What to do with my 401 K?
545529
You will be greatly penalized if you tap into that 401K now. If you can make it without tapping into it you will be much better off. You can roll it into an IRA and not be penalized. In the process of rolling it into an IRA you can arrange to have some of the money for living expenses but it will cost you.
673210
I recommend low-cost mutual funds.  Vanguard has many good ones, and Fidelity has some very low-cost index funds.  Look for tax-managed funds, or tax-exempt bond funds.  Some bond funds are exempt from taxes in a particular state as well. However, tax exempt bond funds give lower returns.  You should talk to a tax advisor to see which way is better for you.  In stock funds, index funds tend to have lower capital gains than actively managed funds, and the returns are often just as good or better.\n\nIf your stock isn't already in a retirement fund, you can't just put it all in there at once.  You're limited to $4000/year in contributions. Do a Roth IRA if you can, but there's an income limit, and the stock sale may put you over that limit.  If you don't qualify for Roth, put what you can in a traditional IRA.  Either way, inside the IRA you can buy some of the mutual funds I mentioned.\n\nIf you can transfer $4000 worth of stock directly into the IRA and then sell it, that may avoid the capital gains tax on that portion.\n\nAny single stock is a high-risk investment, because it can go up or down quickly, so you can reduce your risk a lot by selling and diversifying (into those mutual funds.)  The bad news is that you'll have to pay capital gains taxes on the sale of your stock, especially if you've had it for less than a year.\n\nYou should also talk to a tax professional about the Alternative Minimum Tax, which can hit you if you have a large capital gain like that.\n\nBy the way, real estate has been fantastic recently, but it's showing signs of slowing down.  This may not be a good time to invest heavily in real estate.
163073
S&P is good however i would go 60-65% stock and 40% bonds and cash investments so as to diversify your account while still making you a good rate of return.  When you get to around 60 you want to move more toward bonds and other save investments.  Remember as long as you diversify you will be fine so put your money into some other funds.  If you dont have a finicail planner available with your 401k plan seek out one to help.  Also www.bobbrinker.com and bankrate.com are good sites to help with investing.
761866
Before you invest the first dime of that 5k make sure you have:\n1. Contributed enough to your 401k to achieve your company's match. (if that is an option available to you)\n2. Paid off all debt (except for your mortgage if you have one)\n3. Set aside 3 months of living expenses.\nNow you are ready to go! As to tools... see the following url which has info on various investment strategies.\nSuccess and health to you! \n\nSource(s):\n http://www.investmentu.com/sitemap.html
320520
Absolutely though, you would need to check with a tax professional to determine whether the amounts deposited into your IRA are tax deferred or after-tax.  It all depends upon your income level.\n\nMax out your 401(k) contributions if at all possible. You're overall savings through the 401(k) far outweight the ultimate reduction in your "cash in hand" each pay check.
66432
good question.  401k's are excellent vehicles for preparing for retirement.  The greatest part about them is that usually your company gives you free money when you participate, called a match.  The way it usually works is that you decide how much, either dollars or a percentage of your income, you want to put in to the plan.  Then you decide which investments to pick (this can be tricky without knowing what they offer).  Ask the person offering the plan to help. Use a mix.\n\nWhatever you put into the plan is deducted from your income.  Heres an example:\n\nYour income:               $40,000\nContribution amt:   5%:    $2000 \nCompany match 50c per $:   $1000 \nup to 5%                    \n\nTotal contribution:        $3000\n\n(New taxable income:$38,000)\n\nIf you do this until normal retirement age of 60 and get a 10% return on your money over that time, you'll end up with almost $1,200,000.  \n\nSince now youre only taxed on $38,000, when you decide to retire and get your money you have to pay taxes on all the money you take out (not the whole $1.2 million unless you take it all at once).  If you take it out before your 59 1/2 you will have to pay an additional 10% penalty on whatever you take out. There are exceptions.\n\nThese are pretty much the pros and cons, but if you start now and stay consistent you'll be able to retire very comfortably.
1022786
Invest in your companies 401K plan. If they match your contribution, they can double your money right away.  Ask you HR person for details.
375
Just go to vanguard.com or any of the brokerage firms (Vanguard usually has the lowest fees), sign up for a rollover IRA account, and follow the directions they give you. It usually involves filling out a form and submitting that to whatever company is managing your old 401(k).
79238
If I were you, I'd not take a whole lot of stock in a pension.  Remember, IBM just froze theirs and they are a financially sound company.  If I were you, I'd make sure I had enough money invested to make sure I could retire well - Don't believe it.
251243
If you don't have the option of a 401(k) plan, how about investing in a roth IRA?  You can open one in your bank or online.  It's never too early to start investing for retirement.
284237
It is a good idea.  You can never make up the difference if you don't start investing until you are older (due to compounding interest).  A 401 K is dogmarked for YOU and no one can take that money.\n\nThe thing about baby boomers, that is really only affecting PENSIONS which are not the same as 401K.  Even if the market returns drop, your money will still be there.\n\nIf you feel worried, get an IRA from an independant investment firm.  Your return won't be as high and you will not get to put the money in before taxes, but this way your company cannot drain you.
630556
You definitely want to roll it over to a self-directed IRA, where you'll be able to invest in stocks, bonds, mutual funds, annuities, and yes, even CDs.  Stay away from the bank, their idea of a good return on an IRA is a 5% CD. No one under 55 should ever have CD's in their IRA, it's a waste of both your age (which can be a powerful weapon) and the IRA's tax-deferred status.  CDs are for much older people, or for money that needs to remain somewhat liquid--which is something IRA money does not.\n\nDespite Scuhbby's inane assertion that the average mutual fund does 16-30% (no, the average mutual fund loses money), mutual funds are absolutely the way to go.  Pick a broadly diversifed mix of assets classes, cover all your bases, and remember to rebalance every year.  A financial advisor might be able to help you with this, but if you have the tools, talent, and time to do it yourself, go for it.  And oh yeah, the discipline, which is the most important.\n\nMake sure you hit all the asset classes, such as large-, mid- and small-cap stocks, international stocks, investment grade and hi-yield debt, foreign debt, commodities, real estate, and precious metals.  Come up with a mix you're comfortable with, and sit back.  A properly allocated diversified portfolio will average 8-12% return per year, on average, and you'll be able to take advantage of the IRA's tax-deferred status.\n\nMOST IMPORTANT, if you qualify income-level wise, IMMEDIATELY look into converting your IRA (once you've rolled over the 401k) to a ROTH IRA.  Thus, not only will your preserve your tax-exempt status year-to-year, you'll also ensure all future earnings will be 100% TAX-FREE.  Even a normal IRA/401k requires you to pay taxes when you take distributions.  Converting could have some current year tax consequences, so consult a financial advisor for your specifics, but in nearly every case I have found it to be worth it.\n\nHope this helps!\n--J.
634009
I would suggest that you talk with someone in your bank to begin with. They do have experts in the field.\n\nNow, I have my 401K with Fidelity and like them fine. They are huge and offer many different investment options. They also can give you pretty good advice if you tell them what kind of investments you are interested in (long-term, very stable, higher risk but higher pay-off, gold - not a bad investment these days). \n\nI also have some stock through Scot Trade. It costs only $7 per transaction no matter how many shares you are buying or selling.\n\nNo matter what you do, understand that people can and do both make and lose money in stock markets and real estate. \n\nAnd as strange as it may seem, some of us are able to make over 50% return on our investments per year. Right now, today, I am out of the market and waiting to go back in. *grin*
320509
Read a good book (or two) on retirement investing.\n\n(In the long run it will teach you a lot & save you tons of money)..............
4641
yup, unless you're 59 and a half, then you will have to pay the full tax on the money taken out of your 401k plan, which means if you are working right now, you are in your income earning years, hence your tax bracket should be higher, maybe even to the next level depending on how much you take out of your 401k, since that would be counted as regular income.  and the IRS (uncle sam calls it a penalty, but I like to call it a tip) would also be needing that tip from you, a 10% tip for every buck you want to take out.  so, if you take 20,000 out, that would be more like 14,400 if your bracket is in the 28% range minus $2000 for that tip i would telling you about, which leaves you 12,400 for taking out 20,000.  not really worth it huh
725978
You can cash it in with a substantial penalty.\nYou can let it sit there and hopefully grow.\nYou can roll it over into a IRA\nYou can roll it over into another 401K\nThe part of it that YOU contributed through you\npay is always yours, The part that your employer matched (if they did) is "vested' over a period of time, so if you were there less than a year\nthe part THEY contributed they probably take back.\nif you were there 5 years, it's probably all yours also.
1154873
Do you live in a community property state? That makes a huge difference. I believe 401Ks are safe, but you ought to check in your state.