Author Topic: What to do with an old 401k  (Read 6244 times)

TheInsuranceMan

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What to do with an old 401k
« on: May 28, 2015, 08:30:50 AM »
Okay, so a quick review on what's going on.

I started my first job, which happened to be at a Fortune 100 company, when I was 20.  They automatically signed you up for their 401k unless you opted out.  Needless to say, I was smart enough at that point (scary, actually, because I wasn't very financially savvy at 20 years old) to be putting in 6%, getting the companies 3% match.  I worked there for 5 years, and have 30k sitting in that 401k.

I have since, as of two years ago, moved jobs and have a 401k through my place of employement.  My old 401k is through Fidelity, and I'm curious on what people think I should do with it.  It is fine sitting there, earning money on it's interest, but I'm not contributing to that any longer as our new 401k plan is through a different company. 

So, do I roll it over into my current 401k?  Or roll it over into something else?
Also, I have no idea how to complete the rollover process - obviously, I'll just have to call and get some answers about that, but I'm looking for some advice here.  I know most MMM guys/gals are huge Vanguard fans, with good reason, so I was thinking maybe roll it to a Vanguard account, but I'm not sure what the rules are, or what type of investment I need to roll it to to not get penalized.

Thoughts?

MDM

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Re: What to do with an old 401k
« Reply #1 on: May 28, 2015, 09:59:08 AM »
How do the funds available and the fees charged compare between the two 401k plans?

curler

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Re: What to do with an old 401k
« Reply #2 on: May 28, 2015, 10:04:37 AM »
Basically, you have 3 options:
1.  Keep your old 401k where it is
2.  Move your old 401k into your new 401k
3. Move your old 401k into an IRA

As MDM said, the big questions will be fees and availability of funds in the two 401k's.  What company is your new 401k with?  Comparing the two 401k's will tell you whether option 1 or option 2 is better.  Option 2 does have the benefit of putting all the money in one place, for whatever that is worth.

Generally, a 401k will have higher fees and fewer options than an IRA.   So chances are option 3 will be your best bet.  If you go that way, and go with Vanguard, they are great at getting everything done for you.  Just  call them up, give them account info for your 401k, and they take care of the res.  There really aren't too many rules.  Just choose the Vanguard mutual fund/funds that you want to be invested in.  (And you should probably be opening an IRA anyway...but that is a different post).

TheInsuranceMan

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Re: What to do with an old 401k
« Reply #3 on: May 28, 2015, 03:12:44 PM »
Basically, you have 3 options:
1.  Keep your old 401k where it is
2.  Move your old 401k into your new 401k
3. Move your old 401k into an IRA

As MDM said, the big questions will be fees and availability of funds in the two 401k's.  What company is your new 401k with?  Comparing the two 401k's will tell you whether option 1 or option 2 is better.  Option 2 does have the benefit of putting all the money in one place, for whatever that is worth.

Generally, a 401k will have higher fees and fewer options than an IRA.   So chances are option 3 will be your best bet.  If you go that way, and go with Vanguard, they are great at getting everything done for you.  Just  call them up, give them account info for your 401k, and they take care of the res.  There really aren't too many rules.  Just choose the Vanguard mutual fund/funds that you want to be invested in.  (And you should probably be opening an IRA anyway...but that is a different post).

Curler, thanks for the info - thanks as well to the other person that had responded.

I know I should be opening an IRA as well, but with DW and my incomes being relatively small, working on paying off a CRAP load of student loan debt, I've just been contributing to a 401k and using any remaining funds to knock down the high (6.5%) interest student loans.  I asked SoFi if they'd do a refi on my loans, but my school is not approved according to an email correspondence I had with one of their reps.  I do have enough equity in my house to probably refi that and pay my loans off, but at the moment, I don't think that is a good decision.  Payments would remain almost exactly as they are now and i'd lose any equity that I had gained.  We have a possible move in the next 2-3 years, and I'd like to be able to pay off the loans, whatever is remaining, with the profit we make off of the house sale.

forummm

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Re: What to do with an old 401k
« Reply #4 on: May 28, 2015, 05:13:21 PM »
InsuranceMan, it looks like you might have misunderstood what curler and MDM were saying. The IRA option was to move the money in your old 401k into an IRA. No additional cash would be added.

They asked what the fees are for your old 401k because that's what's important for you to find out. That's what tells us whether it's OK to leave it there or if you need to move it ASAP. If you can find out that info we can be more helpful.

TheInsuranceMan

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Re: What to do with an old 401k
« Reply #5 on: May 29, 2015, 08:45:18 AM »
InsuranceMan, it looks like you might have misunderstood what curler and MDM were saying. The IRA option was to move the money in your old 401k into an IRA. No additional cash would be added.

They asked what the fees are for your old 401k because that's what's important for you to find out. That's what tells us whether it's OK to leave it there or if you need to move it ASAP. If you can find out that info we can be more helpful.

I caught what they said, at the end of curler's post, he mentioned that I should probably open an IRA anyways, like have an IRA in general, regardless of what I do with my old 401k, which is why I divulged the information that I did.

I looked up my 1st quarter statement from Fidelity, and I can't see the exact percent of the fees.

My beginning balance in 2015 was $28,742.07
Fee's assessed were $8.98
And in the first quarter, I had a market value change of +$895.51

So, the fees that are assessed, is that based off my starting balance or ending balance?
Is this high or low?

Anywhere specifically that I can find the actual fee %?  I've looked all over the site and haven't found it yet...

Frankies Girl

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Re: What to do with an old 401k
« Reply #6 on: May 29, 2015, 09:09:04 AM »
Call up Fidelity and ask them to check your old 401k to see if you are paying anything other than the expense ratios on that account. That's the easiest/fastest way. I'm doing this shortly (just haven't gotten around to it), but for me the big factors were:

1. Do I have access to any exclusive institutional shares/funds or receive a discount on funds through this 401k?
(my answer: no)

2. Do I get charged any management fees by staying with this 401k?
(my answer: no. but if the answer had been yes, I'd have considered that an pretty big plus to getting it rolled over ASAP)

3. Are there any funds I'd rather be investing in that are unavailable in this 401k?
(my answer: yes, so that's a big plus to roll it)

4. Are there any protections I currently have as a 401k that would be unavailable if rolled to an IRA?
(my answer: no, because I live in a protected asset state, so another plus to rolling)

So based off that checklist, there is every reason to roll my 401k over to an IRA. You might be getting different answers, but try running through those questions and you should know one way or another if rolling to an IRA is the right move for you.

As per #4, another thing to think about is do you have protection from judgements in the case of getting sued/bankruptcy/creditors/etc...

I live in a state where everything is protected out the wazoo no matter if you have 401Ks or IRAs (Texas), but some states do not offer the same protections for IRAs, and 401Ks are more sheltered from judgements. (not that this should be a big factor involved in deciding to roll a 401k to an IRA, but you still should be aware of the coverages)

http://www.investopedia.com/ask/answers/07/seizing-savings.asp

http://www.irafinancialgroup.com/selfdirectedassetprotection.php
^has a chart showing state by state statues for protection



TheInsuranceMan

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Re: What to do with an old 401k
« Reply #7 on: May 29, 2015, 09:25:47 AM »
Call up Fidelity and ask them to check your old 401k to see if you are paying anything other than the expense ratios on that account. That's the easiest/fastest way. I'm doing this shortly (just haven't gotten around to it), but for me the big factors were:

1. Do I have access to any exclusive institutional shares/funds or receive a discount on funds through this 401k?
(my answer: no)

2. Do I get charged any management fees by staying with this 401k?
(my answer: no. but if the answer had been yes, I'd have considered that an pretty big plus to getting it rolled over ASAP)

3. Are there any funds I'd rather be investing in that are unavailable in this 401k?
(my answer: yes, so that's a big plus to roll it)

4. Are there any protections I currently have as a 401k that would be unavailable if rolled to an IRA?
(my answer: no, because I live in a protected asset state, so another plus to rolling)

So based off that checklist, there is every reason to roll my 401k over to an IRA. You might be getting different answers, but try running through those questions and you should know one way or another if rolling to an IRA is the right move for you.

As per #4, another thing to think about is do you have protection from judgements in the case of getting sued/bankruptcy/creditors/etc...

I live in a state where everything is protected out the wazoo no matter if you have 401Ks or IRAs (Texas), but some states do not offer the same protections for IRAs, and 401Ks are more sheltered from judgements. (not that this should be a big factor involved in deciding to roll a 401k to an IRA, but you still should be aware of the coverages)

http://www.investopedia.com/ask/answers/07/seizing-savings.asp

http://www.irafinancialgroup.com/selfdirectedassetprotection.php
^has a chart showing state by state statues for protection

According to the protection laws in my state, both traditional and roth are exempt from creditors. 

Thank you for the questions that you had posed.

1. Do I have access to any exclusive institutional shares/funds or receive a discount on funds through this 401k?
Nope, nothing special about the funds that I'm invested in through my 401k

2. Do I get charged any management fees by staying with this 401k?
Not that I am aware of

3. Are there any funds I'd rather be investing in that are unavailable in this 401k?
I'm not sure as I'm not up to speed on different available funds, and the benefits that would surround moving my 401k - I know, terrible answer, as I'm very, very uninformed in the investment department.

4. Are there any protections I currently have as a 401k that would be unavailable if rolled to an IRA?
Nope, I'm in an asset protected state.


It seems like Fidelity and Vanguard are the two recommended investment companies here on MMM, so I'm wondering what to do.
If I roll to an IRA, do I do a target retirement fund, or something else?

Someone had asked what company my current 401k is with, and that is Alliance benefit group, which I had never heard of before I started working here.  They have some neat tools available though...

Frankies Girl

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Re: What to do with an old 401k
« Reply #8 on: May 29, 2015, 09:49:29 AM »
Call up Fidelity and ask them to check your old 401k to see if you are paying anything other than the expense ratios on that account. That's the easiest/fastest way. I'm doing this shortly (just haven't gotten around to it), but for me the big factors were:

1. Do I have access to any exclusive institutional shares/funds or receive a discount on funds through this 401k?
(my answer: no)

2. Do I get charged any management fees by staying with this 401k?
(my answer: no. but if the answer had been yes, I'd have considered that an pretty big plus to getting it rolled over ASAP)

3. Are there any funds I'd rather be investing in that are unavailable in this 401k?
(my answer: yes, so that's a big plus to roll it)

4. Are there any protections I currently have as a 401k that would be unavailable if rolled to an IRA?
(my answer: no, because I live in a protected asset state, so another plus to rolling)

So based off that checklist, there is every reason to roll my 401k over to an IRA. You might be getting different answers, but try running through those questions and you should know one way or another if rolling to an IRA is the right move for you.

As per #4, another thing to think about is do you have protection from judgements in the case of getting sued/bankruptcy/creditors/etc...

I live in a state where everything is protected out the wazoo no matter if you have 401Ks or IRAs (Texas), but some states do not offer the same protections for IRAs, and 401Ks are more sheltered from judgements. (not that this should be a big factor involved in deciding to roll a 401k to an IRA, but you still should be aware of the coverages)

http://www.investopedia.com/ask/answers/07/seizing-savings.asp

http://www.irafinancialgroup.com/selfdirectedassetprotection.php
^has a chart showing state by state statues for protection

According to the protection laws in my state, both traditional and roth are exempt from creditors. 

Thank you for the questions that you had posed.

1. Do I have access to any exclusive institutional shares/funds or receive a discount on funds through this 401k?
Nope, nothing special about the funds that I'm invested in through my 401k

2. Do I get charged any management fees by staying with this 401k?
Not that I am aware of

3. Are there any funds I'd rather be investing in that are unavailable in this 401k?
I'm not sure as I'm not up to speed on different available funds, and the benefits that would surround moving my 401k - I know, terrible answer, as I'm very, very uninformed in the investment department.

4. Are there any protections I currently have as a 401k that would be unavailable if rolled to an IRA?
Nope, I'm in an asset protected state.


It seems like Fidelity and Vanguard are the two recommended investment companies here on MMM, so I'm wondering what to do.
If I roll to an IRA, do I do a target retirement fund, or something else?

Someone had asked what company my current 401k is with, and that is Alliance benefit group, which I had never heard of before I started working here.  They have some neat tools available though...


Okay, then based off the fact that you're not really up on what funds you want to invest in, I'd suggest doing some reading...

http://jlcollinsnh.com/stock-series/
^my go-to for learning about how the market thing works, and why most of us do what we do (this is how I learned about everything. I was a total noob three year ago).

Once you've got a good grasp on how the investing thing basically works, you need to figure out your investment policy statement:
http://www.bogleheads.org/wiki/Investment_policy_statement

and then your asset allocation (basically what stuff you want to invest in):
http://www.bogleheads.org/wiki/Asset_allocation
http://www.bogleheads.org/wiki/Lazy_portfolios

And then you need to figure out if you want to go with Vanguard (the leader in index investing, hell the index fund was invented by their founder and they are not a "for profit" company), or Fidelity (which has their Spartan series of low cost/index funds to compete with Vanguard). If you do go with Fido, just be aware that while they are overall more noob friendly (easier to use and better customer service in my opinion, and lots and lots of cool tools on their website) that they are a "for profit" company and you'd just need to make clear that you're self managing. Vanguard is still the first choice around these parts, but you can do very well with Fido too if you know to avoid the higher expense ratio stuff. I have my investments with Fido and have been very happy with them.

http://www.bogleheads.org/wiki/Fidelity
^ shows the equivalent Fido funds to Vanguard


TheInsuranceMan

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Re: What to do with an old 401k
« Reply #9 on: May 29, 2015, 10:03:09 AM »
Call up Fidelity and ask them to check your old 401k to see if you are paying anything other than the expense ratios on that account. That's the easiest/fastest way. I'm doing this shortly (just haven't gotten around to it), but for me the big factors were:

1. Do I have access to any exclusive institutional shares/funds or receive a discount on funds through this 401k?
(my answer: no)

2. Do I get charged any management fees by staying with this 401k?
(my answer: no. but if the answer had been yes, I'd have considered that an pretty big plus to getting it rolled over ASAP)

3. Are there any funds I'd rather be investing in that are unavailable in this 401k?
(my answer: yes, so that's a big plus to roll it)

4. Are there any protections I currently have as a 401k that would be unavailable if rolled to an IRA?
(my answer: no, because I live in a protected asset state, so another plus to rolling)

So based off that checklist, there is every reason to roll my 401k over to an IRA. You might be getting different answers, but try running through those questions and you should know one way or another if rolling to an IRA is the right move for you.

As per #4, another thing to think about is do you have protection from judgements in the case of getting sued/bankruptcy/creditors/etc...

I live in a state where everything is protected out the wazoo no matter if you have 401Ks or IRAs (Texas), but some states do not offer the same protections for IRAs, and 401Ks are more sheltered from judgements. (not that this should be a big factor involved in deciding to roll a 401k to an IRA, but you still should be aware of the coverages)

http://www.investopedia.com/ask/answers/07/seizing-savings.asp

http://www.irafinancialgroup.com/selfdirectedassetprotection.php
^has a chart showing state by state statues for protection

According to the protection laws in my state, both traditional and roth are exempt from creditors. 

Thank you for the questions that you had posed.

1. Do I have access to any exclusive institutional shares/funds or receive a discount on funds through this 401k?
Nope, nothing special about the funds that I'm invested in through my 401k

2. Do I get charged any management fees by staying with this 401k?
Not that I am aware of

3. Are there any funds I'd rather be investing in that are unavailable in this 401k?
I'm not sure as I'm not up to speed on different available funds, and the benefits that would surround moving my 401k - I know, terrible answer, as I'm very, very uninformed in the investment department.

4. Are there any protections I currently have as a 401k that would be unavailable if rolled to an IRA?
Nope, I'm in an asset protected state.


It seems like Fidelity and Vanguard are the two recommended investment companies here on MMM, so I'm wondering what to do.
If I roll to an IRA, do I do a target retirement fund, or something else?

Someone had asked what company my current 401k is with, and that is Alliance benefit group, which I had never heard of before I started working here.  They have some neat tools available though...


Okay, then based off the fact that you're not really up on what funds you want to invest in, I'd suggest doing some reading...

http://jlcollinsnh.com/stock-series/
^my go-to for learning about how the market thing works, and why most of us do what we do (this is how I learned about everything. I was a total noob three year ago).

Once you've got a good grasp on how the investing thing basically works, you need to figure out your investment policy statement:
http://www.bogleheads.org/wiki/Investment_policy_statement

and then your asset allocation (basically what stuff you want to invest in):
http://www.bogleheads.org/wiki/Asset_allocation
http://www.bogleheads.org/wiki/Lazy_portfolios

And then you need to figure out if you want to go with Vanguard (the leader in index investing, hell the index fund was invented by their founder and they are not a "for profit" company), or Fidelity (which has their Spartan series of low cost/index funds to compete with Vanguard). If you do go with Fido, just be aware that while they are overall more noob friendly (easier to use and better customer service in my opinion, and lots and lots of cool tools on their website) that they are a "for profit" company and you'd just need to make clear that you're self managing. Vanguard is still the first choice around these parts, but you can do very well with Fido too if you know to avoid the higher expense ratio stuff. I have my investments with Fido and have been very happy with them.

http://www.bogleheads.org/wiki/Fidelity
^ shows the equivalent Fido funds to Vanguard

Well, that looks like I have some reading to do!
I did look up the funds that my new 401k is invested in, which includes 4 Vanguard funds - 500 index, Mid Cap Index Admiral, Small Cap Index Adm, and Total Intl Stock Index Admiral
It appears that 29% of my 401k is invested between those 4

TheInsuranceMan

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Re: What to do with an old 401k
« Reply #10 on: May 29, 2015, 10:04:18 AM »
My first quarter fee with AGB was $1.82...

MDM

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Re: What to do with an old 401k
« Reply #11 on: May 29, 2015, 12:15:04 PM »
Well, that looks like I have some reading to do!
I did look up the funds that my new 401k is invested in, which includes 4 Vanguard funds - 500 index, Mid Cap Index Admiral, Small Cap Index Adm, and Total Intl Stock Index Admiral
It appears that 29% of my 401k is invested between those 4

If you have online access to your 401k, there is likely a web page that displays the expense ratios for each fund.  These expenses, expressed as a percentage of the amount you have in each fund, are the primary "fees" being discussed here.

Unfortunately you won't "see" these expense ratios as a line item in a quarterly statement, because they are deducted behind the scenes.  The nominal "fee" you may see is (usually) much lower than what you are paying in expense ratios.

If you can't find the expense ratios online, try having the web site open and calling the customer service number for them to walk you through finding the right page.

One consideration: if you ever want to do a backdoor Roth (or mega backdoor Roth), it will be better to have nothing in a traditional IRA.  Of course, as the saying goes, predictions are difficult, particularly in regards to the future.

With not too much reading you will become much more informed and all this will make much more sense.  Good luck!

curler

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Re: What to do with an old 401k
« Reply #12 on: May 29, 2015, 12:19:53 PM »
I looked up my 1st quarter statement from Fidelity, and I can't see the exact percent of the fees.

My beginning balance in 2015 was $28,742.07
Fee's assessed were $8.98
And in the first quarter, I had a market value change of +$895.51

So, the fees that are assessed, is that based off my starting balance or ending balance?
Is this high or low?

Anywhere specifically that I can find the actual fee %?  I've looked all over the site and haven't found it yet...

In addition to the fees listed as such on your statement, the funds that you invest in also have an "expense ratio", which is what I meant when referring to fees.  These will probably range anywhere from 0.1% to 3%+.  I believe that 401k plans are required to send you an annual disclosure listing these, but am not 100% sure of that. 

TheInsuranceMan

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Re: What to do with an old 401k
« Reply #13 on: May 29, 2015, 12:31:04 PM »
Good to know, I'll do some more digging!

TheInsuranceMan

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Re: What to do with an old 401k
« Reply #14 on: May 29, 2015, 12:38:53 PM »
Is this expense ratio found per fund, or something that should be listed for my entire 401k?
I know that doesn't seem to make sense, but I'm not sure how else to word it.

MDM

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Re: What to do with an old 401k
« Reply #15 on: May 29, 2015, 12:45:36 PM »
Is this expense ratio found per fund, or something that should be listed for my entire 401k?
I know that doesn't seem to make sense, but I'm not sure how else to word it.

Makes perfect sense.  It is specific to the fund.

And the same fund, but held in different 401k plans, can have different expense ratios in each.  That is why some 401k plans are "good" and some are "bad".

TheInsuranceMan

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Re: What to do with an old 401k
« Reply #16 on: May 29, 2015, 12:46:55 PM »
Is this expense ratio found per fund, or something that should be listed for my entire 401k?
I know that doesn't seem to make sense, but I'm not sure how else to word it.

Makes perfect sense.  It is specific to the fund.

And the same fund, but held in different 401k plans, can have different expense ratios in each.  That is why some 401k plans are "good" and some are "bad".

So, if I'm using their own "Aggressive Strategy", I need to go fund by fund to fine the expense ratio?  Not a huge deal, something I can do, just was curious!

MDM

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Re: What to do with an old 401k
« Reply #17 on: May 29, 2015, 12:49:54 PM »
So, if I'm using their own "Aggressive Strategy", I need to go fund by fund to fine the expense ratio?

Yes.

See http://forum.mrmoneymustache.com/investor-alley/ohio-deferred-compensation-program/ for some generic context.

TheInsuranceMan

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Re: What to do with an old 401k
« Reply #18 on: May 29, 2015, 02:27:32 PM »
Here's what I've got...each fund is listed, and their expense ratio, both on my old (Fidelity) 401k and my new (Alliance Benefit Group) 401k.

Old 401k      
Fund                       YTD Return   Expense Ratio
Large Cap Index   3.89%   0.02%
International Equity   10.23%   1.23%
Internation Index   10.43%   0.07%
Large Cap Value   4.18%   0.07%
Large Cap Growth   6.79%   0.79%
Bond Index   84.00%   0.04%
Small Mid Cap Value   6.96%   1.47%
Small Cap Index   4.55%   0.05%
Core Plus Fund   72.00%   0.49%
Small Mid Growth   7.02%   1.39%
Guaranteed Fund   1.35%   0.00%
      
Current 401k      
Fund                         YTD Return   Expense Ratio
Baird Intermediate Bond Fund Class Investor      0.55%
Columbia Acorn R4      0.84%
Voya Real Estate I      0.91%
Columbia Dividened Income R4      0.77%
Goldman Sachs Small Cap Value Instl      0.95%
Oppenheimer Developing Markets Class Y      1.03%
PIMCO Commodities Plug Strategy      0.74%
PIMCO Global Bond Adm      0.80%
PIMCO Moderate Duration Fund      0.56%
T. Rowe Price New Horizon Fund      0.79%
T. Rowe Price New America Growth      0.79%
American Funds EuroPacfic R-4      0.84%
JPMorgan Large Cap Growth Select      0.93%
Vanguard 500 Index      0.05%
Vanguard Mid Cap Index Admiral      0.09%
Vanguard Small Cap Index Adm      0.09%
Vanguard Total Intl Stock Index Adm      0.14%
Jhancock Disciplined Value R2      1.32%
JPMorgan Mid cap Value Sel      0.98%

MDM

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Re: What to do with an old 401k
« Reply #19 on: May 29, 2015, 02:50:02 PM »
Here's what I've got...each fund is listed, and their expense ratio, both on my old (Fidelity) 401k and my new (Alliance Benefit Group) 401k.
Well done!

Appears the old one has the lower expense ratios, so leaving your money there (and allocating it appropriately) seems fine.

TheInsuranceMan

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Re: What to do with an old 401k
« Reply #20 on: May 30, 2015, 07:10:24 AM »
Here's what I've got...each fund is listed, and their expense ratio, both on my old (Fidelity) 401k and my new (Alliance Benefit Group) 401k.
Well done!

Appears the old one has the lower expense ratios, so leaving your money there (and allocating it appropriately) seems fine.

Thanks MDM
im curious if itd be worth my time to roll it over to a vanguard ira or if not, what funds should I move that money into? I dont contribute to that old 401k any more, thinking if I roll it to an ira, when the time comes and I have additional money, itd be a good investment vehichle. Thoughts? Opinions on rolling to Vanguard? Fund recommendations?

MDM

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Re: What to do with an old 401k
« Reply #21 on: May 30, 2015, 07:59:39 AM »
im curious if itd be worth my time to roll it over to a vanguard ira or if not, what funds should I move that money into? I dont contribute to that old 401k any more, thinking if I roll it to an ira, when the time comes and I have additional money, itd be a good investment vehichle. Thoughts? Opinions on rolling to Vanguard? Fund recommendations?
The expense ratios in the old 401k are so good there is little incentive (maybe even negative incentive) to roll the money over to Vanguard.

See http://www.bogleheads.org/wiki/Three-fund_portfolio for some generic investment thoughts.

Below are some off-the-top-of-my-head thoughts on fund allocations.  The specific percentages are certainly debatable - what is more important is that you pick an asset allocation strategy and stick with it.  E.g., see http://www.bogleheads.org/wiki/Asset_allocation.

Old 401k            
Fund                     Expense Ratio   Allocation
Large Cap Index      0.02%           30%
Internation Index   0.07%         20%
Bond Index            0.04%           30%
Small Cap Index      0.05%           20%
            
Current 401k            
Fund                                                 Expense Ratio   Allocation
Vanguard 500 Index                              0.05%        20%
Vanguard Mid Cap Index Admiral         0.09%   30%
Vanguard Small Cap Index Adm          0.09%   30%
Vanguard Total Intl Stock Index Adm   0.14%   20%

TheInsuranceMan

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Re: What to do with an old 401k
« Reply #22 on: June 01, 2015, 08:16:14 AM »
im curious if itd be worth my time to roll it over to a vanguard ira or if not, what funds should I move that money into? I dont contribute to that old 401k any more, thinking if I roll it to an ira, when the time comes and I have additional money, itd be a good investment vehichle. Thoughts? Opinions on rolling to Vanguard? Fund recommendations?
The expense ratios in the old 401k are so good there is little incentive (maybe even negative incentive) to roll the money over to Vanguard.

See http://www.bogleheads.org/wiki/Three-fund_portfolio for some generic investment thoughts.

Below are some off-the-top-of-my-head thoughts on fund allocations.  The specific percentages are certainly debatable - what is more important is that you pick an asset allocation strategy and stick with it.  E.g., see http://www.bogleheads.org/wiki/Asset_allocation.

Old 401k            
Fund                     Expense Ratio   Allocation
Large Cap Index      0.02%           30%
Internation Index   0.07%         20%
Bond Index            0.04%           30%
Small Cap Index      0.05%           20%
            
Current 401k            
Fund                                                 Expense Ratio   Allocation
Vanguard 500 Index                              0.05%        20%
Vanguard Mid Cap Index Admiral         0.09%   30%
Vanguard Small Cap Index Adm          0.09%   30%
Vanguard Total Intl Stock Index Adm   0.14%   20%

So, I get re-allocating funds on my old 401k, but I'm curious as to why on my current one.  Do those funds you recommended line up with what would be an "aggressive" mix?  At 27 years old (I think..maybe I'm 28...I don't know right now), I'm okay with having some riskier investments as I have quite awhile before I'm going to be ready to retire. 

MountainManMustache

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Re: What to do with an old 401k
« Reply #23 on: June 01, 2015, 08:45:05 AM »
Leave it where it is until you have a plan, which might also be to leave it where it is. 

MDM

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Re: What to do with an old 401k
« Reply #24 on: June 01, 2015, 08:53:49 AM »
So, I get re-allocating funds on my old 401k, but I'm curious as to why on my current one.  Do those funds you recommended line up with what would be an "aggressive" mix?  At 27 years old (I think..maybe I'm 28...I don't know right now), I'm okay with having some riskier investments as I have quite awhile before I'm going to be ready to retire.
Oh...those long lists are the funds in which you are invested?!

I thought they were the list of all funds available in the 401k.  You don't need to be in that many different funds.  See the information in the bogleheads links.

In general, the lower the percentage of bonds the more "aggressive" the portfolio.  Another interesting article is http://whitecoatinvestor.com/150-portfolios-better-than-yours/.  Good luck!

TheInsuranceMan

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Re: What to do with an old 401k
« Reply #25 on: June 01, 2015, 12:30:03 PM »
So, I get re-allocating funds on my old 401k, but I'm curious as to why on my current one.  Do those funds you recommended line up with what would be an "aggressive" mix?  At 27 years old (I think..maybe I'm 28...I don't know right now), I'm okay with having some riskier investments as I have quite awhile before I'm going to be ready to retire.
Oh...those long lists are the funds in which you are invested?!

I thought they were the list of all funds available in the 401k.  You don't need to be in that many different funds.  See the information in the bogleheads links.

In general, the lower the percentage of bonds the more "aggressive" the portfolio.  Another interesting article is http://whitecoatinvestor.com/150-portfolios-better-than-yours/.  Good luck!

Yep, the ones listed in my current 401k are the ones that I'm invested in, and are apart of the companies "aggressive" 401k.