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Moving my 401(K)

March 27th, 2009 at 08:46 pm

Boy, I sure do seem to talk a lot about my 401(K), don't I? There's sort of a reason why. You see, I'm in the process of doing something kind of provocative. Controversial. Maybe even dangerous....

I'm going move most of my retirement money to Scottrade, and will likely focus on stocks and bonds....

Ok, take a deep breath people. Try not faint. For one thing, I don't plan to trade with most of this money. Instead, I DO plan to buy-and-hold AND diversify!

Also, please consider that when you buy stocks and bonds, there is NO expense ratios to speak of. Just a trading fee, which with of increments of $10k at a time, amounts to something like 0.07% equivalent front load in a mutual fund....

Of course, the main problem here is the assumption that I am actually competent enough to micro-manage my own portfolio. Ok well, I am not so sure about that, but the interest is definitely there. Enough to steer me towards this direction for now.

Why do I feel like I'm trying to justify to the missus why I shouldn't be locked out for buying something I shouldn't have? Big Grin "But honey! If this doesn't work out, we can always go back to index funds! And the kids'll love it! I think!"

I just checked my old 401(K) brokerage, and have a balance of $0. GOOD RIDDANCE! However, the balance has yet to appear on my new Scottrade rollover account. Hopefully that will happen soon!

But yeah, this is the extent of my exciting life right now. I would jest about needing a new hobby here, but you know what? Screw it, I like this stuff!

2 Responses to “Moving my 401(K)”

  1. disneysteve Says:

    I see nothing wrong with this plan at all. There are a few reasons why most people are better off with mutual funds. Most of us invest small amounts on a regular basis - weekly or bi-weekly or monthly. Doing that with stocks makes the commissions really add up fast. Most folks don't have enough money in their account to properly diversify with individual stocks and bonds. Finally, lots of folks don't have the knowledge, time or inclination to choose their own investments.

    If you are starting with a substantial sum going in at once time, you nearly eliminate the impact of the commissions. If you have enough money to buy individual bonds, that's good, too.

    I say good luck and keep us informed about how you are making out.

  2. Ima saver Says:

    wish you well!!

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