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Rolling current 401k to IRAForum overview » Solo 401k information, news, updates, & links » Rolling current 401k to IRA 
 
 jh88718
Posted 2007-10-10 11:29:02 I am young and still trying to figure out my investment strategy; however, my biggest concern is the limited amount of investment vehicles that my company offers in their 401K. We use Fidelity Investmensts but we are only allowed to select from their freedom funds and low risk low return funds. Does it make sense to open up an IRA so I have more options to diversify my retirement portfolio? I am young (27 years old) and I can afford a little risk at my current level so I have been tracking some BRIC funds(Brazil, Russia, India, and China) and I would like to get into some of these. Are the fees higher to switch my funds from my current 401K to an IRA? Does this make sense while I am still employed at my company? Any options that I am missing to allow more control and diversification? Please help me! Thanks in advance. Sincerely, Justin
brent
Posted 2007-10-12 11:12:55 The 401k is one of the best structures available; it's too bad you feel your company's particular plan is not up to snuff. Even with the issues of your company's poor investment options, the 401k due to size of deposits and possibly matching funds is usually a very good investment even with average to poor selections. I believe in most cases funding a 401k truly has advantages over funding an IRA. On opening an IRA and funding it you should check to see if your IRA can attain a tax advantage due to your income and possible 401k investments. Your company 401k should provide a listing of a "fiduciary" that has the responsibilities to direct the company selection; possibly you should contact them about your concerns. Each 401k plan is different (moving an actively investing 401k plan investment into an IRA might be prohibited depending on your companies plan). Again ask the company listed fiduciary, they should know. I hope this helps, Good luck and happy investing!
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