Rollover into 403(b) vs IRA

I am 39 and I have $42,000 in the 401(k) with my previous employer. I am married with a six-month old baby. I am starting in a new job making around $187,000 a year. My new employer offers a 403(b) plan with matching contributions after one year employment. I will contribute the $15,000 maximum per year to the plan. I don't have an IRA right now. I am a doctor and I expert my earnigs to keep growing. Should I rollover all or part of my 401(k) into the new 403(b)? Since I am not well versed in investment alternatives, should I move it all or a good portion of the $42,000 to an IRA under a well-recommended manager? Are there other alternatives? Thanks for any advice.

Reply to
columbus46
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I myself would not to roll into a new plan. I like to have control over my money. As a result, I would roll over into a self-directed IRA. That gives you full choice over what to do, but I would limit those choices to a very sound base of low cost tax efficient index funds, likely in the form of exchange traced funds.

I'd find a good broker to help you with this. Find the richest few people that you know, and ask them who they have as a broker. Don't get one from a cold call or someone relative's friend. You don't want to be the stereotypical doctor that earns a lot and gets screwed badly in all of his/her investments.

-john-

Reply to
John A. Weeks III

I'm with you here, good advice. One question - how interested is any broker going to be in this account? The 'right' place may be the one sector not well represented by his 401(k), so the Rollover IRA may be placed in one or two ETFs, and generate a total $20 commission, and maybe a commission every year or so as rebalancing. JOE

Reply to
joetaxpayer

I would suggest that you roll that into a rollover IRA. I just did this myself using Fidelity. It's a relatively easy process. They have lots of investment choices. You can get advice on the web or in person. You can do this with many other brokerages such as Schwab, etc.

Reply to
PeterL

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