401K Rollover

[buckeyebri]

I am having some fun with Wells Fargo and Fidelity trying to roll my money to my new 401k Plan. Wells says they need all of these forms and certain things from Fidelity and Fidelity says just need the check made out to them with me as the FBO. Can it really by this difficult to do?

Its my money and I want it now.......

 

[TexasBuck]

Fidelity is right in that all they owe you is a check payable to Wells Fargo, for benefit of your name. (Possibly with an account #) There should just be one simple rollover form to fill out for Wells Fargo. Most investment companies want your money and make it pretty easy for you to give it to them. If there's more to it than this, you might want to think about keeping your money at Fidelity. I've got an account there. Lot's of investment options, reasonable fees, clear statements. There's worse options.

 

[buckeyebri]

Fidelity is right in that all they owe you is a check payable to Wells Fargo, for benefit of your name. (Possibly with an account #) There should just be one simple rollover form to fill out for Wells Fargo. Most investment companies want your money and make it pretty easy for you to give it to them. If there's more to it than this, you might want to think about keeping your money at Fidelity. I've got an account there. Lot's of investment options, reasonable fees, clear statements. There's worse options.

Sorry if my post was confusing, I am moving from Wells Fargo to Fidelity. I really hate Wells Fargo\Wachovia, so I am glad to make the move. The idiocy of the paperwork requests by Wells Fargo is killing me. I told Wells Fargo they needed to remember whose money it is today.

 

[TexasBuck]

Gotcha, sorry about the mix up. That is BS what Wells is trying to do. I've done 3-4 direct rollovers and fortunately, never been hassled by the outgoing place. I think the worst I've been asked to do is provide the request for a check in writing. You'll be happy with Fidelity, once you get passed this.

 

[ScriptOhio]

It is probably easier to teach a dog how to roll over than a bank.

 

[BuckBackHome]

I bet it is because you are their favorite client and they refuse to let you go. I would ask for a toaster or something. Gotta love me some banks, especially these monster ones.

 

[buckeyebri]

You know it, these monster banks\orgs love their clients.....I'm not a number to them.....

 

[OneBuckeye]

I have a small 401k (4.5 years working) and am starting a new job. A large part (35%) of my 401k is company stock. The stock recently dropped about 37%. This has happened before in the last two years and it came back plus some after the drop before. Should I let it ride for 2 years or so and wait for it to come back before I roll it over? Obviously when I do I cannot keep my employee stock and will have to invest in whatever offerings my new employer has. I am 99% sure the right answer is to let ride then roll it over. I'm just looking for additional input.

 

[dav713]

I have a small 401k (4.5 years working) and am starting a new job. A large part (35%) of my 401k is company stock. The stock recently dropped about 37%. This has happened before in the last two years and it came back plus some after the drop before. Should I let it ride for 2 years or so and wait for it to come back before I roll it over? Obviously when I do I cannot keep my employee stock and will have to invest in whatever offerings my new employer has. I am 99% sure the right answer is to let ride then roll it over. I'm just looking for additional input.

If you had never invested in your old company, would you consider investing 35% into stock of your old company today? If the answer is yes, let it ride. If the answer is no, cut your losses.

 

[BuckStocksHere]

I'm not giving financial advice I'm just throwing that out there as a disclaimer....

The question not asked more often than not is can you make more money elsewhere vs your old company stock. Doesn't so much matter if your stock is down 70% or 30% etc, it's moving forward that counts.

Put another way, if I told you your old company stock would double from where it is now and xyz and abc and 123 would triple, where would you put your money?

No guarantees in life but don't get caught up in how much it is down, think about what I can invest in moving forward that will make me the most money.

Now then, let's talk about a 35% stake in one company.....

 

[OneBuckeye]

I'm not giving financial advice I'm just throwing that out there as a disclaimer....

The question not asked more often than not is can you make more money elsewhere vs your old company stock. Doesn't so much matter if your stock is down 70% or 30% etc, it's moving forward that counts.

Put another way, if I told you your old company stock would double from where it is now and xyz and abc and 123 would triple, where would you put your money?

No guarantees in life but don't get caught up in how much it is down, think about what I can invest in moving forward that will make me the most money.

Now then, let's talk about a 35% stake in one company.....

I have 35% in ESOP because of company matching and rules about when I can move money out of the company ESOP. Either way I could have moved most of it out, but I just didn't. When I roll over into my new companies 401k i'm not sure what funds would have the reward potential of my current ESOP.

If i had extra cash to invest I would invest in my current company. The real question is what will give me a better return, my ESOP or my new companies 401k offerings. I'm not sure how to go about that.

 

[PlanetFrnd]

One - not giving advice either, but if you think there is potential upside, probably better to let it ride rather than lock in a loss (unless you want a tax shield - make sure its an appropriate realized loss with an accountant, HR BLock, tax advisor, etc. first though).

Also, investing in your current employer is great and all, but make sure you consider your own exposure. Not sure what dollars we're talking about here or percent of your own nest egg, but its just something to consider FWIW.

 

[muffler dragon]

Also, investing in your current employer is great and all, but make sure you consider your own exposure. Not sure what dollars we're talking about here or percent of your own nest egg, but its just something to consider FWIW.

Bus:

Is this one of the reasons why the financial advisors I talk with rarely recommend that you buy the stock of the company you work for? Not related at all? Or is it just one of many reasons?

 

[BuckStocksHere]

I have 35% in ESOP because of company matching and rules about when I can move money out of the company ESOP. Either way I could have moved most of it out, but I just didn't. When I roll over into my new companies 401k i'm not sure what funds would have the reward potential of my current ESOP.

If i had extra cash to invest I would invest in my current company. The real question is what will give me a better return, my ESOP or my new companies 401k offerings. I'm not sure how to go about that.

Risk and reward. Your singular company stock may appreciate considerably higher than a basket of mutual funds, but may also Enron. I personally like to take the car over the cliff disaster off the table. I have no problems with investing a small percentage in your own company, but salary plus your retirement is too much skin in the game for me. not knowing of course what lies outside that arena.

As for how to figure it out - buckeye planet of course. Or find a good financial planner!

 

[PlanetFrnd]

Bus:

Is this one of the reasons why the financial advisors I talk with rarely recommend that you buy the stock of the company you work for? Not related at all? Or is it just one of many reasons?

Likely one of a few, but its the biggest one I can think of. Ever see Smartest Guys in the Room about Enron? If you did, you'll remember all of those Enron employees who trusted the management team which told them to put everything into Enron stock... and then were wiped out. Talk to ex-Lehman employees...

Those are extreme examples, and its good to participate in the upside if you truly believe in your company, but you already rely on your job for salary and healthcare, so if something goes bad at a macro level at work, you're already in trouble... why worsen the situation with being all-in on the stock?

There are other such reasons that related to illiquidity if you can be considered an "insider," but those are typically just for top-brass types.