international in my 401k

[billy]

I have 4 international and 1 small cap index fund in my self directed 401k at Schwab that has not been doing well for a while, I don't contribute to these funds anymore and do a simple strategy now (live and learn). I plan on firing in about 1.5 years and wanted to transfer my 401k to my ira, but would have to liquidate all my holdings per plan administrator. I'm not sure how I should proceed? I feel I created a sunk cost fallacy.

[MustacheAndaHalf]

I count 2 U.S. small cap funds:

Schwab Small Cap Index Fund (SWSSX)
Schwab Fundamental US Small Company Index Fund (SFSNX)

Since this account has only $33k, I don't see how it could be significant to your FIRE plans.

[billy]

That's right, 2 US and 3 international funds, I have not been paying attention to it for a while.

[terran]

If you have to liquidate anyway to rollover to an IRA (very common when leaving a 401(k), so nothing to be concerned about), does it really matter what you're invested in now? Where is the IRA you're going to move to? I would invest in a 3 fund portfolio with total US stock, total international stock, and total US bond index funds. Vanguard, Fidelity, Schwab, Etrade, and TD Ameritrade would all be good options, roughly in that order.

[billy]

I have my IRA with Vanguard, I was concerned about a realized loss in the future (right now about -$8,000) in my tax advantage account in my 401k.

[terran]

I have my IRA with Vanguard, I was concerned about a realized loss in the future (right now about -$8,000) in my tax advantage account in my 401k.

Gains and losses in a 401(k) don't have tax consequences (other than higher total balances meaning more income when you pull it out). I'd just move your 401(k) over to your Vanguard IRA and invest based on your desired asset allocation across all your accounts without regard to what you 401(k) is currently invested in. What's done is done and all you can do now is make the best decision with the money and investment options you have now.

In a Vanguard IRA I would be looking at VTSAX, VTIAX, and VBTLX.