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Subject:  Re: Recovering the 401k Date:  3/29/2013  7:21 PM
Author:  pauleckler Number:  71560 of 88758

If you are still within the 60 days, you should definitely roll over whatever cash you have to an IRA. If you do not, you will pay income taxes and penalties on those funds.

Roth IRA contribution if after the 60 day period can be OK to the max for your age group. If funds remain after that, then taxable account invested in the long term buy and hold style (LTBH). You pay taxes only when you sell and then at capital gains rates.

The key to growing your funds is getting a good rate of return on your investments. Equities offer the best chance, but most now use 8% or so as what you can expect over time. However, experience is that better numbers are possible in good times, which we hope will happen again one day. Just not real soon.

An index mutual fund is a good place to begin. If you want to learn stock investing, experiment with a CAPs account. Once you select 7 stocks, TMF rates your performance vs the S&P 500 everyday. If your score is a positive number, you are beating the index. Once you learn to consistently beat the S&P, you are ready to begin investing in stocks. Until then you are better off in mutual funds or etfs, where you let the pros do the stock picking.
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