Expert: Allen - 3/18/2009

Question
I've changed my job 2 yrs ago and have not changed my 401k with the previous employer.  I do not expect to retire for at least 18-20 yrs and have heard that I should withdrawl the 401k then rollover into another retirement savings account since no other contributions will be made to the old account.  As of Sept 2008 I've already lot $4000.00  Should I stop the bleeding and withdrawl and roll over? and Is it always wise to withdrawl when you leave an employer and put into another retirement account?

Answer
The answer to your question is that you should invest your money where you expect you will be able to make the most on your investments. If your former employer's plan has good choices, you should leave the money there. If you feel you can do better with an IRA account at a financial instution or with your new employer's plan (assuming they offer one), then you should move the money,