What specific questions should I consider when selecting a company to do a roll-over of my 401k?
What specific questions should I consider when selecting a company to do a roll-over of my 401k?
I have been looking at various companies (Vanguard, Fidelity etc..) but I don't know how to make a decision. What specific question should I be asking? Thanks!!
Answers:
Clark Kent: Both Vanguard and Fidelity are good. Both charge low fees. You could also get an account with a discount broker and buy an Exchange traded fund equivalent of Vanguards S&P 500 index fund.
For a one-time purchase the ETFs will cost less if you only incur a one-time $10 brokerage fee. If you are dollar-cost averaging the mutual fund will cost less
2009-12-18 18:00:27
2009-12-18 18:00:27
jlf: The first decision you need to make is what you want to invest in within the IRA. If you want the security of FDIC-insured accounts, you need to use a bank as IRA custodian. If you want mutual funds, go directly with a good fund company like Vanguard, T. Rowe Price, etc. If you want an IRA that allows you to hold other types of securities (stocks, ETFs, bonds, etc.), you'll need a brokerage account IRA. Many of the big mutual fund companies also provide those, or you can use a separate on-line or "brick and mortar" brokerage.
2009-12-18 18:39:41
2009-12-18 18:39:41
Sharon T: What are your fees? How is your customer service (decide this yourself based on your experience with them)?
You are looking at two good companies. I've been with Vanguard for six years and couldn't be happier. Their customer service is absolutely top-notch. Their fees are the lowest I've found. They do a very good job handling rollovers.
By the way, Vanguard has a brokerage division so you can buy ETF's in your IRA account as well.
If you do a trustee-to-trustee transfer, you can still do a rollover later if you aren't happy, though you are wise to try to find the right match the first time around.
2009-12-18 18:56:17
2009-12-18 18:56:17
Chosen Answer
Uncle D: Where you invest your money will depend on how much you have to invest. If your 401K is with a large fund house such as Fidelity or Vanguard they may have a no fee option for you depending how much money you have. Institutions are generally very helpful in rolling the money over to an IRA. If you have one to twenty five thousand your best option will most likely be with a mutual fund company direct. They too can be very helpful to you in rolling over your money. An option which I do not like is an online broker. Online brokers tend to have a lot of fees. You the investor may be tempted to buy that hot stock which ends up fizzling. Avoid taking possession of your money. An electronic transfer can usually be completed. The institution where you are investing your IRA is most often eager to help. Keep a record of all related tax documents. Ask about fees.
2009-12-19 08:21:38
Uncle D: Where you invest your money will depend on how much you have to invest. If your 401K is with a large fund house such as Fidelity or Vanguard they may have a no fee option for you depending how much money you have. Institutions are generally very helpful in rolling the money over to an IRA. If you have one to twenty five thousand your best option will most likely be with a mutual fund company direct. They too can be very helpful to you in rolling over your money. An option which I do not like is an online broker. Online brokers tend to have a lot of fees. You the investor may be tempted to buy that hot stock which ends up fizzling. Avoid taking possession of your money. An electronic transfer can usually be completed. The institution where you are investing your IRA is most often eager to help. Keep a record of all related tax documents. Ask about fees.
2009-12-19 08:21:38