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Can I rollover my 403(b) to a low-cost index fund?

I have an employer sponsored 403(b) retirement account that needs to be moved since I no longer work at the company that provided this account. I am considering opening either a mutual fund IRA or a low-cost index fund. I've already meet with a financial advisor who recommends mutual funds, but I have been reading good things about low-cost index funds. What do you think is the better option? Can I roll my money over to a low-cost index fund without being taxed?

Retirement Savings, IRAs, Mutual Funds
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April 2017

Once you roll the money into an IRA, you can hold a number of different investments from mutual funds to ETFs to individual stocks to bonds, etc. My preference is to use ETFs for my clients for the reasons you mentioned in your question. As a fundamental analyst, I want to hold the least expensive investments that accomodate my investment strategy. Many mutual funds under-perform their respective benchmarks and yet cost so much more than indexed ETFs. With the wide variety of ETFs in the market place today, an investor can get the allocation they need without having to pay high expenses to mutual fund companies. There are many reasons why advisors recommend mutual funds, but if you work with an advisor that is an experienced investment manager, most would prefer ETFs.

April 2017
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April 2017