Two negatives:DW has three 401k's from previous jobs, all in 6 figures. ERs are very decent and there are no maintenance fees, two at Fidelity, one at Vanguard.
We're 56 and the last 401k meets the rule of 55, but we don't expect to need the money at all before 59 1/2, which will happen in 3 years.
Was looking into consolidating things into an IRA at Fidelity mostly because much better flexibility into choice of ETFs and Treasuries. With the exception of cash needs over the next 2-3 (held in matching maturity treasuries and CDs), all our fixed income is in tax advantaged accounts. I feel much more comfortable handling individual Treasuries for fixed income, than I am with Bond funds. Treasuries are not available in the 401k plans, but they are at Fidelity. I don't intend to have fixed income with more than 7 years maturities to match our projected expenses and keep everything else in index tracking ETFs.
Questions:
1. Is there any big downside of consolidating into IRA? I looked at available ETF funds at Fidelity and the ER is on par with what's available in the 401k plans. The differences are minuscule from the ERs in the 401k's. The only big downside is better protection against creditors seizing the funds in a default, but that is mostly theoretical and one can cover against that with proper umbrella insurance.
2. Somewhat related, in another thread, someone mentioned they would not buy IVV or ITOT, because of BlackRock ownership and instead use VOO. Don't want to start a flame war, but is that more of a personal moral issue, or is there any substantial objective risk in doing that? Asking, since most of my ETFs are IVV and ITOT, just don't want to miss anything big.
Appreciate wisdom from this forum. Thank you.
An IRA makes the backdoor Roth process infeasible
Certain states, California in particular, have weaker protections for IRAs than 401ks.
People confuse BlackRock and Blackstone.
Statistics: Posted by exodusNH — Tue Jul 16, 2024 3:10 pm