Exploring Rollover Options

This past week, I started my quest to find the funds, that I would be rolling my 401-K over into. My first stop was at a local Credit Union (Educational credit Union). Unfortunately, the only funds they have would be a traditional IRA and/or CD's. Not any funds that would be aggressive and help grow that money over the next 20 years. Well, that is unless you want to settle for only 2%-3% interest. The best interest rate at the Credit Union would be a 60 month CD, with only a measly 3.80%. For an account that is currently on about $3,000 that is not enough to help get that up to the 1 million dollars or better that I need to live on in my retirement. Rather, I need something that is at least 12%. The lady at the Credit Union, was very happy to help and assist me with my questions. She even that I was doing the right thing to investigate my options and to try to determine the funds I wanted to roll into ahead of time.

That was very different to my talk with the people at one of the local banks. When I arrived at Core First, they were annoyed that I was even seeking information, without having the rollover kit in my possession. After being shuffled into the cubicle of some gal, that spoke briefly about the readitional IRA, Roth IRA and the CD's. She gave me the card of someone in their investment department and told to call him, once I actually had the rollover kit. Indicating, that they weren't interested in talking to me and helping me to get informed without that rollover kit. Something, that I won't actually see for another month or two, since I have two weeks, before my place of employment is sold. Of course, I could give the bank a second chance and call for an appointment with the financial counselor, but my gut reaction is if they don't want my business, then they won't get it.

I left that bank, and headed for work. The next stop, on my investigation trail, would come on my day off. Everyone's needs are different, but for me, I need something aggressive. Something that will grow with an average compounded 12% interest/dividend every year. That is why my next call, was to Roger Schumaker of Retirement and Tax Solutions (5909 SW 28th), in Topeka, KS). My appointment was Monday afternoon. I think, based on my personal knowledge of Roger, that he will be who I end up working with.


From the moment, I walked into Rogers office, I knew this was someone that actually cared about my investment and my future retirement. The thing is, it's not just finding someone that can do the job, but someone that will take the time to help you be informed about what you are going to do.

We discussed two options that he recommended one was "unit investment trusts", by First Trust.

A Unit Investment Trust is a fixed portfolio of securities, held for a predetermined time, investors purchase units which represent an undivided ownership in the securities contained in the portfolio.

While this option looks interesting, I am not sure it is for me. Sure it is more aggressive then the most aggressive mutual fund, he gave me information on. However, I do not want to be re-evaluating my retirement portfolio every 15 months or so. So that takes me to the other option that he presented. That being those mutual funds.

Since, I personally want something aggressive, I automatically eliminate the moderate and conservative funds. That leaves either growth or moderate growth funds. The family I am looking at is the TransAmerica Funds and is MorningStar rated. Both have an average return of more then 12% over the last 5-years. Last year the growth fund had an impressive 8.69% and the moderate growth had a 7.97%. However, the market is horrible right now, so it is quite possible, that the return this year, will be no where close to even last years low numbers. Even so, it would be an awesome time to invest, while I can get in at lower costs. Allowing me to ride the tide back up. The question is, do I have the stomach to all my retirement fund to ride out the current down turn. I think, I can do it. That is why I don't want to be forced to look at and re-evaluate my investment every 15-months.

For me, I think, the unit investment trusts would be perfect for my automobile savings. It would be a fund that, like a CD, would allow me to cash out part of the funds at maturity, to buy that new car. After which, I could reinvest whatever is left, to continue saving for the next car. However, for my retirement, I don't want to be watching the funds that closely.


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