401(k) rollovers?

alafairnadia · January 2008

I'm a financial disaster - I'm the first to admit it - and live in a constant state of shock that I actually own a home and can function on a day-to-day basis. (seriously - I haven't even done my 2006 taxes despite the fact that I'm getting $$ back. argh)

unfortunately, sometimes situations become rather do-or-die and I'm in one of those. I've resigned my current job and need to rollover my 401(k). my current plan is with fidelity. is the path of least resistance to just go to fidelity's nearest office and beg them for help? (cause I also kinda somehow lost some sick amount of money in the last quarter in my investments so I'm guessing that stuff needs to get shifted about a bit) or should I just write a big check to a financial planner and beg that person for help? cause there's no way I can do this on my own.

thanks!

doctorj · January 2008

Walking into Fidelity and begging for help sounds like a good plan. Whoever you go to is going to fleece you, but if you leave the money more or less where it's already parked, you probably don't get fleeced an extra time.

From what I've heard, due to competition, Fidelity has lifted its game lately. Some cheaper offerings, less dead wood.

Alternatively, if you already have an IRA through another brokerage and you're happy with them (e.g. for better or for worse I have mine at the same place as my mortgage and checking) then you could move it there. Again, for various costs, overt and/or hidden, they'll be only too happy to take your money and give you advice.

As for rebalancing, now's a good time, as your stocks probably lost 25% since October. Basically you decide how much you want in US stocks, how much in non-US stocks, and how much in bonds. A minimalist solution would be to pick 3 index funds. An even more minimalist solution would be a target retirement date fund. For example, if you're staying with Fidelity, put the lot in Fidelity Freedom 2030 (FFFEX), Fidelity Freedom 2035 (FFTHX) or Fidelity Freedom 2040 (FFFFX) (i.e. approximately the year you're likely to retire) and let their computers manage it for you from now until then.

doctorj · January 2008

Walking into Fidelity and begging for help sounds like a good plan. Whoever you go to is going to fleece you, but if you leave the money more or less where it's already parked, you probably don't get fleeced an extra time.

From what I've heard, due to competition, Fidelity has lifted its game lately. Some cheaper offerings, less dead wood.

Alternatively, if you already have an IRA through another brokerage and you're happy with them (e.g. for better or for worse I have mine at the same place as my mortgage and checking) then you could move it there. Again, for various costs, overt and/or hidden, they'll be only too happy to take your money and give you advice.

As for rebalancing, now's a good time, as your stocks probably lost 25% since October. Basically you decide how much you want in US stocks, how much in non-US stocks, and how much in bonds. A minimalist solution would be to pick 3 index funds. An even more minimalist solution would be a target retirement date fund. For example, if you're staying with Fidelity, put the lot in Fidelity Freedom 2030 (FFFEX), Fidelity Freedom 2035 (FFTHX) or Fidelity Freedom 2040 (FFFFX) (i.e. approximately the year you're likely to retire) and let their computers manage it for you from now until then.

alafairnadia · January 2008

thanks for the assists, all. I went to fidelity at lunch today and they were incredibly helpful. yay!

alafairnadia · January 2008

thanks for the assists, all. I went to fidelity at lunch today and they were incredibly helpful. yay!

401(k) rollovers?

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