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hello all,

i've been with an investment advisor up to this point all caught up in tax-defered mutual funds... i'm soon
going to make the break from this guy and assume responsibility for my own money
management. my question is, can i roll the tax-defered
mutual funds over in to something else tax-defered without a penalty? can anyone point me in the direction
of some good links to research this?

thanks much,
woofgrrl
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No. of Recommendations: 2
http://www.irs.ustreas.gov/forms_pubs/pubs/p5900106.htm says, in part, "Traditional IRA rules permit you to transfer, tax free, assets (money or property) from other retirement programs (including traditional IRAs) to a traditional IRA. The rules permit the following kinds of transfers.

Transfers from one trustee to another.
Rollovers.
Transfers incident to a divorce."

Does that help with your question?

Your probably better off without the investment advisor, unless the advisor is your sibling and works for free.

What did you mean by "tax-deferred mutual funds"? There are tax-managed mutual funds, where management takes some responsibility not to run up shareholders' current income taxes. Almost any mutual fund might be held in a tax-deferred or tax-sheltered account, such as an IRA. I haven't heard of a tax-deferred mutual fund.

No one else will watch out for your interest the way you will.

the hard-bitten Chips, who keeps most of his retirement money in index funds
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No. of Recommendations: 0
hello all,

i've been with an investment advisor up to this point all caught up in tax-defered mutual funds... i'm soon
going to make the break from this guy and assume responsibility for my own money
management. my question is, can i roll the tax-defered
mutual funds over in to something else tax-defered without a penalty? can anyone point me in the direction
of some good links to research this?

thanks much,
woofgrrl


I applaud you for deciding to go-it-alone. Anyone with just the basic understanding of money and investing doesn't need to PAY someone for something they can do on their own. A good place to start is The Vanguard Group at www.vanguard.com This is an excellent web site for investing information and education. They'll send you all the information you need to know to make "sound" investing decisions...and they won't charge you a dime for it! Good luck.
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woofgrrl: i've been with an investment advisor up to this point all caught up in tax-defered mutual funds... i'm soon going to make the break from this guy and assume responsibility for my own money management. my question is, can i roll the tax-defered mutual funds over in to something else tax-defered without a penalty? can anyone point me in the direction of some good links to research this?

Good decision. I did the same 12 months ago after watching the mutual funds in the IRA managed by my financial advisor languish. Not to fault that advisor; when we first went there, I had zero knowledge or confidence to manage these myself. But all the conversations started my curiosity, and that ultimately led me to read The Motley Fool Investment Guide [which you should read if you haven't].

I started with a cash account at E*Trade a couple years ago, did a little investing, had success (Yes, I know, any monkey could have during this bull market..).... felt knowledgeable and confident enough to take on my IRA.

So, a year ago, I paid a penalty (to AmEx, not IRS) for closing that account, rolled it into an IRA at E*Trade. And now, a year later, I didn't just beat the Dow, didn't just beat the S&P, didn't just beat the NASDAQ: my IRA increased by a factor of 2.5 times in one year. Careful research was the heart of it, along with following a lot of the materials here on these boards. There's no guarantee of results, of course, and I fully recognize that I was simply lucky in some good choices.

But I would encourage you to continue. Look at brokerage firms like E*Trade and the others -- they all have IRA accounts and can accept roll-overs. The IRS allows the roll overs. I had to pay a penalty for breaking my contract with the advisor, and that may or may not apply in your situation. I'll tell you this: it was one of the best penalties (yes, in retrospect) I've ever had to pay!

mathetes
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