401k rollover

[Narrator02]

I'll be rolling my 401k plan into a traditional IRA this week. I'm using T Rowe Price who has mutual funds and EFT's. I've been reading the EFT's are preferred. Agreed?
Also, I can use the self direct plan or let them manage it. Their fees are very low.and I don't actively watch the market. Should I let them manage my money?
I'm retiring at the end of this month with a pension and my 401k

[Briangumble]

Why not convert it into a Roth IRA? I have a Roth 401k and it's invested into 4 index funds and ETFs, and I think one is T Rowe Price but I can't remember

[GeneralSerpant]

Why not convert it into a Roth IRA? I have a Roth 401k and it's invested into 4 index funds and ETFs, and I think one is T Rowe Price but I can't remember

The only difference is it's taxed before you withdraw it. It doesn't make a difference concerning ETFs vs mfs, nor is it inherently more beneficial concerning investment performance.

[GeneralSerpant]

I'll be rolling my 401k plan into a traditional IRA this week. I'm using T Rowe Price who has mutual funds and EFT's. I've been reading the EFT's are preferred. Agreed?
Also, I can use the self direct plan or let them manage it. Their fees are very low.and I don't actively watch the market. Should I let them manage my money?
I'm retiring at the end of this month with a pension and my 401k

There's just a lot less uncertainty among the stocks than between them. You can probably get higher returns more often with an actively managed account, and probably won't be risking as much as if you attempted to do that yourself.

Indexing is more attractive because of expectations, though some will obviously do better than others.

[pUniCepts]

Mutual funds generally have higher fees and are actively managed. I'm sure some mutual funds outperform the S&P500, but it's difficult. I think they're mostly still popular because that's the only choice in 401k's (at least the ones I've had). I'd rather have my 401k in SPY, VOO, VTI, or similar ETF.

That being said, if you're more comfortable having them manage your money I doubt it'll make a huge difference either way.

Congrats on the retirement. Still a ways off for me, I think. Maybe never lol, or I may just say **** it one day and see what happens. I don't have a pension, unfortunately, so I don't have that security.

Why not convert it into a Roth IRA? I have a Roth 401k and it's invested into 4 index funds and ETFs, and I think one is T Rowe Price but I can't remember

Depending on his tax bracket, between state and fed tax he'd be losing 30%ish from the conversion. Maybe come out ahead in the long run, but for me I'd rather leave it in a traditional and pay tax as I withdraw. Maybe convert some in a year I'm in a lower tax bracket.