I am opening my 401K with aprox. $10,000.00 before 4-15-2001 & am looking for a place to park it. Any suggestions for a good equity index fund?All suggestions sincerely appreciated and will be foolishly looked into.
Excuse me alizadeh, but there seems to be some confusion here. You may open a 401K plan for your employees only if you own a company. Then the plan is for the whole company and you would probably work with your accountant to find one that is affordable and meets your needs.There are several similar plans for small business owners.But individuals do not have their choice of 401K plans. Their employer offers one, and that is the only one they can choose. Those who work two jobs and thus have two employers offering 401K plans have a bit more choice, but thats a fairly rare occurence.
dunno where the understanding came from that alizadeh was creating a 401(k) for his/her employees... I read our fellow Fool had some money to bring into a new 401(k) (presumably from an existing plan) and wanted some advice on what to look for... ;)alizadeh, read through the series here on 401(k)'s and getting the most out of them. As well, pay very close attention to the fine-print of -both- plans you are dealing with (if I've assumed correctly above).Your former plan will most certainly have procedures and paperwork (if not fees as well) for ending your relationship. The new plan will likely have an equal number of boxes to check to move your balance into their management.Cast a Foolish eye on the choices your new plan offers you for both new contributions as well as transferred balances. You will hear more than one Fool jest on the foolishness of a passively managed equity index fund. If you're looking far and away to your retirement, you may do quite well following the market steadily upward this way.As for new contributions, if there are any matching funds from your new employer, I encourage you to save at least that much to get at that free money. If you cannot afford that much, invest what you can, but do try your best to take the bossman's money if he offers it. And, as always, get rid of any debt that may be holding you down! :)- Sco
dunno where the understanding came from that alizadeh was creating a 401(k) for his/her employees... I read our fellow Fool had some money to bring into a new 401(k) (presumably from an existing plan) and wanted some advice on what to look for... ;)I can see where the confusion came from. Most people are faced with choosing from among the relatively few options offered by their employer's plan and a generic recomendation ("Any suggestions for a good equity index fund?") would be of little help, unless one was choosing from among many plan providers, such as an employer would.Also, perhaps it was a coincidence, but his request; "I am opening my 401K with aprox. $10,000.00 before 4-15-2001 & am looking for a place to park it." indicated a need to deposit the funds by the tax deadline, which is usually only a concern for IRA contributions. By the term "opening" it seemed to give the impression that he intended to make a lump sum initial contribution.I wonder if, to some extent, the original poster has confused 401K's with IRA's.
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