Forget all of that crap. Take the money out (eat the tax hit and the early withdrawal). Take 10%-15%, buy some silver and gold bullion (take physical possession, not some crappy “paper gold”). Bury it in the backyard if it makes you feel better. (Bob-the-goat’s Mayo Jars advice above is on the right track!)

Take the rest, and put it in the Bank of Sealy. (or Certa, or whatever you happen to have…)

We’re experiencing a huge deflationary crush at the moment, and cash is king (or will be). Rumors of “bank holidays” make it so that cash-in-hand is king, as you may not be able to get anything out of a bank. The gold/silver is a hedge against what TPTB are trying to do (i.e., massive inflation to “paper over” the US debt).

@everyone in the US (including BRK): Take a couple of days and educate yourselves about WTF is really going on in this country’s economy.

Some good links:
http://market-ticker.denninger.net/
http://www.zerohedge.com/
http://www.calculatedriskblog.com/
http://globaleconomicanalysis.blogspot.com/

Read. Learn. Get angry (this part optional, but highly recommended).

As an aside: For anyone leaving money in an “index fund” at the moment, you’re risking a 60-ish% loss to try to capture a 10-ish% gain. Is that really a smart idea?

Also: Remember that “financial advisors” give you the advice that is going to make THEM the most money, not what is best for YOU.

/end Dooooooooom!

On the bright side, that circuit set looks awesome!

To Err is Human
To Get Paid For It is Divine

; – )

Naturally, the third one was the one my ex-wife got in the divorce.

If your new employer has a ROTH 401K (they can exist) option of any kind, by all means grab it. Otherwise a rollover into a self managed IRA. Be sure to start your own ROTH if you qualify for it.

Index funds are fine. Vanguard very competent and the cheapest I know of…and fees matter BIG time over the years.

Outside of index funds, and particularly with a ROTH…at yor age…40, right?…..I HIGHLY recommend dividend growth reinvestment. Not just dividend reinvestment…everyone does that and they should……but dividend GROWTH reinvestment.

Even after the cataclysm, there are companies that still can pay an excelllent dividend and still grow it EVERY year… as they have, in some cases, for 30 or more years.

They will continue to do so. One example would be WRE. There are many others. The stock price will wax and wane, but the dividend will only rise; and of course when the price is down, you’ll be getting more bang for your reinvestment buck.

Over 20 or 25 years a carefully selected basket of stocks like that will snowball beautifully, and will be throwing off substantial income by the time you are 65. Tax free income if it grew in a ROTH.

Good Luck, Daniel!

Being in the business prevents me from going into specifics, but you’ve outlined some keenly specific needs/wants. I think enough so that it narrows your choices to a select few. Plus there are keen questions that need to be answered to round out those needs. A professional from either will be able to outline the benefits and drawbacks of each.

And remember, if its on the internetz it gotz to be tru.

Your Roth IRA gives you more control over your money. You can pick which index fund(s) you buy, thus keeping your expense ratio low. With a 401k, you’re limited to the company plan, and the company plan change at any minute.

So go with control.

The other benefit?

Tax-free withdrawals. What if you’re in a higher tax bracket during retirement? If everything is in your 401k, then you’re paying higher taxes. If some is in a Roth IRA, then that portion is tax-free.

Go with the Roth!

I’m assuming that this is a mutual agreement you came to with the other party. Again, I don’t mean to pry, but I do want to make sure that A) I’m right about it being protected, and B) you didn’t get the wool pulled over your eyes or something.

If you go move some to an IRA, I’d talk to a professional about your situation and choosing a Roth versus a Traditional. I have a Roth because my taxes are low now and will likely be higher when I retire. The IRA route is more hands-on, but if you just pick an index fund or 2 and plunk your cash in them for the long haul, it should be pretty low maintenance. Just make sure to login once in a while to check balances and you’ll be set.