No. of Recommendations: 1
Author: kristi418 Date: 6/12/00 1:01 PM Number: 22504

Here are some questions. If you can answer these, your choice may become self-evident, or you may need to ask more questions.

In your existing 401(k), what is your $10K invested in?

Are you happy with the returns you are getting there, and will your former employer allow you to leave your money there?

What if your new employer doesn't have similar investment options in his 401(k) plan or doesn't even have a plan?

If you decide to roll over into a self-directed IRA, would you feel comfortable investing in individual stocks, or would you sleep better with mutual funds?

Do you have other retirement investments (IRAs, etc.)? How much are they worth and where are they invested?

Now for my recommendations.
1. Stay away from financial advisors unless you feel you are incapable of learning the basics. You can start your education here at The Motley Fool. Start with the 13 steps.
2. If you must (either by edict or choice) get out of your previous employers plan, do a direct rollover to a mutual fund company like Janus, Fidelity, or Vanguard. DO NOT LET THE MONEY TOUCH YOUR HANDS UNLESS YOU WANT TO PAY PENALTIES OR YOU FEEL LIKE DOING LOTS OF PAPERWORK TO AVOID THE PENALTIES. Sorry to raise my voice, but that is very important.

Hope this helps

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