Comments on: Staying Put in Your Company’s 401(k) Plan When You Retire http://allfinancialmatters.com/2005/12/29/staying-put-in-your-companys-401k-plan-when-you-retire/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= By: Sam http://allfinancialmatters.com/2005/12/29/staying-put-in-your-companys-401k-plan-when-you-retire/comment-page-1/#comment-919 Sam Sat, 31 Dec 2005 01:01:40 +0000 http://www.allthingsfinancialblog.com/?p=258#comment-919 Does anyone know about how the Federal TSP compares in this respect? I know that the fees are so low as to be practically nil, and they have a decent - if not extensive - selection of index funds to choose from. Not sure about the other aspects mentioned in the article. Does anyone know about how the Federal TSP compares in this respect? I know that the fees are so low as to be practically nil, and they have a decent – if not extensive – selection of index funds to choose from. Not sure about the other aspects mentioned in the article.

]]> By: Nancy http://allfinancialmatters.com/2005/12/29/staying-put-in-your-companys-401k-plan-when-you-retire/comment-page-1/#comment-912 Nancy Fri, 30 Dec 2005 18:33:07 +0000 http://www.allthingsfinancialblog.com/?p=258#comment-912 The "stretch-out" provision of an IRA is a huge benefit. Many employer plans such as 401k's and 403b do not offer this. If your non-spouse inherits this employer plan, the plan will "force" the money out. Uncle Sam really benefits in this case as your heirs will pay signifcant taxes. If your employer plan offers a "gic" or "stable-value" fund as an investment option-that could be a compelling reason to stay in the plan. Those are just not offered in retail IRA accounts. www.retirementthink.com The “stretch-out” provision of an IRA is a huge benefit. Many employer plans such as 401k’s and 403b do not offer this. If your non-spouse inherits this employer plan, the plan will “force” the money out. Uncle Sam really benefits in this case as your heirs will pay signifcant taxes.
If your employer plan offers a “gic” or “stable-value” fund as an investment option-that could be a compelling reason to stay in the plan. Those are just not offered in retail IRA accounts.
http://www.retirementthink.com

]]> By: trip http://allfinancialmatters.com/2005/12/29/staying-put-in-your-companys-401k-plan-when-you-retire/comment-page-1/#comment-907 trip Fri, 30 Dec 2005 16:49:20 +0000 http://www.allthingsfinancialblog.com/?p=258#comment-907 I agree with FMF and srh. For the vast majority of 401k participants it is better to move it out of the company plan. I generally have a lot of respect for the thoughts of Mr. Opdyke, but he is off base here. I have seen a trend in the conservative PF media where they are shifting away from traditional strategies. Mr. Clements, for example, has recently (over the past year) shifted away from promoting strict indexing. It will be interesting to see how this new trend affects individual investors over the long term. I agree with FMF and srh. For the vast majority of 401k participants it is better to move it out of the company plan. I generally have a lot of respect for the thoughts of Mr. Opdyke, but he is off base here.

I have seen a trend in the conservative PF media where they are shifting away from traditional strategies. Mr. Clements, for example, has recently (over the past year) shifted away from promoting strict indexing. It will be interesting to see how this new trend affects individual investors over the long term.

]]> By: JLP http://allfinancialmatters.com/2005/12/29/staying-put-in-your-companys-401k-plan-when-you-retire/comment-page-1/#comment-906 JLP Fri, 30 Dec 2005 16:15:52 +0000 http://www.allthingsfinancialblog.com/?p=258#comment-906 SRH, Naturally, a person would want to thoroughly investigate their options before making such a decision. SRH,

Naturally, a person would want to thoroughly investigate their options before making such a decision.

]]> By: srh http://allfinancialmatters.com/2005/12/29/staying-put-in-your-companys-401k-plan-when-you-retire/comment-page-1/#comment-905 srh Fri, 30 Dec 2005 16:04:01 +0000 http://www.allthingsfinancialblog.com/?p=258#comment-905 I read this article, and think the author (Jeff Opdyke) is full of hooey. I made some comments at: <a href="http://flexiblepresentation.blogspot.com/2005/12/in-this-article-jeff-opdyke-of-wsj.html">WSJ.com - Leaving your retirement in a 401k</a> But basically, he found that in a very small number of cases, leaving your money in a 401k provided _some_ of the benefits of rolling over into an IRA. The only real benefit mentioned is possibly getting lower fees with some funds. But he failed to emphasize that you are stuck with your plan's sub-par funds to begin with... I read this article, and think the author (Jeff Opdyke) is full of hooey. I made some comments at:

WSJ.com – Leaving your retirement in a 401k

But basically, he found that in a very small number of cases, leaving your money in a 401k provided _some_ of the benefits of rolling over into an IRA. The only real benefit mentioned is possibly getting lower fees with some funds. But he failed to emphasize that you are stuck with your plan’s sub-par funds to begin with…

]]> By: FMF http://allfinancialmatters.com/2005/12/29/staying-put-in-your-companys-401k-plan-when-you-retire/comment-page-1/#comment-903 FMF Fri, 30 Dec 2005 14:55:36 +0000 http://www.allthingsfinancialblog.com/?p=258#comment-903 I've always converted to an IRA because 1) the fees have been lower (I use Vanguard) and 2) there are more investment choices. I’ve always converted to an IRA because 1) the fees have been lower (I use Vanguard) and 2) there are more investment choices.

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