For all ex-Intel folks, if you contributed to an Intel 401k account while working and left the company.. be sure to roll your Intel 401k to a personal IRA (rollover or Roth) account. Having a personal IRA will allow more investing fund options and possible dividend payout. I was pleasantly surprised to start getting dividends (either cash out or auto reinvest). I don’t recall seeing this detail in separation paperwork.. so hope it’s helpful.
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@zn spot on.
Fidelity doesn't charge anything for a Rollover IRA and it could be that the funds in the 401k carry lower expenses, but that is no way to pick a fund.
The lawsuit protection is not nothing, and might be a reason to keep a portion in the 401k, just as a matter of risk management.
Brokerage Link is reasonably open, with the exception of inverse and leveraged funds. I like to use those as a hedge, but that account can be used for the portion of a portfolio which doesn't need to be hedged.
The 401k fund choices are probably ok for someone under 40, but I'd avoid any passive index fund unless you really want to be that invested in MegaCap Tech stocks.
Check out how the Nifty 50 performed in the 1970s, because that is what is coming for the MegaCap Tech stocks, which appear to have already started the next cyclical downturn. The period of excess global investment appears to be over, and a lot of that was placed in passive funds, and most of that went into megacap tech.
INTC+FNGD to the moon! :)
Protection from some lawsuits is correct. This doesn't include spouses or the IRS! I rolled mine out as investment options were mostly shi!! after Intel got ride of S&P index fund. They're at least three occasions during my employ when Intel moved investments from one management company to another at the bottom of the market with no matching invested funds. Every time that happened I took a huge loss. Any of those funds that don't have regular regular ticker symbols are investing partially in Intel stock. It's a con job.
This is why Intel is a failure... employees who think they are smart, but in fact, they aren't. Keeping your money at Fidelity 401K has many advantages over an IRA... this includes 1) protection from litigation and liability. If you get sued, your 401K funds are protected from claims... unlike an IRA. 2) If you are happy with the Intel investment options, esp the Fidelity funds available, they the annual fees are cheaper than what you would pay if you bought them through an IRA; 3) While an IRA may have some additional investing alternatives... but Brokeragelink prob provides 98% of what a typical investor would need. If one is compelled to roll some funds into an IRA, I would recommend doing a 401K conversion to a ROTH IRA to avoid future taxes (depending on your current and estimated future tax brackets).
@td+1 You can do better than MM funds, just push out the duration to 6M or even a year or so, and still not have to worry too much about stagflation eventually driving up yields. TBUX or THOPX will still return when the MM funds go back to low yield.
Even some MM funds will go out to several months duration, but if the slowing global economy turns into a potentially deep recession then all MM funds will be driven down by Fed rate cuts.
Also, Bessent has made it clear that they want to see lower LT rates, because that really hits consumers. I think they will allow a recession and maybe a bad one, for that reason and to help the effort to lower the out of control Federal Govt deficit spending, before it leads to a crises.
The risk of going beyond about a year in duration on some short term bond fund is that the corporate bonds could decline in a bad enough recession, so see how that fund performed since 2007, because 2008 and 2020 were about as bad as it can get for that type of fund.
The one place to avoid, imo, is megacap techs, and all passive index funds, because that lazy investment thesis will work the same in reverse, but much faster. Even dividend reinvestment (from all other stocks) ends up going into megacap tech, because that is how index funds work.
Nothing is certain but this looks a lot like Spring 2000 to me. Everyone had fun till they all had none.
Heck just for holding cash in your IRA your account (SPAXX) it paying 4.74%, Zero risk. This is way better than you can get by holding cash in the Intel 401K in a government fund. You have the freedom to invest in anything. You Intel index funds are limited in there investment options and the costs are high. That fact there there is a uniform vote down of this subject shows that there are downvoting robots or HR out there.
All in on MSTR, MSTY baby
@dk So you’re converting your Intel 401K into a Fidelity plan and using that to invest in ETFs rather than the singular basket of equities and bonds the target funds have or the limited low-cost funds they have available?
If you are looking to manage your asset allocation in low cost index funds, a Fidelity IRA provides options with lower expense ratios than that of the Intel 401k funds, and more low cost sub-segment options (they even have zero expense funds for the most basic options).
However, you do need to endure some out-of-market risk so it could end up being a "wash" cost-wise.
Get it out of the market asap.
Fidelity funds like FXAIX pay dividends so this isn’t a reason to switch out to IRA