[QUOTE=BK001;1607395]I have some of our retirement 401k and 403b rollovers in Fidelity, Vanguard and Oppenheimer. To make things easier, I would like to consolidate and put all of our funds into one company.

We were told that even in the unlikely event that one of these firms went belly up we would not be hurt since we are not invested in these companies but in the underlying stocks, bonds and funds.

But I’d like other opinions, from a risk point of view, is there any reason why I should not do this?

Signed:

If i were you i would roll the 401k and 403b into an ira account through a major brokerage firm. That way you can manage your own investments. You are currently paying management fees to the 401 and 403 plans by consolidating to an ira accout you would only pay one management fee.

[QUOTE=Fredman;1607538]In my opinion, you should definitely transfer your 401K and 403B money into an IRA. If you transfer it to Vanguard, you would not pay any management fee at all, except for the expense ratio of their funds. When I retired from the Federal Government, one of the first things I did was to transfer my retirement account into an IRA. I didn't want Congress to have any access to that money.

You might want to check into doing direct rollovers from those accounts into IRAs — like Fredman and retiredguy123 said here.

I prefer IRAs to leaving the money in the 401(k) or 403(b) because IRAs give more direct control.

If you do this, be sure you do it absolutely perfectly so that you do not trigger any tax consequences.

Regarding your original question:
I am wondering if you decide to consolidate if you will be able to keep all of your current funds. Individual stocks would roll over directly. But I do not know if mutual funds titled specifically to the firm could roll over directly to a different firm. For example, could Fidelity Contrafund roll over to Vanguard as is? (I do not know the answer to that but it might be no. Maybe somebody here knows.)

I don't think you can roll over funds or even stocks from a 401K to an IRA. You would need to cash them out and transfer the money. But, since it is tax deferred money, there would be no taxes as long as you did a direct transfer. Once the money is in your IRA. you can then purchase comparable investments within the IRA. If using Vanguard, they will be glad to help you to make the direct transfer. But, it is well worth the effort to get your money into an IRA where you have total control.

I would use several brokers. If someone compromises your account I think it would be better that you did not have all your eggs in one basket.

Thank you all for such good advice. I guess I wasn't clear but the 403B and the 401K were rollovers into IRAs when we left our respective employers. To transfer from one broker to another we have two choices: Sell and transfer into cash or do what is called "investments in kind". That was not the issue but appreciate the comments.

That sounds like a valid argument for leaving things the way they are. Thank you and all the other responders.

fidelity actually has no fee index funds now. It won't cost anything to make an appt. with Fidelity. The nice thing about them is they have an office in LSL. I think they may give you money for transferring to them. I have most of my accounts with them and it is easier at tax time

Take it all an put it on NOTHING but RED! One Spin, Exciting. You could always stay in our basement if it doesn't work out. :1rotfl:

Hope you got some good ideas here, great people, great advice.

LOL - Best offer I've had all day! :mademyday:

:1rotfl: There's no basement at the Alamo :1rotfl: sorry :1rotfl: not

You are so sharp FW and absolutely right -- The Big "N" is selling snow in a NY winter so if we follow his investment strategy and Black comes out we are to be "Homeless in The Villages".

:1rotfl:

Thanks for nuttin' N.

Re: Vanguard, t.rowe and fidelity
 

I too have atts at Vanguard, T. Rowe and Fidelity. At big plus for Fidelity is the fact that they have a location in Lake Sumter so if you want to talk to a HUMAN drop something off or pick something up it is there. If, you wish to put your holdings at T. Rowe, Vanguard without selling them you can have Fidelity hold them for you. Only caution I am aware or is that Fidelity will not
honor the reduced management fees associated with Vanguard
Admiral shares. Also, if in a company sponsored IRA, 401K etc you many find that as my wife did that there are company plans where you pay lower management fees than the same exact fund traded as a different code.
RE: Vanguard or T. Rowe
Service is mon-fri 9-5:00. Fidelity-you will find someone to answer the phone anytime including weekends.