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401K question

July 29th, 2017 at 11:01 pm

Now that I am unemployed, and all that goes with it, I am really wondering what I should do with my 401K. I just got my statement and it is $26k with some change with MassMutual. Should I leave it? Roll it over to an IRA? Wait for a new job that will hopefully have a retirement plan?

I have been debating on rolling over it to Capital One's ShareBuilder since then most of my accounts are in one place and I will see it more frequently. It would be the "easiest", but probably not the smartest?

I honestly have very little interest in actively managing stocks, as it is knowledge I am not interested in and I am horrendous at gambling/risk taking type things.

I know I do need to learn more, and I will, but my brain cannot take on more knowledge right now. I am out of time as it is between the kid's therapies, my schooling, job hunts, and trying to keep the household together.

Any thoughts? Helpful articles?

Posted in Uncategorized | 8 Comments »

8 Responses to “401K question”

  1. CB in the City Says:
    July 29th, 2017 at 11:48 pm 1501372119
    1501372119

    Well, I'm no expert, but I would leave it, trusting that a new job will come along, and you might be able to roll it over to the new account.

  2. frugaltexan75 Says:
    July 30th, 2017 at 01:19 am 1501377595
    1501377595

    I agree with CB.

  3. AnotherReader Says:
    July 30th, 2017 at 04:07 am 1501387637
    1501387637

    You may not be able to leave the money there, depending on your former employer's policy. Because it's managed by an insurance company, the fees are likely quite high and the fund selections are likely poor anyway. You could roll the 401k over into an IRA at Vanguard or Fidelity. Pick a low cost target date fund that automatically becomes more conservative as you get to that date. No management required.

    Whatever you decide, don't let them send you the money as a distribution. You will owe income taxes and a penalty if that happens.

  4. Petunia 100 Says:
    July 30th, 2017 at 05:12 am 1501391520
    1501391520

    Personally, I would absolutely roll it someplace with quality, low cost offerings. MassMutual is not known for being low cost.

    Are you job hunting? Best of luck. Smile

  5. creditcardfree Says:
    July 30th, 2017 at 12:42 pm 1501418574
    1501418574

    I would NOT leave it or wait to roll to a new employer plan. Both will have higher fees than no load (low cost) companies like Vanguard, T Rowe Price and Fidelity. Another Reader's idea of a target date fund is excellent advice. Along with having Mass Mutual sending the money directly to the company and fund of your choice. This is very common practice.

    Do it sooner than later, just to have peace of mind that it is done!!

  6. MonkeyMama Says:
    July 30th, 2017 at 01:32 pm 1501421533
    1501421533

    I would roll it over to an IRA, agreeing with last 3 comments. Vanguard has Target Retirement funds. You just choose the date you expect to retire. So maybe "Target Retirement 2050"? You can choose another date if I am way off.

    For the long run, you can invest in anything if you move it over to a Traditional IRA. Which will allow you to keep costs down (you will have more choices).

    You can just initiate the transfer at Vanguard. I am just recommending VG because it's so easy and is the lowest cost. Fidelity and T Rowe are great also. But for VG you can initiate the rollover here: https://personal.vanguard.com/open-account/oax/app/triage#/

  7. rob62521 Says:
    July 31st, 2017 at 02:20 pm 1501510838
    1501510838

    Good luck job hunting!

  8. elitaylor646 Says:
    August 1st, 2017 at 09:53 pm 1501624422
    1501624422

    Thank you all for your advice! I think I will roll it over, probably to Vanguard, since I called my 401K since they haven't updated my name yet, and found out that my company goes thru another company to Mass Mutual. Therefore the fees would be higher yet since I am sure they all want a cut. Now to wait to make sure they have all the updates done before attempting a mess of a transfer.

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