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Can you school me on investments?

mrsnalamrsnala member
in Working Moms
I have a 401(k) and a pension plan from my old job that I am trying to decide what to do with. Not sure if I should roll them over to my new jobs 401(k) plan or open up an IRA. Any thoughts?

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Re: Can you school me on investments?

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    CarrieB.CarrieB. member
    https://www.forbes.com/sites/financialfinesse/2013/01/24/7-reasons-not-to-roll-your-orphan-401k-to-an-ira/
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    jlaOKjlaOK member
    I prefer rolling over to an IRA versus 401k for the reasons @mal922 listed and also for the control factor.  I like the fact that an IRA is 100% mine and not tied to a 2nd party (work).  I'd much rather communicate with my investment person rather than try to find out information through HR who aren't experts in investing.  Also, if you leave the new job I like the idea of not having to worry about another rollover.
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    MammaBear81MammaBear81 member
    jlaOK said:
    I prefer rolling over to an IRA versus 401k for the reasons @mal922 listed and also for the control factor.  I like the fact that an IRA is 100% mine and not tied to a 2nd party (work).  I'd much rather communicate with my investment person rather than try to find out information through HR who aren't experts in investing.  Also, if you leave the new job I like the idea of not having to worry about another rollover.
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    FemShepFemShep member
    There's no easy answer because it depends on your individual circumstances. If your former employer covers the 401(k) fees, you're happy with your investment choices, and you're not required to roll the 401(k) over, you can keep it where it is. If you're being charged management fees, look at the fees with your new employer's 401(k), and if they're lower, roll it over. 401(k)s are required to have a minimum mix of investments, so you will generally find comparable, if not the same, investments in a new plan, but again, pay attention to fees-they can eat at your returns! Also look at fees for rolling over into an IRA. Secondary considerations include whether new current 401(k) allows for a loan, whether your new company is stable (if the company goes bankrupt, your 401(k) may be frozen for a time while plan management is investigated). Whatever you do, do NOT do a straight withdrawal. You will need to pay taxes on the income as well as a 10% fee.
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    CarrieB.CarrieB. member
    As a note, due to the fee disclosure rules that came out from the DOL in 2013, there's lots of information on how much you are being charged in your new employer's 401k.

    Your employer is required to provide education too. So just ask. Your 401k provider may have planning software that will assist you with making investment allocation and contribution level decisions.
    IVF, acupuncture, meditation and a miracle. 

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     Our sweet Valentine's Day FET.

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