I started investing in 401K pretty late (around 28) at my previous employer. That account has about $1,500 in it. I want to take it out of there and use it to invest in Vanguard funds. I already have an account at Vanguard where I have put in some starting money for an index fund.
Would it be wise to use that 401K to put into that index fund? I'm probably going to incur fees and penalties on it. I'm not sure how much. But seeing that the amount is relatively small I feel like putting it somewhere I can experiment with it.
If cashing out is a bad option then what would you suggest as a better option?
Any suggestions are welcome.