No. of Recommendations: 0
<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
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.