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401k to IRA

Old 01-14-2017, 06:47 AM
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Default 401k to IRA

I have a 401k with Fidelity now and it seems like i'm not were I should be at this point in the game. I am invested in a fund that goes by your retirement date and invests accordingly.I have less than 10 years to go.I called fidelity and they recommended that I transfer the money to an IRA and they will have better options to invest and manage it for me.One thing that concerns me is that an IRA is not safe from law suits as a 401k. I am not good at investing and I need someone to manage my money. Should I just let the money ride where it is or should I go with the IRA from fidelity? Thanks in advance.
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Old 01-14-2017, 06:49 AM
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I transferred my last company's Fidelity 401k to a Fidelity IRA, but I selected my own investments. Very happy with Fidelity.

You should consider speaking with a CFP, THT member Sprokets is a CFP and I am sure he could offer some initial advice.
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Old 01-14-2017, 06:58 AM
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Originally Posted by Fish'nFool View Post
I transferred my last company's Fidelity 401k to a Fidelity IRA, but I selected my own investments. Very happy with Fidelity.

You should consider speaking with a CFP, THT member Sprokets is a CFP and I am sure he could offer some initial advice.
Thanks! I'm not a CFP but I've been a fee-only RIA for 17 years and a CPA about 30.

There are a lot of variables in what the OP posted. I'm not a fan of target date funds for several reasons. Most important is that not everyone's needs are the same.

Are you still working for the Company whose 401k you are referring to?

I'm on a mini vacation so I won't be on here as much as usual. You can PM me if you'd like.
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Old 01-14-2017, 06:59 AM
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Originally Posted by Fish'nFool View Post
I transferred my last company's Fidelity 401k to a Fidelity IRA, but I selected my own investments. Very happy with Fidelity.

You should consider speaking with a CFP, THT member Sprokets is a CFP and I am sure he could offer some initial advice.
Fidelity has tons of options. Make sure you do a direct transfer. Do not take possession of the account in between the transfer. Fidelity does hundreds of these every day. They can walk you through the process. Very painless.
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Old 01-14-2017, 07:05 AM
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I've been happy with Fidelity. If you know nothing about investing and don't want to learn, the target date funds are as good a choice as any. You should look at one thing before moving the money to an IRA. I found the fees I was being charged for my 401k at Fidelity were lower than the fees for the same investments in a Fidelity IRA. That was because my company had negotiated discounted fees due to the size of our workforce. If you're going to stay with the target date fund, keeping the investment inside the 401k might cost you less.

If you are worried about lawsuits, you should have an umbrella liability insurance policy.
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Old 01-14-2017, 07:08 AM
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Originally Posted by Sprockets View Post
Thanks! I'm not a CFP but I've been a fee-only RIA for 17 years and a CPA about 30.

There are a lot of variables in what the OP posted. I'm not a fan of target date funds for several reasons. Most important is that not everyone's needs are the same.

Are you still working for the Company whose 401k you are referring to?

I'm on a mini vacation so I won't be on here as much as usual. You can PM me if you'd like.
Got it, thanks for the correction. It doesn't diminish my opinion of you.
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Old 01-14-2017, 07:09 AM
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Originally Posted by Sprockets View Post
Thanks! I'm not a CFP but I've been a fee-only RIA for 17 years and a CPA about 30.

There are a lot of variables in what the OP posted. I'm not a fan of target date funds for several reasons. Most important is that not everyone's needs are the same.

Are you still working for the Company whose 401k you are referring to?

I'm on a mini vacation so I won't be on here as much as usual. You can PM me if you'd like.
Agreed, considering you might live another 30 years.
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Old 01-14-2017, 07:12 AM
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That target date fund doesn't need anyone else to "manage" it.

Kind of like a set it and forget it.
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Old 01-14-2017, 07:44 AM
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Target date funds were originally designed as a CYA for plan trustees. They are an easy choice.

The problem is that they don't address the most critical risk which is running out of money. They tend to be too conservative as you near retirement. It takes a lot of money to fund a 20+ year retirement. Most risk tolerance questions deal with behavior issues, which can be addressed through education.
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Old 01-14-2017, 07:50 AM
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Too conservative" is subjective and someone must know risk tolerances to know what is conservative to the investor.

Regarding risk...

Set it for 20 years after the retirement date you chose and you'll have a more risky weighting at retirement.

Set it for your actually retirement date and you'll have less risk and less likely to lose...yada, yada, yada.
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Old 01-14-2017, 08:19 AM
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Originally Posted by Esuomm1 View Post
Too conservative" is subjective and someone must know risk tolerances to know what is conservative to the investor.

.
Is that yer professional opinion mouse?

What did you say you did for a living again?
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Old 01-14-2017, 12:52 PM
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I would avoid target date funds. An interesting project is to look at the offerings from different fund families and you can see how much they vary from fund to fund for the same retirement date.
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