No. of Recommendations: 1
I was wiped out financially during the dot com bust. My 401k was all in company stock that went from a peak value of over 800K to zero. I am 46 years old and now have gotten back on my feet, but still behind the retirement investment power curve. I recently changed jobs and have 50k to roll-over to either an IRA or an employer 401k. I am currently contributing to my new employer 401k but need some feedback concerning investment options of the roll-over from my previous company. I am leaning toward a roll-over to an IRA and diversifying it myself. My questions are as follows:

1. Roll-over to an IRA or to new company's 401k (current investment returned 17% last year).
2. If I roll to an IRA, given that I am 46 years old, what would be the best way to diversify it given I plan to retire in 20 years.
3. I currently utilize TD Ameritrade as my discount broker. Any recommendations for alternatives?

I am no investment pro by a long shot. I do need to take on some additional risk to catch up. Any feedback would be much appreciated.


You haven't gotten an answer yet since everybody is caught up in the healthcare issue so here is my 2 cents worth. I think roll over to IRA is probably a good idea since IRA's usually have more flexibility than 401k's. You will have a chance to educate yourself and make your own choices in your IRA. Chances are fees will be lower too. I would get my feet wet early in a conservative way using no load preferably indexed funds using conventional asset allocation for your age. There are a lot of models you can study including ones on RYR. 20 years is a pretty good stretch of time but you certainly don't need another wipeout so don't be in a big hurry to take a lot of risk. Slow and plodding for 20 years just keeping up or slightly beating inflation is a lot better than losing a large percentage due to high risk. If you were 25, I would say go for it. I don't know much about Ameritrade except they have low fees on trading stocks which you shouldn't be doing much of. A better choice for an IRA might be Vanguard, Fidelity or Schwab because of their wide variety of high quality mutual funds offered. You have gotten a good lesson (as most of us have) from the school of hard knocks. Its the eggs in a basket theory. Its the only thing that has worked consistently for me over the years. Diversify, diversify and don't have too much of any one thing no matter how good it looks.

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