i want to move my 401k from my previous employer into an IRA now that i have my own business. Now that the dow is way up, is this a better time to do this, or does it matter?
2006-10-19 11:53:17 · 7 answers · asked by dwampls 1 in Business & Finance ➔ Investing
You should be fine moving it now. Mutual funds hedge risk by investing in hundreds if not thousands of companies, so a well managed fund will almost always make money regardless of the market conditions. Moving to an IRA will allow you more control over your money. Make sure you start a SEP or a SIMPLE IRA as they have higher contribution limits for entrepreneurs. Depending on your age it should be around $4000 for a traditional or Roth IRA, and about $12500 for a SEP or SIMPLE. Make sure you're looking at the 10-year return of a fund in addition to one and three year averages. This will give you an idea of the fund managers ability to produce returns in a variety of markets. Check out American Funds, WM funds, and Franklin Templeton as they are some of the oldest fund companies with excellent track records.
2006-10-19 12:05:40 · answer #1 · answered by Jake 2 · 0⤊ 0⤋
If I were you, I'd move it to your IRA regardless of how the market is doing. You main goal should be control of your money, and right now you won't have full control of it until it's in your IRA. What if someone embezzles your 401k, or worst yet, the company goes belly up and so does that 401k? I'd contact your CPA or tax advisor, and I'm sure they'd agree you need that money in your IRA.
2006-10-19 15:33:08 · answer #2 · answered by Mike S 7 · 0⤊ 0⤋
sure, this can be a well transfer. Your 401k has restrained funding offerings. And they are not always well investments. As an IRA, you'll spend money on practically whatever. So you'll choose the quality mutual fund, bond, or inventory.
2016-08-31 23:37:54 · answer #3 · answered by ? 4 · 0⤊ 0⤋
I have been researching this for myself for a long time now. Vanguard has some excelent options. Check it out at vanguard.com. They have a lot of great information and a lot of different IRA options as well.
2006-10-19 12:04:00 · answer #4 · answered by normy in garden city 6 · 0⤊ 0⤋
Doesn't matter when you move it. Just move it! If done correctly this is not a taxable event.
This is one of the best financial events you can have. A self directed IRA allows you more quality choices of investments.
Make sure your "asset allocation" is done correctly. Try to keep your fees low (internal and external).
Good luck!
2006-10-19 12:37:36 · answer #5 · answered by Common Sense 7 · 0⤊ 0⤋
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2006-10-19 17:18:59 · answer #6 · answered by stock.geek 2 · 0⤊ 0⤋
I just did it this week. Took 4 days to complete all the transactions and I'm happy with it.'
2006-10-19 12:00:40 · answer #7 · answered by Bluealt 7 · 0⤊ 0⤋