'. There are several threads on this forum and countless other sites that discuss appropriate asset allocation. Sharebuilder may be able to provide some guidance.