Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Looking to roll over my 401k from previous employer to an IRA. Have just been in index funds and would like to stay that way. I’ve always thought Vanguard had lowest expense ratio on these but Fidelity looks quite good as well. Thoughts or suggestions on rolling over a 401k, this is a first for me? Anything I should know or consider?
Low fees are good but in the end it is how much money you make so look at 3, 5 and 10 year performances and morning starts ratings.
I think the Fidelity site will be easier to use and Vanguard, Schwab and Fidelity are all trying to be very low cost so look at Schwab also.
They all will have educational material you should read.
you have to watch fund turnover too. index funds are not all the same in how they work . in a retirement account it does not matter but in a taxable account it can .
even index funds do their own things . some sell call options or loan out securities to enhance things ,others do not own the entire index and swap out minor holdings .
it changes year to year as far as tax inefficiencies . at one time schwab was one of the worst , not sure how they stand now .
these are all s&p 500 index funds yet the tax inefficiencies are all over the map
Last edited by mathjak107; 04-29-2018 at 03:26 AM..
I guess another question is would it be better if I just roll over my old 401k to my new one? What’s the pros/cons of going to the new 401k vs opening an IRA for these rollover funds.
the dividends will be the same , they all reflect the s&p 500 dividends .gains are very very close with the only difference being the fees in a non taxable account.
dividend wise the s&p 500 is what it is across the board for all .
the only differences will be the fees and tax inefficiencies in a taxable account .
so ivv is an extreme case since they loan securities and spy is the purest case since they are a unit investment trust .
over `15 years they differed by 9.68 to 9.65% with ivv getting a fraction more .
if we compare schwab's to spy , schwab came in at 9.69 and spy 9.65%. so unless the fund is in the purist form like spy they will be for all purposes the same gain wise and dividend wise.
but because their actions can have different tax implications if in a taxable account end results can very quite a bit .
Last edited by mathjak107; 04-29-2018 at 07:35 AM..
you have to watch fund turnover too. index funds are not all the same in how they work . in a retirement account it does not matter but in a taxable account it can .
even index funds do their own things . some sell call options or loan out securities to enhance things ,others do not own the entire index and swap out minor holdings .
it changes year to year as far as tax inefficiencies . at one time schwab was one of the worst , not sure how they stand now .
these are all s&p 500 index funds yet the tax inefficiencies are all over the map
Your chart is old. The net ER of Schwabs SWPPX is .03% not the .09% listed in that chart.
Of course they won't. And neither will the net gains
They all hold different stocks at differing levels with more or greater focus on varying sectors
and make changes to these through the year.
no they don't , if s&p index funds did that then they would not be s&p index funds ..... they would just be large cap funds or a special version of an unweighted index s&p fund . . all s&p 500 funds get similar returns and dividends or else they can't follow the index. there should only be some tracking error which is very slight and all of the funds can see it . s&p index funds follow very strict criteria as far as weighting and holdings and they will be within a fraction of a point of each other , some may hold a bit of cash for redemptions or sell calls but basically there is no differences to speak of in the holdings that determine the index results . . . .
you do see the words s&p 500 INDEX FUND i hope on all of them . .
can you find us an s&p index fund that differs by more than a fraction of a point pre expenses ?
Last edited by mathjak107; 04-29-2018 at 11:25 AM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
