Managing 401(k) Rollover | TigerDroppings.com
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rcdodd
LSU Fan
Flowood
Member since Feb 2006
268 posts

Managing 401(k) Rollover

I've just started a new job and looking to rollover my 401(k) into a company like Schwab, Fidelty, or Scottrade. How hard is it to manage the IRA in choosing what accounts you invest in? Are there models such as Agressive, Average, or Passive that will choose funds for me based on volitility? Managing my own portfolio concerns me a little so I want to put my mind at ease if possible. Who would you recommend? Thanks.


Bob Sacamano
Tulane Fan
Houston
Member since Oct 2008
2239 posts

re: Managing 401(k) Rollover
I'm with Schwab. Would recommend.



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LSURussian
LSU Fan
Member since Feb 2005
85143 posts

re: Managing 401(k) Rollover
I have my 401(k) rollover with Schwab. It's very easy to manage with them.


rcdodd
LSU Fan
Flowood
Member since Feb 2006
268 posts

re: Managing 401(k) Rollover
Thanks, guys. I was leaning Schwab.


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deathvalleyrox27
LSU Fan
Alexandria, LA
Member since Nov 2007
764 posts

re: Managing 401(k) Rollover
I wouldnt just blindly go with a company. First of all, you need to see what investments they offer for not only now but down the road - you may just fine with stocks and mutual funds now but you may need an annuity, bond, REIT etc etc down the road... can they offer that? if not you will have to move it to a broker to get those products. Also, would you rather talk to a diffrenet person on a 1-800 number each time you call that is not familiar with you or your needs and has no plan for you or be able to walk into your brokers office and deal with him each time - someome that can make a plan and who knows you and your current and future needs??


matthew25
Ole Miss Fan
Member since Jun 2012
3832 posts

re: Managing 401(k) Rollover
Does Schwab give advice/recommendations?

I have Scott and Vanguard (and 2 others) and neither Scott nor Vanguard will give advice.


smyce
LSU Fan
Lafayette, La.
Member since Sep 2007
3133 posts

re: Managing 401(k) Rollover
What are the benefits of Schwab over Edward Jones or Chase?

I bank with Chase and there is an Edward Jones right by my house. I need to roll my 401(k) over but I don't really know how or what I am doing.


matthew25
Ole Miss Fan
Member since Jun 2012
3832 posts

re: Managing 401(k) Rollover
I had E. Jones for a while. Every stock I purchased was $450 commission fee. The broker would cald me 3 weeks later and say it was time to sell. When I sold it, I paid $450 commission fee.

No more Jones for me. The Scott and Vanguard wire-houses work fine, for $7 each way, but no advice.

Still wondering, does Schwab give advice?


12Buck
LSU Fan
Baton Rouge
Member since Jul 2005
582 posts

re: Managing 401(k) Rollover
With the given information I would recommend speaking to a professional. You seem concerned about how to make investment choices and companies like Schwab and Scottrade are not going to give you advice. They will however have very low fees. Managing your own money is not for everyone. If you are not comfortable doing it yourself don't be afraid to pay someone to help you. Just make sure to look around at the different brokers and ask about their fees.


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12Buck
LSU Fan
Baton Rouge
Member since Jul 2005
582 posts

re: Managing 401(k) Rollover
quote:

Every stock I purchased was $450 commission fee. The broker would cald me 3 weeks later and say it was time to sell. When I sold it, I paid $450 commission fee.


I hate these types of examples. Were you trading 100k worth of stock of 5k? When he called you in 3 weeks did you have a big profit? Did something materially change in the investment? This is all important.

Paying $900 round trip seems high but if it was on 100k it's less than 1% if it's on 5k it's nearly 20%. Makes a big difference.


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NBR_Exile
LSU Fan
Houston
Member since Jul 2012
132 posts

re: Managing 401(k) Rollover
My wife and I have most of our accounts with Schwab. Extremely pleased but I am comfortable managing our finances. Schwab does give advice. We have a Schwab consultant that emails/calls occasionally offering help. Not sure but it might be tied to the size of the account though. I've emailed her several times with questions and have even had a portfolio checkup done. They will/can not give advise on your employer 401ks. Only the accounts with them. I think it is a banking regulation thing if I not mistaken.


smyce
LSU Fan
Lafayette, La.
Member since Sep 2007
3133 posts

re: Managing 401(k) Rollover
With Schwab, they told me it was no fees to open and no fees to maintain. Where do they make their money?


NBR_Exile
LSU Fan
Houston
Member since Jul 2012
132 posts

re: Managing 401(k) Rollover
Trading commissions would be my guess. Although alot of those are waived if you buy the Schwab branded funds/etfs.

There are fees/expenses built into funds/etfs. Look at the expense rations for the individual funds/etfs.


smyce
LSU Fan
Lafayette, La.
Member since Sep 2007
3133 posts

re: Managing 401(k) Rollover
Can doing such a thing be temporary? For example, I recently lost my job and I want to roll my 401 into my new job's 401, however, I have no idea when I will begin said new job. Can I roll it to Schwab then, when I get the new job, roll it from Schwab to the new job?


LSURussian
LSU Fan
Member since Feb 2005
85143 posts

re: Managing 401(k) Rollover
quote:

Can I roll it to Schwab then, when I get the new job, roll it from Schwab to the new job?

That's allowed by the tax laws but it depends on your new employers plan document. Some employers allow it and some don't. You will have to ask your new company what their plan allows.


smyce
LSU Fan
Lafayette, La.
Member since Sep 2007
3133 posts

re: Managing 401(k) Rollover
So say my new job doesn't allow it, what are my options?


LSURussian
LSU Fan
Member since Feb 2005
85143 posts

re: Managing 401(k) Rollover
Roll it over into a rollover IRA which you manage yourself or hire an adviser to manage it for you.


matthew25
Ole Miss Fan
Member since Jun 2012
3832 posts

re: Managing 401(k) Rollover
I had the Ed Jones account about 12 or so years ago. One specific example: I bought 1000 shares of Darden at $7. Broker called me about three weeks later when it was $12 and said to sell now. No more upside. I paid $900 total commissions.

Some time later, Darden hit $19. After 3 rounds of this "churning," I dropped Jones.

Have no idea of what their commissions would be now.


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12Buck
LSU Fan
Baton Rouge
Member since Jul 2005
582 posts

re: Managing 401(k) Rollover
quote:

So say my new job doesn't allow it, what are my options?


As Russian said, roll it into a Rollover IRA and hired someone to manage it or do it yourself on a site like Schwab. IMO even if your new employment allows you to roll it in, I would not. In a rollover IRA at any large company you will have access to any investments you would want. In a 401k you will typically be limited to 10-20 funds within the plan.


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