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Message
19k from previous employer 401k
Posted on 2/21/17 at 8:59 am
Posted on 2/21/17 at 8:59 am
Not really great with all the investment stuff. I have 19k from a previous employer 401k in a Nationwide retirement account. I'm pretty certain that's not the best place for it.
Current employer 401k is through Fidelity, and I like the idea of rolling it over into that 401k to have the ability to borrow against it should shite hit the fan. I also know this isn't the best route to go at all.
What should I do with it?
Vanguard IRA? What funds?
Fidelity IRA?
Roll into current employer 401k?
Basically if it was your 19k how would you handle it.
Current employer 401k is through Fidelity, and I like the idea of rolling it over into that 401k to have the ability to borrow against it should shite hit the fan. I also know this isn't the best route to go at all.
What should I do with it?
Vanguard IRA? What funds?
Fidelity IRA?
Roll into current employer 401k?
Basically if it was your 19k how would you handle it.
8
Posted on 2/21/17 at 9:05 am to BoogaBear
Roll it into current 401k
Yikes
quote:
and I like the idea of rolling it over into that 401k to have the ability to borrow against it should shite hit the fan
Yikes
Posted on 2/21/17 at 9:07 am to Clint Torres
I worry a lot.
I've never borrowed against or withdrawn from 401k. I just like the idea of it being there.
I've never borrowed against or withdrawn from 401k. I just like the idea of it being there.
Posted on 2/21/17 at 9:46 am to BoogaBear
(no message)
This post was edited on 12/21/21 at 10:58 am
Posted on 2/21/17 at 9:49 am to BoogaBear
quote:
Basically if it was your 19k how would you handle it.
roll it over to a rollover IRA, put money in a broad index fund.
Posted on 2/21/17 at 11:51 am to BoogaBear
does your current employer offer any match to your 401K? if they do, roll it over and add to it their match and what you wish to contribute.
Posted on 2/21/17 at 12:16 pm to barry
Yes, rollover into your own IRA. You will have many more investment options than an employer plan plus access to investments with cheaper fees.
Sounds like you should work on building up an emergency fund for the moments where it does hit the fan
Sounds like you should work on building up an emergency fund for the moments where it does hit the fan
Posted on 2/21/17 at 12:53 pm to kaaj24
We have a 2-3 month emergency fund.
I just didn't know if there was a huge difference between employer 401k and rollover IRA. If there wasn't much of a difference, why not keep it in employer IRA to have that option.
Thanks for the help, I started the process of rolling it into an IRA with Fidelity. Chose Fidelity simply to have one place to view everything.
Recommend any funds?
I just didn't know if there was a huge difference between employer 401k and rollover IRA. If there wasn't much of a difference, why not keep it in employer IRA to have that option.
Thanks for the help, I started the process of rolling it into an IRA with Fidelity. Chose Fidelity simply to have one place to view everything.
Recommend any funds?
Posted on 2/21/17 at 1:02 pm to BoogaBear
You can increase your emergency fund by investing in a Roth IRA (if eligible) if you don't feel 2 - 3 months provides enough cushion. That way you don't have too much idle cash.
I personally like Vanguard ETFs like VTI or VOO (both are stock index funds).
You may consider retirement date funds as they are great for people who don't have the time and/or interest to track investments and allocations.
Make sure to be aware fees before you invest. It does make a significant difference over 25 years.
I personally like Vanguard ETFs like VTI or VOO (both are stock index funds).
You may consider retirement date funds as they are great for people who don't have the time and/or interest to track investments and allocations.
Make sure to be aware fees before you invest. It does make a significant difference over 25 years.
Posted on 2/21/17 at 1:05 pm to BoogaBear
Check the details of your current 401k. Many employers don't have the 401k setup to allow you to borrow against rollover money, ONLY the money you invest in your 401k earned from your current employer is eligible for those types of perks/benefits.
Posted on 2/21/17 at 1:09 pm to BoogaBear
Since your work has a deal with Fidelity, your work should have a financial adviser from Fidelity assigned to your work. You should contact them for investment advice. They can give you advice that would normally not be free and they will be very familiar the Fidelity IRA options.
Posted on 2/21/17 at 2:31 pm to BoogaBear
With $10,000 or more you can get the Fidelity 500 Index Premium Class (FUSUX) which has an expense ratio of 0.045%.
Posted on 2/21/17 at 5:31 pm to BoogaBear
Roll it over to a vanguard ira and don't even think about borrowing against it.
Posted on 2/21/17 at 5:33 pm to XanderCrews
quote:
Whatever you do document the process meticulously and keep all the records. The IRS will most likely come after you for the disbursement and it will be on you to prove you didn't cash the check. And they will do it 2 yrs after.
This is why it's better to do a direct rollover. You tell existing brokerage to make check out to new brokerage.
Posted on 2/21/17 at 8:44 pm to TigerDeBaiter
Roth or traditional ira?
Posted on 2/22/17 at 2:58 am to BoogaBear
Most 401ks have high fees and limited options.
Would use the opportunity to "liberate" the money and rollover into an IRA/Roth IRA I had full control over.
If you add it to the new 401k, you can't ever do that unless you leave the job.
Would use the opportunity to "liberate" the money and rollover into an IRA/Roth IRA I had full control over.
If you add it to the new 401k, you can't ever do that unless you leave the job.
Posted on 2/22/17 at 8:56 am to BoogaBear
quote:that thought would never even cross my mind
I've never borrowed against or withdrawn from 401k. I just like the idea of it being there.
Posted on 2/22/17 at 9:25 am to TigerDeBaiter
(no message)
This post was edited on 12/21/21 at 10:58 am
Posted on 2/23/17 at 8:37 pm to barry
Index funds have made a net return of less than 4% since 2000-
Posted on 2/24/17 at 8:06 am to BoogaBear
Borrowing against IRA is underrated. Low rate ( although not low for fully secured loan, it is low versus other options if all your savings is in 401k/IRA or if you don't want to cash out other investments). I did it twice when some property I liked came on the market and I didn't have the cash right then. Got the property and the loans off in 18 months when cash became available.
Good for emergencies too- easier loan than bank.
Good for emergencies too- easier loan than bank.
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