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Roll over IRA
In early Nov. I received a letter from Vanguard, it says I am eligible to transfer some of my 401k to an IRA account. I thought about it, the pros and cons, and decided to do it yesterday. Here are my rationale:
1) Ideally I like to keep all my retirement in one place, but one problem is I am not very familar with the new funds avaiable in the new 401k plan. On the other hand, I have been with Vanguard for a while and I know some of the funds are really good (good enough to make me sleep well in the night).
When I say Vanguard is good, I am not only talking about the fees, the performance, etc; but also their brand: it is one of the most respected mutual fund companies in the world. I rememeber a few years ago NY AG Spizer investigated many mutual funds, and I did not heard Vanguard name there (come back to the sleep well factor…).
2) Diversify: this will also allow me to diversify my 401k (IRA); and I can compare the performance of two baskets as time goes on.