Hi, I've recently left my job and need to choose what to do with my 401k. It seems like the consensus is to move it to a rollover IRA? I currently have a maxed Roth IRA, if that makes any difference.

the consensus is definitely not to move it into a rollover IRA. 1. Do you have a new job with a 401k? Will you? 2. Does your current job have good low fee investment options in your 401k? 3. Does your previous employers 401k charge a fee to operate it? What about for terminated employees

😅 ok. I currently do not have a new job, I hopefully will but definitely not within 60 days. I guess those are questions I ask the employer or fidelity(where the 401k is) ?

correct

My 401k is invested in fidelity freedom blend 2060

kk not a bad fee for using a TDF which normally has higher fees

Yeah I should probably change it if I'm changing things here anyways

but yeah if they don’t charge you to keep it there, i would keep it with the previous employer until you can move it to a new 401k assuming the new 401k also has low fee investment options

Ok ill find out, thanks

i can’t help pick investments unless we do a full financial plan together

Hi @worried-dog-39593! You asked about investing—great question! If you’re investing for less than 10 years, we recommend avoiding stocks and focusing on safer options like bonds, CDs, or other fixed-income investments. If you have a longer time horizon (10+ years), we generally prefer $VTI. While it may look like a single stock, it actually represents the entire U.S. stock market, offering built-in diversification that works well for most families. If you are using Fidelity for Retirement Accounts, you should use $FZROX Resources that you can start looking into that help explain this investment strategy are The Simple Path To Wealth and the ChooseFI Podcast. If you need even more resources, check out https://frum.finance/resources/ Another option is $VT, which is Vanguard’s Total World Fund. In contrast to $VTI, which is invested in the United States only, $VT is invested across the whole world. We prefer the US-only version, $VTI, and you can read about why here.

boom robot

Thanks! one day I shall get everything together and make a plan with you. Slowly getting there 🙂

iyh!

Are there any benefit of keeping in 401k over IRA?

Yes!! If you ever want to do a backdoor roth contribution or a roth conversion ladder in the future, having traditional IRA funds will invoke the pro-rata rule making it very complicated and potentially expensive. There are 3 ways to deal with that, but it’s better to avoid the whole headache