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Author: bacon Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75401  
Subject: Re: 401K Date: 1/19/1998 11:01 PM
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<Looking for some advice. A little background: I am 53 and have a 401K plan through my former company, a
large electric utility. The plan is administed by ML, and there are several options for investing/moving my
contributions, at no cost.

I understand it is best to move to another plan, I suppose because I cannot direct investment of the company
contributions in the existing plan. I must admit that the company stock is not exactly setting the world on fire,
but is holding its own in the current market.

What are your suggestions?>

You're laboring under a false assumption. It is not _necessarily_ best to move 401(k) money to another Plan. All the injunctions you've read to preserve the purity of 401(k) monies as they are rolled to whereever are solely to preserve that option should one decide, after running the numbers, that this is best. Personally, I've rolled my ex-401(k) money into an IRA (which will only contain this money and its earnings) so that I can self direct investments made with this money (UV4, Unemotional Growth, etc).

What I suggest you do is read MF's Investment Guide, this Web site's 13 Steps, and review several of the screens (I suggest beginning with the BTD variants and move on from there). You may find that you're better off with your ex-401(k) money in a self-directed IRA, or you may decide you're better off rolling into the next 401(k) Plan. One more thing: sit down with yourself and gain a cold, clear idea of just why you're investing, what you want the money for, etc. then invest, not before.

Hope this helps.

Eric Hines
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