Well, you're on the right track: first, it needs 4 wires. The bigger question, though, is: maybe you might wish to just get a new wiring harness with the new switch? They are not terribly expensive, and will save you lots of grief, based on what else you might find from a PO that did that sort of 'fix'?
Which bike is this? There are 4 different harnesses for the CB750, and 3 (some say 4) for the 550. There's only 1 for the CB500. The 350F has 1 and the 400F has two.