Quote:
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.