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Sunday, March 30, 2008
403B Rollover
Is there a wrong or right time to roll over a 403B from an old job? I am rolling it over to Vanguard. However, with the markets the way it is, is now a wrong time roll over?
5 comments:
Anonymous
said...
That's a good question and I'm looking forward to what others have to say, but my first thought is that it probably isn't any more bad a time than any other time would be.
Roll it over to Vanguard. Whatever funds your 403b is in right now are probably not as low cost as a Vanguard Index fund of some sort would be. You lose money every day it languishes in that old account.
While it's great to get the matching funds that come from an employer, realize the fund choices you are given for your account are less than ideal. Therefore, the day you leave that company is the day you start investigating other options.
I did my rollover to Vanguard and it was quite simple and done over the Internet plus a little paperwork to sign before it's all done. Just make sure you clarify to Vanguard and your employer that it's a rollover so the check doesn't come to you. If by accident it does, immediately send it to Vanguard. I believe you have 60 days before the government considers it a disbursement of retirement money.
Look at Vanguard's Index 500 fund. Very low cost and a good performer over the long haul.
And don't worry if the market is up or down. That won't matter in the long term.
5 comments:
That's a good question and I'm looking forward to what others have to say, but my first thought is that it probably isn't any more bad a time than any other time would be.
I wish I could answer for you, but I can't. I know a little bit about it...just enough to make me dangerous, but not nearly enough to pass on to you.
Good luck though!
Ignore the markets, they always bounce back- if you're a long term investor. Do not look at the short term
Go ahead and roll it over. With the market at such a low, it'll bounce back in several months and you'll see the money grow a lot.
I'm considering the same thing; my $1000 in my 403B is just kind of sitting there doing nothing...and worth less than $980.
Roll it over to Vanguard. Whatever funds your 403b is in right now are probably not as low cost as a Vanguard Index fund of some sort would be. You lose money every day it languishes in that old account.
While it's great to get the matching funds that come from an employer, realize the fund choices you are given for your account are less than ideal. Therefore, the day you leave that company is the day you start investigating other options.
I did my rollover to Vanguard and it was quite simple and done over the Internet plus a little paperwork to sign before it's all done. Just make sure you clarify to Vanguard and your employer that it's a rollover so the check doesn't come to you. If by accident it does, immediately send it to Vanguard. I believe you have 60 days before the government considers it a disbursement of retirement money.
Look at Vanguard's Index 500 fund. Very low cost and a good performer over the long haul.
And don't worry if the market is up or down. That won't matter in the long term.
You're doing great. Keep up the good work.
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