Funds for a rollover IRA : LUSENET : Bill Parish : One Thread

I'm considering changing jobs, and I'm looking at funds for a rollover IRA for my current 401K. What is your opinion of the INVESCO Select Income bond fund, and also the INVESCO Health Sciences fund? Thanks.

-- Tom Nadeau (, April 27, 2001


Hi Tom. Two decisions. The first is where to have your assets. I would recommend a good discount broker like Waterhouse Securities. The second decision on the actual funds should be preceded by as asset allocation decision, i.e. what percent in stocks versus bonds. If you are changing jobs I would recommend converting your 401K to a money market to secure the assets, transferring to a discount broker and then making an investment decision down the road. Take your time, no hurry, especially with the strong downward pressure on the market. Good to think long-term on the buying decision rather than rush.

-- Bill Parish (, April 27, 2001.

Right now I've pretty much settle on a mix of 31% bond funds, 27% value funds, and 42% tech funds. Tech seems to be positioned for a rise, since it was so undervalued. But value and bond have both been "haven" positions during the recent stock downturn, so I've "hedged" by including a good mix there, too. I like the Maxim family in my current 401K; it seems to have nice returns and less downdrafts.

Anyway, the worst part is when the company increased the 401K vesting period from 5 years to 7. If I leave any time in the next 1.5 years, I get nothing from the company matches. First 2.99 years have 0% vesting.

-- Tom Nadeau (, May 02, 2001.

Can I set up a Roth IRA as a rollover destination when changing jobs? Or must I set up a regular rollover IRA and convert to a Roth afterwards? I expect my salary to exceed deductible levels for regular IRA contributions, so I believe a Roth will be the better choice. I want to convert ASAP to minimize the tax burden of the conversion.

-- Tom Nadeau (, May 04, 2001.

I've selected a nice mix of Invesco Bond Fund, Constellation and Charter Tech Funds, Dreyfus Emerging Leaders and Dreyfus Aggressive Value, and one or two others. The Dreyfus are both closed to new entrants; I'm getting in via Great West's IRA bundle. They have 21% and 23% return over a 10-year period. Load is about 1% or so. I'm keeping the same moderate mix of 30% bonds, 40% value, 30% tech, roughly. Looks to be 15% annual return after subtracting the loads.

Now I just need to get the funds in there; I'm still waiting for the company to move the cash over. Then I'll convert to Roth while the numbers are still small. I'll have my new job's 401K via Fidelity, plus the Roth IRA with Great-West. Better not to put all the eggs in one basket.

-- Tom Nadeau (, May 21, 2001.

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