Help w/ 401k rollover (advisers and funds) (IRA, broker, puts)

[jy_2007]

Hi folks-
I'm going to roll my 401k over into an IRA (as well as move some cash into a non-retirement investment account) and need advice on 2 things:

1) Should I use an adviser? This is a lot more money than i've ever invested, but I'm thinking "no". I mean, why pay someone to do probably the exact same thing I'm going to do? - put most of it into broad-market index ETFs and funds, and the rest into higher-risk mid/small cap and international funds. There are even targeted retirement funds that adjust their allocation as time goes on. Does anyone have experience using an adviser? Do they really help you if you already know the basics?

2) Regarding funds - i see a lot of advice on forums like this "Call up vanguard/t.rowe/fidelity/etc. and place your money in one of their funds." I'm a little confused by this. All of the funds they offer on their sites are available through my online broker. Is there any difference between just buying the fund myself, and opening an account with them? Are they selling something additional?

thx

[LongArm]

1) Don't use an advisor if you can do it yourself. Just using one puts you at a disadvantage because of the fees. Now, if you really DON'T know the basics, and/or if you're likely to make poor decisions, then you might be better off with an advisor.

2) The only difference between buying, for example, a Vanguard fund from your broker or buying it through Vanguard itself is that your broker will likely charge a transaction fee, whereas Vanguard won't. That and buying/selling will likely be a little more convenient going through your broker.

[eskercurve]

I agree with Longarm. If you can research stocks or funds that you like, and pick one, then good for you, you don't need a broker.

But if you've never invested before outside your 401(k), then it probably would help to have an advisor.