I have 3 separate 401k accounts from 3 past employers that I have just let sit. I am finally thinking of consolidating all 3 into one IRA but the more I read the more confused I get so I was hoping to get some general advice here on things to consider.

First, 2 of the accounts have employer stock and I would like to sell it all and move it to other funds simply b/c I want to be diversified. It also sounds like I can't move employer stock into an IRA? If I want to sell of the stock, do I sell prior to the rollover and just put the money into cash for now to be reinvested after the rollover (when I have access to more fund choices)?

Second, are there any reasons I shouldn't rollover? All 3 accounts are with Fidelity and I will stay with them for now, but I'm not sure how to compare costs. Most of the funds I am currently invested in seem to be non-Fidelity funds and I'm wondering how that may affect things.

Third, anything else I should be considering?

Thanks!

call fidelity and ask them all these questions. This is all routine, very simple on your part and can be done in a day or two. The only thing that can hold you up is if your previous employer requires some sort of super secret password or pin to confirm your identity.

you can have your previous companies' stock in your rollover IRA. BUT, you will need a brokerage account as well. I've always found I cannot shed my employer's stock fast enough, so I have never done this. If you want ETF's, you'll have to get a brokerage account as well. Don't sell the stock, lay low and call Fidelity. They will sell and exchange for you.

Reasons not to rollover: 1) you think you will get sued sometime in the future and you'll have protections under EIRSA (or ERISA?) that your state won't offer for IRA's. This is a non-issue for me, since I never plan on being sued. Some people win lotteries, some people get pulled over all the time and some people never get sued. YMMV. 2) you make "too much" money and cannot contribute directly to a Roth IRA. If you rollover, then contribute to a non-deductible IRA and then try to convert to ROTH, you'll have to do it pro-rata. some people think this will be the last year Roth IRA conversions are around, I'm skeptical the gubimint will eliminate it since they have all these people doing conversions at 28% marginal tax rate when they'll more than likely retire in the 15 or 25% bracket. 3) you like the offerings your plan(s) offer (if it ain't broke, don't fix it).

It is quite simple to compare costs. I subscribe to the evil buy and hold, low cost investing approach. I simply head over to morningstar, plug in the ticker symbol and it gives a LOT of information. costs/fees are right there on the top line. top holdings (i think 25) etc. for bonds, it gives the avg duration, perhaps the convexity and the top holdings as well. I ignore the "stars" and who ever the fund manager is. For some reason, learning that Larry D Rufus is the fund manager and graduated from Wharton some 40 years ago gives a lot of people a secure feeling. I suggest you don't learn anything in the couple of sentences other than where the person went to school and how long they have worked for "the company." But, it makes great fodder at parties.

Picking funds is a whole 'nother animal. Educate yourself. You'll probably naturally have questions about asset allocation, and I suggest the Boglehead's wiki. http://www.bogleheads.org/wiki/Main_Page

Their book is also excellent, and every library I have ever come across has it.

Thanks BF.

I did plan to call Fidelity and ask questions, just wanted to be prepared first. Wasn't sure if a Fidelity rep would be like a Best Buy salesman who sounds like they know all the cords you need for your theater system but once you get home you realized they had no clue what they were talking about.

if you find that to be the case, you might want to consider rolling over to a different institution. I have always found the people who house my retirement accounts to be helpful and far from pushy. If you're getting a sales pitch, it probably isn't worth the headache considering there are so many options. If the person on the end of the phone isn't helpful, I'd at least hang up and try calling back to see if you just ran into a dud before writing off the whole.

They probably won't help with a new asset allocation unless you have uber amounts of money or fork some pork over to them. If you're looking to lower costs, you'll need to know how much to put into each of your new funds. I'm sure many here can help you, or the boglehead's can. I don't like putting together a portfolio for others, but I do enjoy commenting on it (which admittedly is easier, but this is a free service). For a measuring stick, if you drink the index fund kool-aid, your fees should be between 0.07% and 0.20%. ish.

ED-U-MA-CATION is the key. Can't learn it all in one day, but keep working at it.

They do have people who do that stuff. But this transaction is mostly just a paperwork/logistics thing, and they should be able to help you quite easily.

I read the concern to be that the rep would no know the right answer rather than they the rep is a salesman. In my experience this is not a serious risk. The reps at the major companies are trained well enough to ask for help if they are not certain of the answer.