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Author: SimChuck Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75794  
Subject: Retirement asset consolidation? Date: 12/3/1998 3:09 PM
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Here I am in my early thirties, a rollover IRA at Fidelity from my first employer, 401k at Vanguard with my second, and about to enter into my new employer's 401k with an assortment of otherwise unrelated funds. Things are starting to get complicated.

Fidelity has been doing fine by me lately, although I remember a long period of disappointing returns. Vanguard offers some nice options, but performance has been lagging lately. The new 401k plan doesn't seem to offer anything interesting, other than the Vanguard Index 500.

I don't plan on touching any of this money until I retire, and I am inclined towards an aggressive mix, but I'm not sure what the pros and cons are of having my portfolio distributed among several institutions. Should I consolidate under one or two umbrellas, or maximize my options by keeping all three accounts?

I have initiated the process to convert the Vanguard 401k to a rollover IRA. Then, assuming I can handle the tax hit, I will convert this IRA and/or the Fidelity IRA to Roth IRA's. The new 401k looks like it will be invested 100% in VFINX. Allocations in the IRA's will be moved to FMAGX and VFINX.

With this distribution, I'm really not taking advantage of my many investment options, but it appears to have the best potential for long-term growth.

Anyone care to comment?
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Author: zgriner Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6978 of 75794
Subject: Re: Retirement asset consolidation? Date: 12/3/1998 10:10 PM
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The upside to maintaining separate accounts is that you can buy and sell withing each IRA without incurring extra transaction fees, if you stay in mutual funds.

The downside is that it is more of a pain to transfer funds between each IRA. You may have to pay custodial fees for each separate IRA. Also, if you decide to jump into buying stocks, you will have to ask the brokerage to transfer funds from one or more IRAs when you open an account. If you choose to buy your mutual funds within a brokerage account, you may incur transaction fees, even on a no-load fund. OTOH, if you want to move money between funds, or sell to buy stocks, just contact your broker.

In the end, you have to be comfortable with your risk and choices.


Zev

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6990 of 75794
Subject: Re: Retirement asset consolidation? Date: 12/4/1998 11:03 AM
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Greetings, SimChuck, and welcome. You wrote:

<<Here I am in my early thirties, a rollover IRA at Fidelity from my first employer, 401k at Vanguard with my second, and about to enter into my new employer's 401k with an assortment of otherwise unrelated funds. Things are starting to get complicated.

Fidelity has been doing fine by me lately, although I remember a long period of disappointing returns. Vanguard offers some nice options, but performance has been lagging lately. The new 401k plan doesn't seem to offer anything interesting, other than the Vanguard Index 500.

I don't plan on touching any of this money until I retire, and I am inclined towards an aggressive mix, but I'm not sure what the pros and cons are of having my portfolio distributed among several institutions. Should I consolidate under one or two umbrellas, or maximize my options by keeping all three accounts?

I have initiated the process to convert the Vanguard 401k to a rollover IRA. Then, assuming I can handle the tax hit, I will convert this IRA and/or the Fidelity IRA to Roth IRA's. The new 401k looks like it will be invested 100% in VFINX. Allocations in the IRA's will be moved to FMAGX and VFINX.

With this distribution, I'm really not taking advantage of my many investment options, but it appears to have the best potential for long-term growth.

Anyone care to comment?>>


Within Fooldom, we prefer direct investing in individually selected stocks as opposed to mutual fund investing. In fact, most of us believe that if you choose to stay with funds, then the only one that makes sense is the Vanguard 500, which emulates the performance of the S&P 500 year in and year out. In the process, for well over a quarter of a century it has consistently beaten the pants off the vast majority of managed stock funds. To us, it's a "no-brainer" choice. While Magellan has been a good performer through the years, it has greatly fallen off the pace and lags the Vanguard 500 for each of the past five years. Therefore, if you're staying with funds, why mess with success?

Regards….Pixy



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Author: slwjpw Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9391 of 75794
Subject: Re: Retirement asset consolidation? Date: 3/24/1999 3:10 AM
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VFINX is good, SPY is just a little bit better.

Phil

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