401K moved to IRA - what to do?

[JavaBrewer]

Folks,

I recently changed employer (I'm employee #4) who does not yet offer a 401K. Wanting to have my retirement and brokerage accounts under the same roof I rolled over my 401K into a Traditional IRA over at Scottrade. The money has been sitting there for 2 weeks as I ponder where to invest - a good thing I guess considering the financial market woes the last week or so.

Looking for a long term option and I'm considering a mutual fund along the lines of T Rowe Price 2030 retirement. I have no inclination for financial investing and I don't really follow the stock market - does my thinking make sense? Any reason NOT to go this route?

Thanks!

Edit - as Matt pointed out I rolled over my 401 to the IRA.

[MattKellett]

David - I had a similiar situation last year when my company decided to end the 401k plan. I rolled over my 401 into an IRA too - I assume you did a roll over also.

I went with Charles Schwab and I have gone with one of their managed portfolios, which basically means that I decide upon the risk level and then they select investments within that level. Most of the investments are various mutual funds etc. so that within each of these funds is a wide range of investments too. For this service I pay 0.5% portfolio value per year, with the first year without fees.

So far my IRA has been slightly ahead of the stock market, so I'm pretty happy about the results. I know if I had to start selecting investments, I probably wouldn't have done as well.

[Hugh R]

Probably not a bad way to go. I put mine in about a dozen mutual funds at Schwab about 7 years ago. Most are up from purchase, but down 15% or more from the October, 2008 highs. If you buy your own mutual funds, you have to be careful that they don't have the same top ten holdings like GE.

[lukeh]

If your leg was hurting you and turning green you would get a doctor.

If you were in an accident and being sued you'd get a lawyer.

Yet if you have money you will need for retirement and "have no inclination for financial investing and don't really follow the stock market" you get advice from a bunch of guys on an internet car forum?

Use a professional. And yes, just like the doctor and lawyer they will get paid for their services. And yes, some will be better than others so maybe check with fiends to get recommendations.

[masraum]

Originally Posted by lukeh

If your leg was hurting you and turning green you would consult a bunch of nuts on a Porsche forum.

If you were in an accident and being sued you'd consult a bunch of nuts on a Porsche forum.

Yet if you have money you will need for retirement and "have no inclination for financial investing and don't really follow the stock market" you get advice from a bunch of guys on an internet car forum?

Use a professional. And yes, just like the doctor and lawyer they will get paid for their services. And yes, some will be better than others so maybe check with fiends to get recommendations.

Fixed it for you. Actually, both have been done, many, many times here. Hahahah

Of course, there are doctors, lawyers, and possibly pro-finance guys on the board.

You might want to avoid the same sort of thing on a Civic forum, or a Scion forum, but then, I'm just guessing, I've never actually been to either.

[Joeaksa]

I moved three 401K's to a fund called "River Source" after talking with my banker. She had put her retirement there and was very happy with them.

Three years in and am very happy with them. It went up pretty good at first then dropped when the market bottomed out. Is now back at its former level and still doing well.

[JavaBrewer]

Originally Posted by lukeh

If your leg was hurting you and turning green you would get a doctor.

If you were in an accident and being sued you'd get a lawyer.

Yet if you have money you will need for retirement and "have no inclination for financial investing and don't really follow the stock market" you get advice from a bunch of guys on an internet car forum?

Use a professional. And yes, just like the doctor and lawyer they will get paid for their services. And yes, some will be better than others so maybe check with fiends to get recommendations.

Actually I HAVE gotten medical advice from this forum There are many professionals that are members of the Pelican community.

As for "using a professional" I thought that by investing in a managed fund like the TRP fund (symbol TRRCX) I would be doing exactly that. I'm just asking if others here have a relevant (in my context) counterpoint to going this direction.

Thanks again.

[Joeaksa]

Originally Posted by lukeh

If your leg was hurting you and turning green you would get a doctor.

If you were in an accident and being sued you'd get a lawyer.

Yet if you have money you will need for retirement and "have no inclination for financial investing and don't really follow the stock market" you get advice from a bunch of guys on an internet car forum?

Use a professional. And yes, just like the doctor and lawyer they will get paid for their services. And yes, some will be better than others so maybe check with fiends to get recommendations.

One small point. We have many professionals here on the forum. Why NOT ask and get their opinions? The more information the better IMHO but then I am a professional in my business...

[lukeh]

Originally Posted by Joeaksa

One small point. We have many professionals here on the forum. Why NOT ask and get their opinions? The more information the better IMHO but then I am a professional in my business...

There is nothing wrong with getting opinions. My opinion the correct answer on an important question should be to see a professional. For example, look back at the original question. For a professional to give proper advice he is required to know the posters age, net worth, annual income, risk tolerance, other assets, years until retirement...and a few other things. Because nobody asked any of that stuff the answers he is getting are worthless and maybe even dangerous. Maybe I was a little too dramatic by using the doctor and lawyer scenarios to make my point but wanted to stress how important his decision is.

I didn't mean for my original answer to be sarcastic but to be serious. After all, saving for retirement is serious stuff...just as being sued and having your leg turn green is. There can be real consequences by listening to uninformed opinions and I'd hate for the original poster to make a mistake because Joe the plummer once had that mutual fund and liked it. If people give advise on important matters I feel they should list their qualifications on the matter or just keep quiet. After all, he's not asking what color to paint his house or if he should put oak or cherry cabinets in the kitchen. Me commenting on a green leg isn't helping anyone...me commenting on a legal statute isn't helping anyone...but by being a CFP I'd like to think my investment advice is relevant.