I started a new job which has a pension. Well I need to do something with my 401k from my previous job. Whats the best way to invest it? IRA? Roll it into my current pension?

I would roll it over into another market driven fund that qualifies.  Don't leave any money anywhere you do not have 100% complete control over it.  It's yours you earned it now keep it.  I would not roll it into another company's pension fund.  Way too much risk IMHO with mergers, buyouts, etc.

most people don't roll into a new employer.

 

they won't let you just keep all your funds in the old plan?  if you liked those funds just keep it there.   If they are forcing you to transfer or cash out and roll into an IRA the only real "danger" in that is then you are your own money manager.   And you could be tempted to sell that Vanguard fund that was good to you..  and start buying some individual stocks.. (like maybe you buy Smith n Wesson stock) and then you wind up losing 50% of your retirement money because 90% of people suck at buying individual stocks (I am one of those that suck)..   So if they make you cash it out and you roll into IRA just please please please only buy FUNDS not individual stocks.

Send the money to me.  PM me for my account info to be transfer into. 

If you are looking for some guidance I believe the proprietor and admin of this site is a financial planner.

I always recommend transfer out of former employer plan. Do a direct rollover, otherwise the plan may withhold for taxes. Although I do keep a small amount with a former employer stock fund, mainly for exposure to big defense market. Transferring out give you more control and flexibility.

 

However, I generally prefer low cost (low expense ratio)funds like Vanguard, which has a huge number of low cost index funds.

If you feel comfortable with individual stocks, chose a low cost brokerage that offers good online tools.

Personally, I am pretty lazy, so I mostly rely on Vanguard index funds, and a few stocks,which I tend to hold forever.

Kind of in line with what's been said - roll into IRA.  

 

As far as investments go, if you don't invest for a living, core of your portfolio should be a diversified fund or family of funds.  Typically the lower the exp ratio the better - although in the long run, your total real return matters more than how much you paid. Meaning that if you're getting an annualized return of 5% and paying 1% for it for a net of 4%, it's better than getting 3% and only paying 10bps for it.  So use morningstar to look at performance and ranking of different funds.  

 

As someone else said, don't think that you can outsmart the market, the vast majority of retail investors are TERRIBLE at picking individual names. 

 

I'd be glad to answer any general questions you may have.

Roll into an IRA but there's no rush. 401K's are insured by a fidelity bond and funded into a trust.

 

If your former company is a larger company, they may have mutual funds with better expense ratios than you can obtain on your own via an IRA. This may be a reason to leave it at your old employer especially if the 401k record keeper is Fidelity. Watch the expense ratios. Some of these funds can be real bastards charging high fees.

Thanx guys. It a prudential 401k. I have til 8/4 to do something. The letter says I can take a lump sum, rollover to an ira, or leave it where it is. I want to put it where its gonna do the most for me so it looks like ira is the way to go. Most of everything yall said was spanish so could you recommend me an ira to use? I know NOTHING about this sorry. 

It's time to get involved with your retirement.  We cannot make that choice for you, only you can.  What we can do is recommend a company we feel is an industry leader in its field. Vanguard is that company.  Call them up and talk to them. Your age, amount to transfer, and fund growth desires all affect your choice. Good Luck.

 

By the way, from me, stay out of  IRAs from local banks.

I agree with T Bill. Vanguard is the most retail friendly of all the fund companies I've had dealings with. You can go to their website, www.vanguard.com, select "investing" at the top of the page, then select "401K and 403b rollovers". Lots of good info even if you choose to go elsewhere.

Yup thats what I just did. I will be calling them monday. Thanx yall.