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00tec
12-31-2012, 17:32
So I have a bit of money sitting in a former employer's 401k account and wondering what I should do with it. I looked into rolling it over to my current employer's plan, but I haven't decided (obviously). I can roll it over to a retirement account at USAA.
A bit of background- I'm 27, married, and use loans out of the account on larger purchases.

Any suggestions?
Musashi
12-31-2012, 17:36
Vanguard has always been good to us.
bogie
12-31-2012, 17:44
Do you have a Roth IRA? If not, one thing to consider is to withdraw this years limit from your 401k, pay the tax and penalty, and work on maxing out the Roth every year from now on.
bogie
12-31-2012, 17:45
A bit convoluted but here's how your max contribution to a Roth is calculated.

http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Amount-of-Roth-IRA-Contributions-That-You-Can-Make-for-2012
Madusa
12-31-2012, 17:45
Think inflation, 4 more years of printing money. Good luck.[Flower]
bogie
12-31-2012, 17:50
Think inflation, 4 more years of printing money. Good luck.[Flower]

There would be far fewer millionaires in this country if they had worried about inflation when investing for retirement.
birddog
12-31-2012, 18:00
+1 for a Roth IRA. Pay the taxes now and not later.
GlockDog47
12-31-2012, 18:00
Roll it over....
DavieD55
12-31-2012, 18:04
You should buy a bunch of ar-15s [LOL]
BushMasterBoy
12-31-2012, 18:15
A safe, full of silver dollars, or ingots.
asmo
12-31-2012, 18:18
Roll it over (to something - Roth, traditional, whatever) and actively manage it. I'm a fan of Fidelity but if you have access to USAA then go with it.
GlockDog47
12-31-2012, 18:39
Fidelity always has been good to me aswell.....
Inconel710
12-31-2012, 18:43
I rolled my TSP to a traditional IRA at TD Ameritrade. No cost to trade inside the IRA on the ETFs I use.
00tec
12-31-2012, 18:52
Do IRAs not allow loans? I was under the impression they weren't allowed.
ChadAmberg
12-31-2012, 19:02
I used to work at Vanguard about 15 years ago, and they're one of the top rated mutual funds because they follow the index and don't f' around with your money by doing trades. Because of that, they tend to do better than people who think they know better.

That said, I have all my old 401k money rolled over into T Rowe Price and USAA funds. The most important thing is: I can control and move things around, and I'm not stuck to the generally craptacular set of choices that most companies 401k plans lock you in to.

Definitely roll it over into an IRA. Just do a little research, you'll be fine with the choice of funds at USAA, TRP, Vanguard, Fidelity, etc.
spqrzilla
12-31-2012, 19:17
Don't borrow money out of an IRA / 401K. Just don't.
00tec
12-31-2012, 19:28
I'm not talking withdrawals, where I get smacked with taxes and such. I figure buying used cars that way is better than credit. (Used to work in credit- hate it)
ChunkyMonkey
12-31-2012, 19:42
Seriously, ask for recommendation of a good financial advisor instead. I personally rolled mine over to self directed IRA. Whatever you decide to do, keep it pretax.
bogie
12-31-2012, 20:22
Almost everything I've read lately says to never borrow from your retirement account. The math usually works out that in the long run, you're better off getting a conventional loan instead of borrowing from yourself. You end up shortchanging yourself.
DSB OUTDOORS
12-31-2012, 20:29
Seriously, ask for recommendation of a good financial adviser instead. I personally rolled mine over to self directed IRA. Whatever you decide to do, keep it pretax.
^^^^ Just roll it over. You'll be better off in the long run.