Investing 401k Funds Into Stocks

When investing 401k funds into stocks, you'll have to do it through equity-based mutual funds that are available in your 401k plan. The only exception to investing your 401k into individual stocks is when your employer provides their company stock as an option in your 401k plan. However, if you roll your 401k into an IRA you will have the option to invest in individual stocks. To do this you will need to roll your 401k into an IRA with a broker. Here's how you do this: 1. Choose a broker. You can go online to find one, or use one in your town that you trust. 2. Open a brokerage account. Get an account number. 3. Call your 401k plan to do a DIRECT transfer of funds into the brokerage account. Do not do an indirect transfer. The 401k plan should mail you a check made out to the new trustee for your benefit. The check should have your account number at the broker on it. Mail this check to the new trustee. 4. Buy individual stocks. You can do this after the funds arrive. Keep in mind that individual stocks can add a lot of volatility to your portfolio. Most of the results of investing come from proper asset allocation, not from picking the right stock. But if your mind is set on picking individual stocks, this is how you get the account set up for your IRA from your 401k. To download the free 401(k) Rollover 10-Point Checklist go to http://retirementplanningmadeeasy.com/401krollover And be sure to check out more videos / articles and retirement information at http://retirementplanningmadeeasy.com/

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