I have 2 old 401K accounts with Vanguard, roughly 58K between them. They were not setup properly. Can I move the money from Vanguard to Fidelity without issues? How do I maximize returns?

Hey Money Minder,

I need some help figuring out how to wrangle my old 401K accounts and get my money game on point. So, I’m raking in about 140K a year, and both me and my job are tossing in 9% towards retirement. I’ve got 2 old 401K accounts hanging out with Vanguard, totaling about 58K. But hey, I set those up back when I was clueless about this stuff, so they’re a bit of a mess.

Now, I’m at a new gig that’s all about Fidelity, and I’ve got 25K stashed there. Can I make the jump from Vanguard to Fidelity without any drama? And once the money’s over there, do I start fresh with a new account or just dump it into the current one? Plus, where should I park that cash to score some awesome returns?

For the record, I’ve got a solid 6+ months of emergency cash on hand, plus another 20K chillin’ in a savings account. Just had a little one too, so I wanna give her a head start. No credit card debt to worry about, just the ol’ mortgage and car payment.

Thanks a ton, Up-and-Coming Saver!

Response from THE MONEY MINDER:

Hello There,

Hello,

Congratulations on your new baby! I’m sorry to hear about the confusion with your 401K accounts, but it’s great that you’re looking to streamline everything and optimize your retirement savings.

Firstly, merging your old Vanguard accounts into your current Fidelity account shouldn’t be problematic. You can initiate a rollover from Vanguard to Fidelity, and Fidelity can assist you with the process, ensuring a smooth transfer. Once the funds are in your Fidelity account, you don’t need to set up a new account, just deposit the merged amount into your existing account.

As for investment choices, given your current financial stability with emergency funds and no credit card debt, you can consider a diversified portfolio based on your risk tolerance and retirement goals. Fidelity offers a range of investment options, including mutual funds and ETFs. You may want to speak with a financial advisor at Fidelity to tailor an investment strategy that aligns with your long-term objectives and risk tolerance.

Considering your desire to set up your child’s future, you can explore options like a college savings plan or other investment accounts specifically designed for children. However, make sure your retirement savings remain a priority before allocating additional funds to your child’s future.

In conclusion, consolidating your 401K accounts and optimizing your investment strategy with Fidelity is a practical step towards managing your money effectively. Keep track of your financial goals, revisit your investment strategy periodically, and make adjustments as needed. All the best from THE MONEY MINDER.