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Archive for October, 2007

401k rollover

October 24th, 2007 at 07:58 am

Siemens bought out UGS (my employer) in march. Prior to that UGS was owned by EDS. Prior to that SDRC was my employer until that dark day when the CEO sold out and merged us into EDS.

The 401k money prior to UGS has the option of being rolled into Siemens 401k plan, or rolled into an IRA. All UGS 401k money must be merged into Siemens plan. If you ever wondered why the 401k divides money up by "rollover contributions", "employee contributions" and "employer contributions", it because at times like this, you need to know who contributed what.

I chose to rollover the 69k from SDRC/EDS into an IRA with T Rowe Price.

Funds selected:
PRFDX (T Rowe Equity Income) 42%
PRDMX (T Rowe Diversified Mid Cap Growth) 14%
PRDSX ( T Rowe Diversified Small Cap Growth)14%
TRIGX (T Rowe International Growth and Income)14%
PRIDX (T Rowe International Discovery)8%
RPSIX (T Rowe Spectrum Income) 8%

The Siemens plan looks OK... it has one fund for domestic large cap, one fund for domestic small cap, one fund for international large cap, another for international small cap...

but no ticker symbols for any of above... no expense information for any of above... no return history for any of above.

I have a self directed brokerage option for the 401k which I might be considering.

**edit**- chose T Rowe Spectrum Income over New Income. Spectrum income is a fund of funds, which is 75-80% in bonds and cash (other 25% is in PRFDX). Because spectrum income has exposure to high yield and foreign bonds, it's return is higher than most bond funds (8-9% type returns). New Income is one of many bond funds in Spectrum Income.