401k rollover options

[Herr_Poopschitz]

Being forced to do this w/ one of my accounts. Never done it before. Went to a few banks to talk about rolling into a traditional IRA, but they were setup more like CDs...fixed (LOW) rates for certain periods of time. F that.

One bank tried to sell me on annuities, so I've been studying up...but the concept sounds weird/sketchy to me...more like for someone who is about to retire...I'm 37 and unfortunately have a loooong way to go.

I'm at a bit of a loss. Anyone have any advice?

TIA

Sponsored

 

['Merica]

At 37, you still have time to take some risk. I wouldn't just stick it at a bank. Or even some investment company- they will look at your profile maybe once or twice a year and their main goal is to sell you something else each time they do. I always roll my 401k into a Traditional IRA at Scottrade. Trades are like $7, no matter what the size or number of shares. With a little bit of research, you can be your own financial advisor (and you will care a lot more than someone else). Stocks IMHO are a little overly inflated right now, so I have been investing in stocks with good dividends, check out AT&T, HSBC, Proctor & Gamble and even Ford. There are also growth stocks you can invest in since you are younger. My main growth stock is Tesla...I think that company is going to come out with something one of these days that is going to absolutely change the game- as if they haven't already. A traditional IRA will be tax deferred- you will pay taxes when you take the money out. A Roth IRA you will put cash in and it will be tax free when you go to take it out. Your 401k will roll into a traditional IRA.

A safer route is a good mutual fund. Fidelity, Hartford, Vanguard, Pimco are all companies that have great fund managers.

Look around on Yahoo finance and Bloomberg. It's always good to invest in high quality companies.

If you decide to go the Scottrade route, let me know, I can shoot you a link to get you (and me) three free trades.

I use to be a Financial Advisor. I got out of the business because I didn't enjoy pushing things on clients they didn't really need...like a CD for a 37 year old that needs a growth portfolio lol

 

[B Gordon]

What Merica said.

I was in the same situation as you 15 years ago.
Decided to roll mine into a traditional IRA and went with Fidelity because they are really large with some great funds and a low stock trade commission.
Originally I went 50% with a manager and 50% into a Fidelity Self directed IRA account. After two years I rolled the managed funds into my Fidelity account because I made way more money than the "manager".

 

[NHMustang]

I agree with 'Merca and Gordon... I took all of my rollovers and merged them into a Fidelity rollover account and now I invest in high quality companies that pay a good dividend and plenty of diversification. Just don't try to manage too many stocks as you do need to take some time to stay up on the company and earnings etc.

I am not going to make any recommendations on particular stocks, and if that is out of your comfort zone then you should go with a good low load index fund. At your age you want to stay on the aggressive side.

Stay away from annuity products.

Good luck!

 

[Herr_Poopschitz]

Thanks guys, what you've pointed out was more of what I expected. God forbid the banks that I've dealt w/ for 25 years actually educate instead of just push their bs products on me.

Thanks again.

 

['Merica]

Thanks guys, what you've pointed out was more of what I expected. God forbid the banks that I've dealt w/ for 25 years actually educate instead of just push their bs products on me.

Thanks again.

Yeah man! No bank or firm is going to give you what YOU need. They're going to set you up with a very safe portfolio full of fees to make them money. It's disgusting. I work at a bank now, but no longer deal with investments or individuals, for that matter. Good luck with the research and shoot me a pm if you have any questions.

Josh

Sponsored