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Author: Chipsboss Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Re: 401-k rollover Date: 1/22/2000 6:08 PM
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for atofool:

1. rollover the entire amount into the new company plan (approx $250k)
Potential problems with this rollover to the new company's plan are a) inadequate performance by the new company's retirement plan management, b) unavailability in the new company's plan of funds whose management styles you prefer, c) hassles in moving the money away from this possibly disappointing management -- you might have to quit the company to get back management control of your own retirement account. I'm not aware of any good reason to take option 1.

2. The second option seems no better. The agent seems to be looking out for his own interest, not yours. Only if that agent is your own much-loved brother or sister would I think that advice might be unbiased.

3. Why not an IRA of your own at a mutual fund company such as Vanguard that you pick out for yourself or a brokerage firm such as Schwab. (Those are the choices I made.) This gives you maximum flexibility -- if management displeases you, you can get a new custodian for your IRA with no taxes and no transfer fee. (If a potential custodian reserves the right to charge you a transfer fee, I'd walk out.)

Regards,

Chips

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