That is a good question and a difficult one to answer without knowing a little more about your situation. However, I am happy to give some general advice. For most people in your situation, I would recommend a transfer to a rollover IRA. From there you can manage the investments as you see fit. In your situation, you may want to explore the Vanguard Retirement Target Dated Fund for 2015 (VTXVX). Rolling your 401k to Vanguard once you retire will keep your costs low and allow you to control your investments. The VTXVX will give you a diversified conservative portfolio at a low cost. Good luck!