Originally posted by jakeknight:
A few points, I would roll your 401k over to a self directed IRA or and existing IRA if you are happy with the flexibility that exists in the existing IRA, no reason to pay the tax nut upfront to go to a Roth, basically if you roll to an IRA at age 30 you have 40 years of untaxed growth before the gov't makes begin the RMD process. I get a little nervous when people start to take over other people I got my money out the door of the old company as soon as I could. The mechanics of a roll are pretty simple, you can have your 401k check made out to you and then deposit it within 30 days into an IRA (and avoid the tax man) Or you can have the transfer check made out to the fund you are moving it to (for the benefit of [your name]), you probably need to validate the process through your current 401k admin. Relative to fund allocation, what you suggest will work although you might want to take a smaller position in US large cap and a larger position in European large cap as they have embraced a quantitative easing type program much like what the Fed did in the US coming out of the recession. In either case stay in Index and or ETF instruments to capture a broader exposure to the various sectors you want to be in, especially if you are not prone to want to manage your portfolio.
