401k Rolled Over, now what?

[ECrew28]

Ok so I had a couple of 401k accounts that were rolled over a couple years ago into an IRA.  Obviously I know that I cannot add to it, without rolling over my current 401k.  But my question is, what do I do with it?  How do I manage it going forward?  I mean in my current 401k and my Roth, I am adding to them every month.  With my IRA, it just seems to sit there, and increases based on the market and dividends.  My rollover and my Roth are both held by a broker, but I have been rethinking that after looking at things.  I just don't want to mess it up on my own, since it is our future money.  Any thoughts or advice on what my next steps should be? 

[brewer12345]

Step 1: Go to Vanguard/Fidelity/Schwab with your accounts
Step 2: Put all the money in a balanced or target fund.

There is no step 3.

Right now, you are like the "underpants gnomes" on that South Park episode:

Step 1: roll IRA to broker who will rob you blind
Step 3: Profit.

[Eric]

You don't really do anything with it.  Make sure that it's invested in a broad market index fund.  Let it ride.

I wouldn't think of it as separate or different from your current 401k/retirement savings.  You're investing in your current 401k, which you'll eventually roll over into this IRA.  So while this particular IRA doesn't grow from new contributions, your whole pre-tax retirement account balance does.

[aj_yooper]

Ok so I had a couple of 401k accounts that were rolled over a couple years ago into an IRA.  Obviously I know that I cannot add to it, without rolling over my current 401k.  But my question is, what do I do with it?  How do I manage it going forward?  I mean in my current 401k and my Roth, I am adding to them every month.  With my IRA, it just seems to sit there, and increases based on the market and dividends.  My rollover and my Roth are both held by a broker, but I have been rethinking that after looking at things.  I just don't want to mess it up on my own, since it is our future money.  Any thoughts or advice on what my next steps should be?

IMO, your broker will also help you mess up your account too, so you are definitely not messing it up alone! 

Are you aware that brokers do not have an ethics standard like a physician or even an attorney; they take no pledge by their profession or equity licensure to ensure that your interests are paramount.  They are principally salespeople who are chosen to move product and generate income for their firm, not to save you money or make you rich. 

You are very wise not to want to mess up.  Read this JL Collins' posting re typical 401k plans for more information-http://jlcollinsnh.com.  That is why you and your SO need to get educated about investing.  Go to Bogleheads (http://www.bogleheads.org/wiki/Bogleheads®_investing_start-up_kit) and start reading.  Pick up a book like William Bernstein, The Investor's Manifesto at the library.  Use your worry tension energy to build your financial muscle.  Start learning and seriously think about losing the high priced spread.  Firms like Vanguard, Fidelity, or even Charles Schwab are significantly cheaper and they offer great information and education for free on the websites. 

Time for the big boy pants.   

[dudemize]

Keep in mind that you can access your 401(k) at 55 without penalty whereas if you transfer it to an IRA and intermingle it with other funds you will then be locked out until 59.5.

If the IRAs you have are rollover IRAs and you have not added any additional funds, you may be able to transfer them to your current 401(k) if it is a decent plan with a good selection of index funds.

[Jamesqf]

Also, why can't you add to the IRA?  AFAIK, you can contribute to both, though I think the IRA deduction may be limited for large contributions.

[grantmeaname]

Keep in mind that you can access your 401(k) at 55 without penalty whereas if you transfer it to an IRA and intermingle it with other funds you will then be locked out until 59.5.

Except for a Roth rollover pipeline, qualifying life events, or Rule 72(t) withdrawals.