When I left my previous job to start my own business I rolled my 401k into another companies mutual funds as an IRA rollover.Can I become truly Foolish and have these previously untaxed funds deposited into stocks of my choice without any tax consequences ???I am of course not planning on removing the cash, just moving my funds into stocks of my choice instead of the mutual funds where the money sits now.I am unsure if money from an IRA plan can be placed in any investment or only another IRA based fund.thanks for the input... I am a definate newbie but plan on being around a while (another 40 years at least !)
Can I become truly Foolish and have these previously untaxed funds deposited into stocks of my choice without any tax consequences ???Well, yes BUT there are still going to be FEES on the buying of those stocks, ya know(These aren't taxes but are costs that can be a drag on your returns).I'd suggest having the rollover IRA with a discount broker if you want to go with individual stocks although I'd argue it can also be truly Foolish to just take a plain ol' index fund.JB
thanks for the info, now the big question.Any suggestions as to which discount broker to use. I plan on buying, holding and sitting on the stocks so I'd prefer a "hands off" broker -- though they don't have to offer the lowest trade price, because I don't want to be trading frequently anyway !
Any suggestions as to which discount broker to use. Check out the "Choose a broker" link at the upper left.TMF ExROPhil Marti
TO: acupunctureoneYou have two issues to deal with: (1) What institution should you select to manage your IRA? and (2) What investments should you choose for your IRA?There are literally thousands of financial institutions out there who offer IRA accounts to help you manage your money. Your first decision is to select one of them. Just remember that your selection of financial institution will determine your available universe of investment options as well as their transaction costs. Generally, if you plan to self-direct your investments into stocks, look for a low-cost, online brokerage. If you plan to invest in a specific mutual fund, suggest you select that fund's manager for your IRA. If you want some esoteric high-risk investment (e.g., gold futures, REITs), then you should find an institution that offers that option. CAUTION: Investigate your options and pick your institution BEFORE you contact them. Else, you will have every financial institution you contact pestering you incessantly.NOTE: Once you have opened your new IRA account, you can 'roll' 401Ks and IRAs from other institutions into this account. Your second decision is your selection and timing of specific investment decisions. Generally, online stock transactions should cost you $7-$30 for up to 1000 shares. A full-service brokerage may charge you $200+ for this same transaction.
ETrade and Ameritrade are two internet-based brokerages which offer trades as low as $7-$10. Fidelity (and others) offer online trades of $20-$30. Suggest you investigate to make sure you understand their fee structure BEFORE you open an account with that firm.
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