Roth 401K and pretax 401K rollover question. (bonds, IRAs, brokerage)

[organic_donna]

I am rolling over a Roth 401K as well as my pretax 401K from my employer to Vanguard. I am allowed to roll over "in kind" shares. I first need to do the Roth transfer and then they will take the pretax funds afterwards. I have a variety of stock ETF's, a small amount in bonds with the remainder in cash. I was going to put the majority of the cash in the Roth and the equities in the pretax IRA. I will be changing these investments later. Does it make any financial difference whether I put the cash in the Roth? Or should I put the ETF's in the Roth?
In the end, both accounts will have a mix of stocks, bonds and cash.

[IDtheftV]

Originally Posted by organic_donna

I am rolling over a Roth 401K as well as my pretax 401K from my employer ....

Why not just cash-out and once the funds are rolled-over, buy new stuff?

Most employer 401k plans are loaded with high-cost funds with little selection. Once you get the money into a brokerage account you can buy anything or leave your powder dry for a while.

I have 5 rollover IRAs and just moved cash every time. Later, I just invested the money as I saw fit.

[organic_donna]

This is a brokerage account. I was able to invest in anything I wanted to. It is all ETF's. I am going to put the cash in the Roth and the ETF's in the pretax.

[Lowexpectations]

Originally Posted by organic_donna

This is a brokerage account. I was able to invest in anything I wanted to. It is all ETF's. I am going to put the cash in the Roth and the ETF's in the pretax.

Vanguard can hold the equities/etf and most mutual funds. Most 401k rollovers are in cash with maybe the possibility of inkind for company stock

[organic_donna]

Originally Posted by Lowexpectations

Vanguard can hold the equities/etf and most mutual funds. Most 401k rollovers are in cash with maybe the possibility of inkind for company stock

This is different. Some employers allow 50% to be invested in a Brokerage account. It is different from a "regular" employer 401K rollover. I can rollover all my investments "in kind".