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Subject:  Re: 401K rollover questions Date:  2/29/2004  5:18 PM
Author:  pauleckler Number:  39535 of 88772

You do want to move your funds to a Rollover IRA, but where depends on several factors. Vanguard is an excellent custodian, with good, low cost funds. But they do have extra charges for accounts below $10K. Do look into the fees you will pay for an account of the size you imply.

For small accounts, a discount broker can be the best choice. Some have mentioned that Scottrade offers no annual fee IRAs. Investing in SPY the S&P 500 Tracking stock traded on the Amex then becomes attractive. You will have to pay commission when you buy or sell, but those are small at a discount broker. SPY has low expense ratio and tracks the index.

As you gain more experience, the broker account makes it easy to invest in other things. In time you will probably follow that path. For now either way can work.

Best of luck to you.
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