401k. Start over w/ a new one and keep the original one at the bank? or roll over together to the new company?

Answer 1

As a former financial planner and financial strategist I could probably write a book on this subject. Some companies are set up where you can actually transfer your 401k to another company and some are not. You'll also want to know exactly what you're paying in fees. If you're investing in mutual funds you'll want to know what you're paying on top of the expense ratios.

Another thing to look at, other than your risk tolerance, time horizon, and overall financial goals is what exactly are you getting from your 401k at the bank? Who's got the better options options? How are the fees structured? I'm sure many of my financial planning colleagues will disagree with me, but I'm not a big fan of mutual funds. I believe in picking my own stocks from a well, diversified portfolio. But mutual funds a good to way invest if you dont' have the time or inclination to be more active in your own portfolio.

You also have the option of rolling your 401k into an IRA. With over 16,000 mutual funds, and thousands of mutual fund / investment companies to roll over your 401k in.......you really have more control over your investments than you think. Check with the 401k administrators and see if there are any penalties of any kind for moving it over. You might have to wait.

Rod

Answer 2

Depending on the amount, you might be better off keeping them separate.One of the difficulties I have experienced with 401k benefits companies was actually being able to contact someone and/or make changes to my allocations. (This isn't as hard as with a bank offering online services.)

Your question did not request anything about ROTH IRA's, or ROTH 401k's - but if your company offers a ROTH 401k, you should strongly consider it. You won't get the "tax breaks", but for a number of reasons, these "tax breaks" only delay the taxes, and may cause problems later in life. This would then require separate accounts.

Answer 3

Roll your old 401(k) into an IRA.

The IRA is a better mousetrap and much less restrictive than a 401(k). The IRA will offer many more investment options than a 401(k)...not to mention the fact that YOU get to choose your financial provider with an IRA. Your employer chooses the
401(k) financial provider.

Besides that, you can convert your IRA into a tax free investment if you'd like to....that option is not available inside a 401(k).

Answer 4

A lot of companies have waiting periods for opening 401(k) for new employees, so you might have an outside change of getting some matching contributitons from the get go if you rollover.

Answer 5

It is easier to manage the account at one place. So roll over to new place.
The other benefit is you have larger amount of money to produce a larger return.
In the meantime, learn how to invest properly
Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.

http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com>... university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:

fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy

technical analysis==(chart+indicator)>> when to buy

Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live

At the age of 32. my 401k is amassed 74,000.00 and 30000.00 in taxble account. by follow simple rule

Answer 6

More than likely you will need to have it joined with the new company.