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Investing/Strategies / Retirement Investing
|Subject: Re: Just when things were going ok, the rules ch||Date: 1/4/2009 8:19 PM|
|Author: PTKeil||Number: 65039 of 74536|
My school district just went through this within the past few months, so I feel your pain. Fortunately I have only been employed for 3 years, so I am early in, not to mention my company (Metlife) was one of the chosen, per se, so I didn't have to change anything. Many teachers did, though, and were completely stressed about it. Consider yourself lucky that someone had the good sense to include Vanguard as an offering. I would have loved that since I use the indexing strategy. We have VERY pathetic choices where I work. Don't know who the people were who decided it, but they didn't know what they were doing.
Things you should consider:
You have quite a bit of time before retirement. You may take a loss now if you roll over your holdings, but in the time you have (with what you're buying at the other company being on "discount") the opportunity to have it grow considerably.
What are you paying for fees in your current holdings? How are they doing?
What is the penalty if you roll them over to the new plan? Vanguard is a great option, but in our corporation you would get penalized if you didn't own the holdings for more than 7 years, I believe (or was it 10?), if you rolled them. You can opt to hang onto them before you roll them so there aren't penalties, but who knows what the market will bring?
Pre-tax is the only way to go if you have the option and can invest in something worthwhile. You are already maxxing out your IRA, and I'm assuming taking full advantage of any employer matches with your TSA. I chose to max out my TSA first because it was pre-tax, and now am contemplating an IRA to diversify.
Just make sure you read over all the paperwork very thoroughly to know what you're in for. We only had about a month to decide, so there was complete panic at our school system. One of the teachers broke down crying because she didn't know what to do, but was unwillinhg to educate herself. Too bad for her.
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