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Subject:  Re: Move company 401k to IRA Date:  10/8/2012  12:37 PM
Author:  op456op Number:  71034 of 88752

IMO, a resounding YES, I would move it. In fact I did, even before I fully retired I moved the vested amount to Scottrade and have had control of the investments in it since. This was on the advice of a Garrett Financial Planner (although not specifically ST, I already had a taxable and ROTH there so I think he thought it would be easier to mange that way.

After I retired a year later I moved the rest of the funds I had contributed that final year.

Since then I moved a large portion of it to Vanguard (the portion that was in VG ETF's to take advantage of the no commission fee on those ETF's). It hasn't made it any more difficult to manage either. I like Vanguard a lot for the ETF's. Most have a corresponding Mutual Fund that mimic each other if you're more comfortable with MF's.

I have no experience w/Fidelity but heard nothing bad and lots of good about them.

Also Charles Schwab has a number of no commission ETF's that have fees even lower than Vanguard, albeit by a small amount, e.g. - 0.01% lower. I think Schwab also has a intro deal that gives you up to $600 for moving your IRA to them. I've seen other offers similar but can't remember who now. I have a taxable account @ Schwab and am very happy with them too.

Scottrade does not reinvest divey's while Schwab does reinvest (even partial shares) at no charge, if that's important to you.

Shop around. Undoubtedly, the fees should be lower than a company 401k, particularly the ETF's at VG and Schwab.

OH, Scottrade also has some free ETF's as well, almost forgot. The no dividend reinvest was the deal breaker for me.

Most important, no matter who you go with, just do a Transfer In Kind so you do not take physical delivery of the funds. Most make it very easy with online forms to do this. Vanguard requires a Medallion Signature Guarantee where as Schwab does this for you.
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