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Subject:  Re: What to do with my 401(k)? Date:  1/24/2000  10:04 PM
Author:  xlopresti Number:  1726 of 21723

Without hesitation, roll the money into an IRA at an online broker. E*Trade, Schwab, Fidelity, Suretrade, Quick & Reilly, Vanguard, take your pick. In my opinion, there's no reason to move it into your new employer's plan. It's not going to be as flexible as an account with one of the above. Yeah, you won't be able to borrow from yourself, but you shouldn't anyway. Pick a mix of mutual funds and stocks you feel comfortable with. If you plan to trade a lot, pick a broker with lower commissions. All of the above have an extensive list of no-load mutual funds from which to pick (Two of my favorites are RSEGX and RSDGX). If you have sizable funds and your plan allows, roll over your funds in a series of payments. Move some, wait for it to arrive, then invest it and start the next move the same day. This is the only way you'll be able to avoid volatility in the market. Also, one very important point: if you have company stock, you may be eligible to transfer it to a non-IRA account and pay income tax only on the cost basis. The tax on the gain would not be due until you sell the shares and then it will only be at the long term capital gains rate instead of income rate. To be eligible however, the series of distributions must be made within one calandar year (ie a lump sum distribution).

I just did this last year and had lots of fun. Hey, I even bought some QCOM at 143 in August. Wouldn't have been able to do that in my previous employers plan. Good luck.
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