Friday, June 23, 2006

Fidelity Rollover IRA part 3

Well, I've finally completed the rollover of my previous 403b retirement account with Fidelity. I had previously posted on this process which began about 1 mos ago. Overall, a pretty smooth process, most of the delay occurred from me getting the necessary signatures from my previous employer. Again, while I prefer Vanguard over Fidelity, I have decided to keep my retirement funds with Fidelity since my current employer retirement plan is also with them.

A few comments about the whole process:

-Fidelity had great service.... very accessible, polite people that actually were helpful.

-As part of the rollover process, they are supposed to provide some guidance with investing options... I found this not as useful. I think it depends on your level of knowledge with mutual funds. For a beginner, it is great...I consider myself intermediate so not that useful. It seems that they mostly promote their Freedom Funds (i.e. fund of funds) which seems reasonable especially since my overall balance is not so large.... however, don't expect much in terms of guidance for individual funds to makeup an overall appropriate asset allocation.


-Entire process is done electronically. Recommend this so as to avoid any possible complications with taxes as you have 60 days from withdrawal of funds from a 403b to rollover your funds into an IRA before paying penalties to the IRS.

-Of note, while all the Fidelity mutual funds I owned rolled-over without hiccups, I had a PIMCO bond fund that did NOT rollover and went into a money market fund. I could repurchase this with my rollover; however, the minimum purchase is $2500 which is more than I wanted to allocate to a bond fund at this time. Given the current environment of rising interest rates, I think it's OK to leave my money in a money market fund for now (yield was 4.75%).....but kinda sucks to not have the same access to my previous Pimco fund.
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