401k not growing - anyone else?
05-10-2016, 04:57 PM
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401k not growing - anyone else?
I'm looking at my portfolio and have heard that many companies push funds that provide better commission to the person managing the company's 401k (and along with that come higher fees). Would it be possible to withdraw my balance and invest it into something like a low risk index fund and hold it over the long term?
05-11-2016, 07:47 AM
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Interest rates are trough the floor and you wonder why your investments aren't growing?
You can roll them into an IRA but (and I am far from a professional on this topic) I believe there has to be some sort of applicable life changing event, like leaving your company, for that to prove tax and penalty free. Even IRAs right now are not all that great, but it depends on the invested risk. Either way it's a long term investment with a pathetic interest rate at the moment.
You can pull money and be taxed and penalized out the ass only to throw that into a high yield, high risk investment. But again that is high risk
Hell even CDs right now are only promising 1.10-1.25% APY.
Your probably better off with that 401k for now to be totally honest. Any investment matching by your company will exponentially out weigh interest.
You can roll them into an IRA but (and I am far from a professional on this topic) I believe there has to be some sort of applicable life changing event, like leaving your company, for that to prove tax and penalty free. Even IRAs right now are not all that great, but it depends on the invested risk. Either way it's a long term investment with a pathetic interest rate at the moment.
You can pull money and be taxed and penalized out the ass only to throw that into a high yield, high risk investment. But again that is high risk
Hell even CDs right now are only promising 1.10-1.25% APY.
Your probably better off with that 401k for now to be totally honest. Any investment matching by your company will exponentially out weigh interest.
