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I am a 34 year-old married woman with no children who is the main wage-earner in the family. I am being "transitioned" from one company to another. Since the feds don't consider this as leaving the old company, I have only two choices with my 401K (+$17,000):
1) Leave it in the old company.
2) Transfer it to the new company.

After reading "You Have More Than You Think," I came to the conclusion that I should go with option 2 and put everything (100%) in the Vanguard 500 Index Fund. Does this sound like a good idea?

One wrinkle is that I have about 20% of my old 401K in my old company's stock, which has done great the last couple of years but unfortunately is tanking right now. Does this mean I'll lose lots of money when I transfer? With this in mind, should I go with option 1, transfer all my assets to the old company's stock, and wait for the company to come round (it's at 45 now, projected to 191 by year-end). Then I could start over again in the new company and go with the Vanguard 500 Index Fund.

I'm very confused (I didn't even know you could have two 401K's) and I have to make this decision within the next week, so any advice I can get will be greatly appreciated. Thanks in advance for being patient with a beginner.
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