Looking to roll over my old 401k. Which IRA should I choose?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
INTRESIS
Posts: 94
Joined: Sat Nov 15, 2014 12:39 pm

Looking to roll over my old 401k. Which IRA should I choose?

Post by INTRESIS »

I recently switched jobs and have like $45k in my old 401k. I'm looking to open an IRA soon so that I can put in a maximum contribution for the 2018 tax year before tax day. I also plan on rolling over all of the moving in my old 401k into this IRA. I'm 31 years old. I've been watching my old 401k lose value for the last several months since the stock market has been doing poorly, so I'm looking to put it into less risky choices for now, and switching back to higher risk stocks once the stock market picks back up again.
User avatar
dogagility
Posts: 1155
Joined: Fri Feb 24, 2017 6:41 am

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by dogagility »

INTRESIS wrote: Sat Jan 19, 2019 9:34 pm I recently switched jobs and have like $45k in my old 401k. I'm looking to open an IRA soon so that I can put in a maximum contribution for the 2018 tax year before tax day. I also plan on rolling over all of the moving in my old 401k into this IRA. I'm 31 years old. I've been watching my old 401k lose value for the last several months since the stock market has been doing poorly, so I'm looking to put it into less risky choices for now, and switching back to higher risk stocks once the stock market picks back up again.
Is your question about rolling into a Roth vs Traditional IRA? Are you asking about how to allocate your investment among different investment categories (equity vs fixed income)? Not sure what you are really asking here.

However, you statements about market timing are not an appropriate way to think about investing. The very recent past has no predictive capability to future returns.
All children spill milk. Learn to smile and wipe it up. -- A Farmer's Wife
mcraepat9
Posts: 1619
Joined: Thu Jul 16, 2015 11:46 am

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by mcraepat9 »

INTRESIS wrote: Sat Jan 19, 2019 9:34 pm I recently switched jobs and have like $45k in my old 401k. I'm looking to open an IRA soon so that I can put in a maximum contribution for the 2018 tax year before tax day. I also plan on rolling over all of the moving in my old 401k into this IRA. I'm 31 years old. I've been watching my old 401k lose value for the last several months since the stock market has been doing poorly, so I'm looking to put it into less risky choices for now, and switching back to higher risk stocks once the stock market picks back up again.
Are you sure rollover IRA is the best move for you?

What is your MAGI? If you ever need to do a Backdoor Roth IRA, the rollover will make that move problematic.
Amateur investors are not cool-headed logicians.
Topic Author
INTRESIS
Posts: 94
Joined: Sat Nov 15, 2014 12:39 pm

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by INTRESIS »

mcraepat9 wrote: Sat Jan 19, 2019 9:55 pm
INTRESIS wrote: Sat Jan 19, 2019 9:34 pm I recently switched jobs and have like $45k in my old 401k. I'm looking to open an IRA soon so that I can put in a maximum contribution for the 2018 tax year before tax day. I also plan on rolling over all of the moving in my old 401k into this IRA. I'm 31 years old. I've been watching my old 401k lose value for the last several months since the stock market has been doing poorly, so I'm looking to put it into less risky choices for now, and switching back to higher risk stocks once the stock market picks back up again.
Are you sure rollover IRA is the best move for you?

What is your MAGI? If you ever need to do a Backdoor Roth IRA, the rollover will make that move problematic.
I make $85K a year before taxes and I have $60K saved up. Also looking to buy a house soon.
User avatar
David Jay
Posts: 9637
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by David Jay »

Let’s start at the beginning: custodian. There are a lot of possible low-cost brokerages but the most commonly mentioned around here are Vanguard, Fidelity and Schwab. All provide a wide selection of low cost mutual funds.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
lakpr
Posts: 6262
Joined: Fri Mar 18, 2011 9:59 am

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by lakpr »

Please check with your current employer's 401k plan if they would allow an incoming rollover of funds from your previous empliyer's plan. Apart from complicating the process for a future backdoor Roth (you may not need it now or in the near future with your salary, but rest assured the day would come when you will need it), IRAs also offer quite weak protections compared to 401k plans.

Secondly, you should be looking for the stock market to tank so that you can buy stocks at a discount. Buy low Sell high and all that? But if it is of any assurance to you, the stock market has actually appreciated 14%!! from its low on December 24th. In just one month!! It has been quite a big rally, and you missed it.

Lastly, for your IRA I would suggest either Vanguard or Fidelity or Charles Schwab. You can't go wrong with any of them. As to which fund to invest in, you should first tell us what your objectives are. Also, what your time horizon is.
Topic Author
INTRESIS
Posts: 94
Joined: Sat Nov 15, 2014 12:39 pm

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by INTRESIS »

Between Vanguard, Fidelity, and Charles Schwab, which one is the best? Also, I am favoring the idea of a tIRA over a Roth IRA because I think I will probably be making more money now than in retirement.
Topic Author
INTRESIS
Posts: 94
Joined: Sat Nov 15, 2014 12:39 pm

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by INTRESIS »

My new 401k is in Fidelity, so I would like to try something different for my IRA.
Topic Author
INTRESIS
Posts: 94
Joined: Sat Nov 15, 2014 12:39 pm

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by INTRESIS »

What about Ally, Merrill Edge, TD Ameritrade, Wealthfront, Betterment, and SoFi?
drk
Posts: 1926
Joined: Mon Jul 24, 2017 10:33 pm
Location: AWOL

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by drk »

For your old 401k, I co-sign rolling it into your new 401k rather than to an IRA.

For your IRA, Vanguard, Fidelity, Schwab, Merril Edge, E*Trade, and TDA are all common recommendations, with the first three more recommended than the latter three. Ally seems like a reasonable option. I cannot recommend any of the robos you listed, although using one for one year’s IRA contribution to experience the platform fee-free could be interesting (if that’s what you’re looking for).
User avatar
F150HD
Posts: 3304
Joined: Fri Sep 18, 2015 7:49 pm

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by F150HD »

lakpr wrote: Sat Jan 19, 2019 11:25 pm Please check with your current employer's 401k plan if they would allow an incoming rollover of funds from your previous empliyer's plan. Apart from complicating the process for a future backdoor Roth (you may not need it now or in the near future with your salary, but rest assured the day would come when you will need it), IRAs also offer quite weak protections compared to 401k plans.

Secondly, you should be looking for the stock market to tank so that you can buy stocks at a discount. Buy low Sell high and all that? But if it is of any assurance to you, the stock market has actually appreciated 14%!! from its low on December 24th. In just one month!! It has been quite a big rally, and you missed it.

Lastly, for your IRA I would suggest either Vanguard or Fidelity or Charles Schwab. You can't go wrong with any of them. As to which fund to invest in, you should first tell us what your objectives are. Also, what your time horizon is.
sorry, what did they miss? considering the cost is about what is was a year ago....anytime is good to get in for a long term hold.

Image
Long is the way and hard, that out of Hell leads up to light.
lakpr
Posts: 6262
Joined: Fri Mar 18, 2011 9:59 am

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by lakpr »

I was responding to the original poster's statement that he would feel comfortable investing only if it looks like the stock market is steadily climbing and not dropping. I was reassuring him that it is exactly what is happening right now, but by holding off to invest only in such rising environment, he is actually missing big rallies.

AGREED wholeheartedly with you that the best time to start investing is TODAY.

Edited to further clarify: I was also remarking that it seems no one even noticed the remarkable 14% rise in stock market valuations (all I saw was only remarks how the stock market tanked last year; nomention of the bull run since then, not in this thread nor in any other post in this forum) since Dec 24th. That is the "miss" I was trying to draw everyone's attention to.
mcraepat9
Posts: 1619
Joined: Thu Jul 16, 2015 11:46 am

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by mcraepat9 »

INTRESIS wrote: Sun Jan 20, 2019 4:55 pm My new 401k is in Fidelity, so I would like to try something different for my IRA.
I would roll your old 401k into your new 401k assuming the fund options are halfway decent. I don’t think there’s a lot to be gained by “try[ing] something different” in terms of custodian.
Amateur investors are not cool-headed logicians.
mcraepat9
Posts: 1619
Joined: Thu Jul 16, 2015 11:46 am

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by mcraepat9 »

INTRESIS wrote: Sun Jan 20, 2019 4:58 pm What about Ally, Merrill Edge, TD Ameritrade, Wealthfront, Betterment, and SoFi?
Ally, Merrill, TDA are all basic custodians, nothing special.
Wealthfront and betterment make no sense because of the fees and the fact that their most useful feature (automated tax loss harvesting) is not relevant in an IRA.
Sofi I know nothing about.

Do yourself a favor and stick with fidelity.
Amateur investors are not cool-headed logicians.
User avatar
Earl Lemongrab
Posts: 7270
Joined: Tue Jun 10, 2014 1:14 am

Re: Looking to roll over my old 401k. Which IRA should I choose?

Post by Earl Lemongrab »

How much is in the prospective rollover? I always like to get bonuses, so I'd look at one of the available ones. The amount will help to determine the best option.
Post Reply