Investing/Retirement question

[Renegade]

I have been sitting on an old 401K for a company I no longer work for. I left that money untouched for the past 8 years. It has almost doubled in value during that time.

I am really considering taking that money and transferring it to a Robinhood Gold IRA. They are doing a 3% match through the end of April if you sign up for the Gold (must keep Gold for 1 year $5 per month fee) I am well outside of the 5 year agreement for the IRA they require before penalty for early withdraw. I am figuring 7-9 years before Retirement.

I know very little about Robinhood. My current 401K is with Voya, and the fees are less than 1.5% annual. I would have to rollover to a traditional IRA as 98% of my 401K was before tax.

Is Robinhood any good for just setting up an IRA and not "investing" with it?

[scho63]

Originally Posted by Renegade

It says 3% match on all rollover if you sign up for their gold level. 1% match if you use their basic level.

I am just curious if Robinhood is legit. It sounds sketchy at best

Very legit but very limited.
Not a full service investment firm.

[IowaHawkeyeChief]

Originally Posted by Renegade

It says 3% match on all rollover if you sign up for their gold level. 1% match if you use their basic level.

I am just curious if Robinhood is legit. It sounds sketchy at best

That usually excludes qualified funds... Check the fine print.

[Rain Man]

I'm no expert on Robinhood, but I'll echo the comments that you can just move the money without worrying about timing. Rolling over an IRA from a past employer can be done at any time without penalty. Just be sure that you roll it over into the same type of account (i.e., Roth or Traditional).

Then invest it into some kind of equities, whether it's an ETF, target date fund, or individual stocks. If it's in a particular type of investment now, you can sometimes transfer the holdings without liquidating them into cash, and that's convenient. It kind of depends on who you're moving it from/to.

[ReynardMuldrake]

I would ask a professional. You could end up with a sizable tax liability depending on the type of IRA and how transfer is handled. Good luck.

[Oxford]

Originally Posted by Renegade

I have been sitting on an old 401K for a company I no longer work for. I left that money untouched for the past 8 years. It has almost doubled in value during that time.

I am really considering taking that money and transferring it to a Robinhood Gold IRA. They are doing a 3% match through the end of April if you sign up for the Gold (must keep Gold for 1 year $5 per month fee) I am well outside of the 5 year agreement for the IRA they require before penalty for early withdraw. I am figuring 7-9 years before Retirement.

I know very little about Robinhood. My current 401K is with Voya, and the fees are less than 1.5% annual. I would have to rollover to a traditional IRA as 98% of my 401K was before tax.

Is Robinhood any good for just setting up an IRA and not "investing" with it?

At the old company, what is the real yearly return on that investment? How is that obtained (Annuity/Company stock/Mutual funds)? If its in the old company stock, if its in the old company stock your are betting on their profitability for your investment returns.

What do they charge you to manage that money or is it free? You CAN roll this over to a Roth ira but you will pay taxes on it in the year you do so. A tax advisor can help you through that. Remember you are required to take withdrawals from your IRA at 72 so you dont have to do that at 65

So many options sp its good to start thinking about it now, but understand that a CFP has a responsibility to his client on advice and disclosures whereas a "broker" is under a different standard

Its your money and that is power

[493rd]

I’m a CFP professional…ping me I’ll answer your questions if you want.

[Buehler445]

Originally Posted by Rain Man

I'm no expert on Robinhood, but I'll echo the comments that you can just move the money without worrying about timing. Rolling over an IRA from a past employer can be done at any time without penalty. Just be sure that you roll it over into the same type of account (i.e., Roth or Traditional).

Then invest it into some kind of equities, whether it's an ETF, target date fund, or individual stocks. If it's in a particular type of investment now, you can sometimes transfer the holdings without liquidating them into cash, and that's convenient. It kind of depends on who you're moving it from/to.

I think the “leave in period” is they’ll clawback the 3% match.

I don’t know how it works but apparently Robinhood gets some sort benefit for throughput or assets under management or something. That’s how they can “afford” the match.

[TrebMaxx]

No advice but I just checked my retirement countdown clock and saw 7 months and 18 days. Brought a slight smirk to my face.

[Buehler445]

Originally Posted by Renegade

It says 3% match on all rollover if you sign up for their gold level. 1% match if you use their basic level.

I am just curious if Robinhood is legit. It sounds sketchy at best

Robinhood caught some shit during the GameStop thing because they wouldn’t let the mentors guys sell when it rolled over.

As far as I know they’re 0 fee and if you’re buying and holding ETFs you won’t run into any of the trading stuff. And even if you do if you’re not doing any highly volatile meme stocks I wouldn’t worry about it.

It’s 100% self directed though. You’re not getting any advice.

[kccrow]

I think its best use could be for casual traders and for investing cash. It's got a 5% APY on cash investments. Even better savings accounts only get 4.0-4.3%. If you're just holding some funds to do some stock trading on your own, I think it's a nice little thing. Not sure that much of the rest of it is overly advantageous.

[Ming the Merciless]

Charles Schwab just bought TdAmeritrade and the software called ThinkOrSwim

I personally love it and would recommend checking it out...been using ToS for years. A+

(if you use think or swim, it's self directed)

so you can open a schwab account and get think or swim free now)

[BigRedChief]

I turned 65 and the social security office sent me a list of 3 profit sharing plans that I have money in that I’ve not done anything with in over a decade.
I had no idea. Totally forgot about them. Not chump change. $25K/$9K/$700

Only found the contact so far for the $700 one.

[DCTwister]

As others have stated,
1) You can roll 100% of a 401K to an IRA with zero penalty. I’ve done it multiple times.
2) Get competent advice from a legit investment advisor that works with investors of assets your size. This Robinhood deal sounds like bullshit to me. Most of my money is in Fidelity but managed by Goldman Sachs. Personally my wife and I both work in finance and are smart but we use a good financial advisor that has set a good plan for us. You should do the same.

[Hog's Gone Fishin]

NVDA back on track Rainman , up $30 but I expect a huge drop now that I post this

Currently 819.50

[scho63]

Originally Posted by Ming the Merciless

Charles Schwab just bought TdAmeritrade and the software called ThinkOrSwim

I personally love it and would recommend checking it out...been using ToS for years. A+

(if you use think or swim, it's self directed)

so you can open a schwab account and get think or swim free now)

I used to have Scottrade and LOVED IT until TD Ameritrade bought it..Now they are getting gobbled up.

Had a bad experience with Schwab but many people love them.