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rolling my 401k - what to expect

MikeMMikeM
in Off-Topic
I have an appointment at a local Schwab branch to ask some questions and roll over my 401k to an IRA. I have a naive question that I will find the answer to then, but thought I'd ask you people having experience before hand.

Will I be able to just transfer into the same funds I have today from my TRP 401k (assuming Scwhab carries the fund). Can I transfer in-kind even if the funds are closed to new investors; GPGOX, ODVYX, PRWCX which will be closed soon for examples? Or, will I have to sell and re-buy the funds as a new investor?

What other questions or surprises should I be aware of?

Comments

  • jlev
    My recollection from other discussions is that it is idiosyncratic to the institution. You might get in touch with the people running closed funds. Grandeur peak is especially helpful in terms of letting people who already hold their funds to transfer.
  • [Deleted User]
    The user and all related content has been deleted.
  • JohnChisum
    It is very possible that Schwab will have funds that are close or equal to what you had at TRP with lower fees to boot. That would be something to consider.
  • heezsafe
    @MikeM see Bloomberg article posted by Ted this a.m.
  • MikeMMikeM
    Thanks for the comments. I'm looking forward to my meeting with the local Schwab advisor.

    I've heard about some brokerages offering money incentives to roll over to them. I believe Scottrade does this. Not enough in the long run to sway me though. I actually plan to keep 10% of the 401k in place with TRP. I don't have a good reason for that. Just a long time attachment I guess.

    heezsafe, I read Ted's article - thanks. My rollover will still be self directed. I don't plan to invest in any advisors speculative advice. But I do know many people who have left the company I worked for that are enticed by financial advisors getting them to roll their 401k's over to them. In fact I think more than 1/2 do this. They aren't comfortable handling large sums of money themselves.

    Thanks again everyone for the comments.
  • heezsafe
    Ah, well, that gives me a little relief, hearing that you've heard some of the things others have done that will probably end up being unwise. I'd have to go to a second hand, and maybe to a third, to count the number of people in the last couple of years who, only 3-5 yrs in retirement, have asked for my opinion about something they've done to "ensure" income when they're 80. It has "shocked the senses." Private party, and they start talking to me about $250K in an annuity wrapper, etc., and "so what do think of that"....uncomfortable. Though I try---I really try--- it's not long before they lose their happy party hat.

    Before you meet with the advisor, if it's possible, you might test his/her mettle and thoroughness by tossing out a couple of alternatives "you've been tossing around" and ask him/her if they could develop some options for each alternative. See what is brought to the table, into the mix. If you start out with something you've thought completely thru and have concluded is absolutely the best way to go for you, then they may simply put together a collection of things to meet that strategy, while saying "after considering other optional approaches, after exhaustive analytical cranking" and you'll have no way of knowing if they did anything more or not. And by keeping it a bit more open, making it more like a brain-storming session, you'll possibly get a better sense of who you're dealing with (e.g. if they start to bring out all sorts of exotic "sophisticated" vehicles to include as "a little spice" to "enhance" the path........ well........then you know.......:) )
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