gumbico
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 15 Feb 2006
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| 401k to IRA questions |
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hi all, i'm 28 and about to head back to gradschool for the next 2 years. I like my 401K plan (JohnHancock) but I don't want to deal with my employer. I already spoke with JH and they said I can't keep my money with them in a Traditional IRA as an individual investor (must have broker). So basically, I need to move my money into an IRA somewhere else. I already have a Roth IRA with another institution. I read that IRA contributions for a year can't be over $4k, but can be split between a Traditional IRA and a Roth.
-Does this rule affect 401K rollovers into an IRA? If this rule doesn't affect rollovers, does that mean I can open up a Traditional IRA, fund it with my 401K funds, and still be able to contribute $4k into my Roth?
-Also, any recommendations on institutions that provide Traditional IRAs to individual investors with good performining agressive funds (my avg rate of return has been around 20%)?
thanks!
--nevermind - I just called up Vanguard and the kind fellow answered my questions. What's the general opinion of Vanguard around here?
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Wed Feb 15, 2006 4:17 pm |
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xboxundone
Senior Member
Cash: $ 67.83
Posts: 795
Joined: 19 Sep 2004
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Vanguard is great as they have many low fee or no fee mutual funds!
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Wed Feb 15, 2006 6:10 pm |
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Jaszbo
Preferred Member
Cash: $ 35.90
Posts: 177
Joined: 03 Jan 2006
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Ok your 401k plan was pretaxed dollars and a Roth IRA is after tax dollars. If you have a 401k plan and you left the company a lot of companies let you keep the investment, but you can't contribute. From what you have said it looks like they want you to take the money, then I would covert it to a tradtional IRA. Even though the limit is 4k a year, you can transfer everything to a tradtional IRA. Actually the majority of people are better off at retirement moving their 401k plan to a tradional IRA. With a tradtional IRA, you genereally have more investing options. The 401k plan generally gives you match and getting your company matching is a nobrainer, so most people go with the 401k plan.
I would not personally convert any of it into a Roth IRA, unless for some reason you want it to be a Roth IRA. One reason is you are going to pay the highest taxes for it and if you do a large sum you'll most likely pay 30% on taxes for moving it over. Why would you want the IRS to keep most of your money, so it's recommended to slowly convert to a Roth IRA from a tradtianal IRA or just have both.
I would recommend vanguard also, but past performance doesn't mean anything. If you only care about past performance, go with
vanguard's Energy Fund Investor it returned 63% last year. If anything you are more likely not to get the same performance as past performance. Look at health care also, it's had a pretty good 10 year return. Personally I wouldn't invest in any of these for a retirement plan. Todays winners could be tomorrows loosers.
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Wed Feb 15, 2006 8:00 pm |
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Jaszbo
Preferred Member
Cash: $ 35.90
Posts: 177
Joined: 03 Jan 2006
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muneepenee
I'm not sure why you keep writing with a language that's very hard to read. You seem to give good advice, but it's very difficult for me to try and translate what you are saying. If you were speaking like this I'm sure I wouldn't have a problem, but to write a made up language makes it very difficult. I saw your web page at http://www.munee.info/, which I would love to read some articles in there, but it gives me a headache to try and understand what you are saying. It's hard enough to understand peole when they write in proper English. I'm sure people have read things I've written and were beyond confused, but when you write in a way that makes it difficult to read it's very hard.
It does seem like you are very consistent with the way you write. You aren�t following any rules as I can see, but if you write �tu� for �to�, then you are doing it throughout your message, but it seems like you are even using something to convert English into this. The reason I say this is your web page has some ASCII characters that aren�t presented properly, which indicates to me a copy and paste.
I would much rather have you write in Spanish than in this form of what is not even English or Ebonics, it�s something in between. I�ve said something to you before about this, but you just ignore the posts.
We are all here to learn from each other, but it�s very difficult to read your posts. I�m not sure if most people just ignore your posts, but I have a hard time with things like this �Em dont need tuno nuthan� What does that mean? I think Em = they, but the rest I can�t figure out. They don�t need to do anything? Maybe? Maybe not?
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Wed Feb 15, 2006 10:17 pm |
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JCook
Full Member
Cash: $ 11.20
Posts: 56
Joined: 24 Jan 2006
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I have dealt with Vanguard for over 10 years now and have been very satisfied. I also rolled a 401k over into an IRA at Vanguard seven years ago.
I highly recommend Vanguard, it's hard to beat their low expenses and fund selections.
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Tue Feb 21, 2006 3:05 am |
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