Calling Retirement Account Experts

[the chi]

Okay guys, I've done some research on my own, but I'm looking for real people input.

Here's the deal.

I have 2 401(k) accounts from previous employers.

I received a letter from the most recent company stating I need to take my money and do something with it (so they dont have to deal with it or me) but apparently my only option from them without incurring penalties is to put it in a Traditional IRA.

Or I can cash it out. With a 30% penalty after all taxes are said and done. It's a only a lil account, so I'm considering taking the hit and just throwing whats left at some low balance accounts to pay them off completely.

On the other account, I have actually had considerable growth in the several years since I left, so cashing that one out is out of the question, but I need to put it somewhere...and apparently they have no limitations regarding what type of IRA I use.

Info on me that could impact the choice:

I dont make crap for money right now.

I hope when I get around to retiring, (unless Im struck by lightning and decide to be a stay at home mom/wife) that I'm making at least decent money.

We want to save a ton of cash, maybe do a little investing and retire to another country, where we can live like kings before we're 70 years old. He's military, so as long as the govt doesnt tank, he'll have a retirement check coming in as well.

Thoughts?