Before doing anything evaluate the funds in the account. Sometimes the company 401K’s have access to institutional accounts which you may not have access to in a brokerage account. If that the case see if that fits into your asset allocation and leave it alone.
If the 401 K is not great the funds are not good and have high expense fees then consider a Roll over IRA. 5K is not much. Schwab has a family plan and when the family hits target amounts in the account you are subject to lower fees. This asset accumulation may work well. As to what to put the 5K into is entirely dependent upon your target asset allocation but I like the thought of the ETF for one time transaction although a good mutual fund that you dollar cost into over time may prove to be advantageous dow the line as you hit certain thresholds and the fees go down. Typically 50 and 100K.
