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TRP or Vanguard for 401k rollover?
sting57  05-12-2008, 9:52 PM | Post #2517254 |  6 Replies
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Didn't get much response on Mutual Fund board so I'll give Basics a shot...

I changed jobs about a year ago and have a 401k with my old employer (approx. $120k in assets). I'll have access to a new 401(k) in about a month at my new firm but the downside is that the funds in the new plan are essentially all large-cap oriented. Thinking of rolling a portion of the 401k funds into the new 401(k) and a portion into an IRA that I can direct so I can pull in some mid and small caps, as well as a couple of specific funds that I like (i.e. FAIRX, maybe OAKBX and/or a couple of sectors). 

I presently have a few Vanguard and TRP funds in a taxable account. I realize Fidelity is another obvious option and I've seen positive things about them on the boards, but I haven't invested in any of their funds so my experience with TRP and VG has me leaning towards one or the other. I believe both TRP and VG allow the purchase and inclusion of other non-family funds (like FAIRX), and presume Fidelity does as well. 

I realize there's no 'right' answer on this, but any feedback, opinions, pros/cons  on TRP, Vanguard or other possible options are welcome. Thanks...    Tom

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Re: TRP or Vanguard for 401k rollover? meyerr 05-13-2008, 7:30 AM | Post #2517313
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Think about the funds you'd like to invest in such as FAIRX, etc and see which of the three brokerages  you've named have the biggest selection of them NTF - no transaction fee in their brokerage accounts.

Roberta 

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Re: TRP or Vanguard for 401k rollover? pkcrafter 05-13-2008, 8:59 AM | Post #2517346
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I agree with Roberta, but you can take it one step further. You can go to each website and find the list of other fund families supported. Then you can check each individual fund to see if it has a transaction fee.

 
Paul 

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Re: TRP or Vanguard for 401k rollover? georgek 05-14-2008, 2:07 AM | Post #2517647
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why would u roll over half of ur old 401k into ur new employer's 401k and not roll all into a self directed roll over account? U can leave your funds invested as they are, move them over and then u are for life free to choose how to invest that amount.
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Re: TRP or Vanguard for 401k rollover? rebe945 05-14-2008, 3:22 AM | Post #2517651
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If you would like to buy  non Vanguard funds then a rollover to Vanguard  Brokerage is what your looking at.  I have both a regular Vanguard account and a brokerage account. I own Fairx thru vanguard Brokerage. It cost me $20, aS A vOYAGER MEMBER. THAT IS YOU MUST HAVE 100K IN VANGUARD FUNDS.. Otherwise it cost a little more . Rich
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Re: TRP or Vanguard for 401k rollover? rpike 05-14-2008, 2:46 PM | Post #2517804
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I believe the fund families are similar in that if you want to trade in non-family funds, then you will have to open a brokerage account there to do so. The fees for such an account will depend on the size of your holdings with that fund family and the number of trades. The fees to buy and sell particular funds will depend on the relationship the brokerage has with that fund family (i.e. whether they pay "shelving fees" to the brokerage).

You can also open a brokerage account with a discount brokerage not associated with a fund family such as Scottrade, Schwab, Wells Fargo, etc. and trade in the funds offered through that brokerage.

With the broker as an additional middleman to feed, this may end up costing more than buying directly from the fund family whose fund you want to buy, but may be more convenient if you will do many trades between fund families and/or want fewer statements to manage.

Another Rick 

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Re: TRP or Vanguard for 401k rollover? sting57 05-14-2008, 6:41 PM | Post #2517875
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Thanks to all for your advice. Since I have some time to investigate my options, I think I really need to determine in advance which funds I want to invest in, and for those outside the VG or TRP families see if/how they're available.    T

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