Recommendation For Roth IRA

[MattKellett]

I received some great news that my company is now no longer offering 401k!!!

So I'm looking to transfer into a IRA or Roth IRA. I just don't know where to start to research this, apart from the Investment Company's websites.

Can anyone recommend a website where I can research the difference between IRAs or any personal recommendations for companies that you have used for an IRA.

Many thanks

[tc-sacto]

http://www.fool.com/Money/AllAboutIRAs/AllAboutIRAs.htm

[pwd72s]

How old are you? This should be a huge factor in your decision...

What investment company do you mean? Do you know their fee structure?

Yes, fees matter...a LOT.

[lukeh]

Fees matter a lot but rate of return after fees matters most. Don't pick an index fund. Pick a fund/manager that has beat the indexes consistently over the long term.

You can't move from a traditional 401k to a ROTH without paying all the taxes. Depending on your age that may or may not be a good idea. If you have no clue what you are doing and you have a larger dollar amount in your 401k hire a fee only financial planner for an hour. I'm sure you wouldn't be cheap and let some guy on the net tell you how to treat the chest pains your having so don't be cheap and let some article on the net tell you how to best invest your 401k. Hire a professional.

[VincentVega]

What were you invested in within the 401k? Are you happy with it's performance/risk/return/... ? If so, just buy it again in the IRA/Roth. The fund house or brokerage you are moving too does all the heavy lifting, just make sure you dont get the distribution check in your name.

[MattKellett]

I'm 39, previously invested with John Hancock, where they manage per requested risk level. For example I was able to divide my investment in different risk levels. Then in each of these levels were numerous funds they invested in. The value of my 401k is about $65000

So I'm just starting to research the different IRAs.

Just looking for experiences that others have had

[Evans, Marv]

Now may be a good time to do it. If your 401K has gone down in value like most have, you'll pay less taxes when you do the conversion.

[pwd72s]

Originally Posted by Evans, Marv

Now may be a good time to do it. If your 401K has gone down in value like most have, you'll pay less taxes when you do the conversion.

Good thinking. One fund you may want to research, since you seem hesitant about self management, is a "target retirement fund" by Vanguard. This fund uses a mix of top quality bonds and equities (stocks). They change the mix as your target retirement date gets closer, placing you at less risk in the event of a sudden market downturn before retirement.

I like Vanguard a lot...but Cindy & I manage ourselves. The reason we like Vanguard so much is their low fee structure. Yes, fees DO matter...a lot. It has yet been demonstrated to me that load or high fee funds can outperform no load funds. Any fund can look good for a short period of time, but over a long haul, many fall below simply buying a total market index fund.

The latest issue (Feb. 2nd) of Barron's has an interesting article beginning on page 34 titled "The best families in a bruising year". Good reading. A library near you should have a copy.

I'd suggest checking with a CPA on the switch...maybe a good CPA could suggest other moves looking at the tax angle. At your relatively young age, I'd guess
a Roth would probably be the better move, assuming you are going to be forced to switch this to an IRA.

www.vanguard.com for more reading.

It's your money. Nobody here...or anywhere...will care about it as much as you should.