2013 Money Resolution #1: Find New Homes for My Orphaned 401k Accounts - Part 2

In last week's episode I confessed to you all that I had been letting my 401k money run away from me.  So I vowed to find it, gather it up, and put it where I could keep a closer eye on it.  That last post was all about how I planned to go about finding my orphaned accounts and getting ready to roll the money into a consolidated investment.

Rolling over a 401k usually means removing your money from one financial institution and depositing it in another. That means you have to make a decision about who you're going to have holding your money in the future. When it comes to banks, brokers, large financial institutions, etc., you have A LOT of choices.

It can be overwhelming.

The good news is that there are some things that can help you narrow down the decision, like...

• Choose a company with a broad selection of investment options including mutual funds (look for a wide variety of index funds!) as well as individual stocks and bonds. 
• Opt for flexibility. You want as many investing options as possible, so an institution that allows you to create a self-directed rollover account gives you the most room for growth. You don't have to actively trade in the account now. But if think you'd like to have the option to explore a variety of investments in the future, a self-directed fund is right for you.
• Compare the fees you'll be charged for giving them the privilege of holding your money.  Some charge higher fees than others. There may be an annual maintenance fee some places but not at others. Also check the fees on the investments offered. If there are plenty of what's called "no-load" mutual funds (aka, funds without sales fees), you're in good shape.
• Finally, go with your gut.  If you already know and like your bank, broker or investing house, stick with them. If you're wary of the full court press sales pitch you get when you call a high profile company, feel free to move on.  Brand names have cache, but the last few years have shown us there can be problems lurking even in the highest-profile places.  Don't put your money with any company you don't like, trust and understand. And avoid any company that doesn't answer your questions or do everything in its power to help you be the most informed financial whiz you can possibly be. 

Fidelity, Vanguard, Charles Schwab are big players in the IRA custodian arena.  But credit unions, banks  and discount brokerages also have IRA options that you could also consider.

Once you pick one, call them up and open an account. Up next, I'm going to pick out what investments I'm going to select for my rollover cash.