Advice for 401k rollover

**sweeps** · 03-24-2009, 11:45 AM

Simple answer: Roll over to an IRA at Vanguard. Choose an appropriate Target Retirement fund for your age.

The answers can get much more complex if you want. In that case, talk to jIM_Ohio. LOL

**jIM_Ohio** · 03-24-2009, 12:13 PM

Target funds at Vanguard, Fidelity or T Rowe price would all serve you well. If you only wanted one fund, I'd go with a target date fund.

If you are looking to build a portfolio, then maybe choose one core fund and one complimentary fund, with intentions to add more money to portfolio soon.

**sofocused978** · 03-24-2009, 03:08 PM

Hey Jim, I took a peek at the Vanguard and T. Rowe Price websites. Looking at Target 2050 funds VFIFX and TRRMY. Between the two companies which one would you choose?

**jimmyengland** · 03-24-2009, 06:11 PM

sofocused im about the same age as you and i looked at this a yr ago and was in a very similar situation to you. i rolled mine over to a roth ira and put it in fidelity 2045 target fund. most people on here will probably tell you to go with vanguard. I like where im at cant really comment on rate of return due to present market conditions. Unfortunately at this point in investing we do not have enough money in the account to be fully diversified without doing one of these target funds. hopefully this helps you out....

**sofocused978** · 03-24-2009, 06:58 PM

Originally posted by jimmyengland View Post

sofocused im about the same age as you and i looked at this a yr ago and was in a very similar situation to you. i rolled mine over to a roth ira and put it in fidelity 2045 target fund. most people on here will probably tell you to go with vanguard. I like where im at cant really comment on rate of return due to present market conditions. Unfortunately at this point in investing we do not have enough money in the account to be fully diversified without doing one of these target funds. hopefully this helps you out....

Thanks jimmy

**atomicrc11** · 03-25-2009, 03:44 AM

You have about 6k, so you can meet the minimum for just about any of the major mutual fund families. I would go with who you feel most comfortable with. I use Fidelity for pretty much everything including checking. Their brokerage works well also. I've also used Vanguard and they aren't bad either.

**Phatphoeater** · 03-25-2009, 05:49 AM

All the reading I've done suggests looking for the lowest expense ratio you can while diversifying whatever asset allocation you feel comfortable with. I have my 403b with Fidelity and my SEP-IRA with Vanguard. VG has much lower expense ratios with lots of dirt cheap funds to choose from. While Fidelity has lots of choices their expense ratios are in the order of 3-4 times higher (with the exception of their Spartan funds which I've chosen).

The concept of the lazy portfolio encourages both of these principles. With ~6k to start you could open 2 funds then add as you accumulate cash. Total Market Index, Total International Market Index are 2 funds that can start in the right direction. As you open more funds you can than then go into some fixed income to reduce risk or add some small cap exposure through any number of small cap funds to increase return/risk.

While this requires some planning and tinkering every once in a while it allows more control over allocation and diversification.

**jimmyengland** · 03-31-2009, 06:06 PM

what did you end up doing?

Advice for 401k rollover