What to do with a 403b/401a?

Investing
#1

Hi!!! I am new to the community and just finished the PFC course! Such valuable info that I never knew!!! Now that I have all this info I have gone in search of the money I have laying around doing NOTHING. I found a Fidelity account that has both a 403b and 401a from a former employer. It’s in a target date index with a 0.55% expense ratio.

I am not sure what to do with this account. I know I need a lower expense ratio but do I leave it where it’s at and move to a cheaper fund or what? Super not sure. I tried going back to review the PFC course but couldn’t find what I was looking for.

Any advice is appreciated!
TIA!!!

#2

@SheBeEB It’s great that you are focused and intentional with all the money you have in your various accounts. You have a few options.

You can look at the other investment options available within the 403b and 401a retirement plans and choose from those options. Generally, employer-sponsored retirement plans have fewer investment options available, and you can find something that meets your comfort level and goals for investing.

Another option is to open an IRA. You can do it within Fidelity or choose another brokerage firm such as Vanguard or Schwab. Once you open an IRA, you can perform a direct transfer of the funds from your 403b or 401a into it. You will then have SEVERAL more investment options available to choose from.

You may need to open an IRA for each employer-sponsored retirement account you have. You can ask your brokerage firm about that.

Good luck!

#3

Thank you so much for the input, greatly appreciated!!! :smiley: