Advice pls

[Rga20]

Now that I've finally retired what do I do with my 401k. Don't anticipate needing the money but don't want to lose it either. Appreciate your inputs.

[Dana1963]

Check with your plan administration last year mine changed from when you turn 70 + 6 months now mine is 72 + 6 months

[Bill14564]

My 401K provider allows me to keep the money with them and continue to manage it. I cannot make further contributions (I'm retired after all) but I don't need to move it.

You can also move it to another managed IRA, perhaps with a financial planner or investment adviser. Just be careful about how you move the money so it doesn't get taxed along the way.

[Stu from NYC]

Now that I've finally retired what do I do with my 401k. Don't anticipate needing the money but don't want to lose it either. Appreciate your inputs.

At some point you need to take out a portion each year and pay tax on it. They deferred it this year but probably will reinstate it in 2021

[retiredguy123]

Check with your plan administration last year mine changed from when you turn 70 + 6 months now mine is 72 + 6 months
If you are referring to the new law that changed the required minimum distribution starting age, it changed from 70-1/2 years to 72 years, not 72-1/2 years.

[retiredguy123]

Now that I've finally retired what do I do with my 401k. Don't anticipate needing the money but don't want to lose it either. Appreciate your inputs.
I would suggest that you set up an IRA account with Vanguard or another low cost investment company. Then, do a direct transfer of all assets from the 401K account into the IRA, and maintain a similar asset allocation. I would not feel comfortable leaving my money in a 401K plan when an IRA allows me to totally control the assets and how they are invested. And, you will probably save money on the management fees. It was one of the first things I did when I retired.

[Cupcake57]

Now that I've finally retired what do I do with my 401k. Don't anticipate needing the money but don't want to lose it either. Appreciate your inputs.

Rollover into IRA at Vanguard-Vanguard Target Retirement 2020 VTWNX with expense ratio 0.13%; mine making almost 11% this year. Its balanced, so if there is a crash it won't be so painful.

[sail33or]

If the Stock Market crashes "EVERYTHING" crashes. In 2008 Crash, all Bonds, all stocks, all gold, all REIT's, everything crashed. In a crash diversity does not protect you. Just saying. Only Chickens have real value. I will let you figure out why.

[Rga20]

Thanks everyone. IRA conversion confirmed my thinking. Appreciate the input.

[Hape2Bhr]

If you are referring to the new law that changed the required minimum distribution starting age, it changed from 70-1/2 years to 72 years, not 72-1/2 years.

If you turn 72 after July 1, 2021...you can defer your first RMD until April 1, 2022. However, you must also take your second RMD before the end of the year 2022. This could possibly put you in a higher tax bracket because you've taken two distributions in one year. :)

[retiredguy123]

If you turn 72 after July 1, 2021...you can defer your first RMD until April 1, 2022. However, you must also take your second RMD before the end of the year 2022. This could possibly put you in a higher tax bracket because you've taken two distributions in one year. :)
Huh? The way I understand the rule, you must take the RMD in the year that you turn 72. So, if you turn 72 in 2021, you must take the RMD starting in 2021, and every year thereafter. It doesn't matter when you take it during year, it is taxable income for the 2021 tax year. The RMD was waived for 2020 because of COVID.

[JohnN]

I would suggest that you set up an IRA account with Vanguard or another low cost investment company. Then, do a direct transfer of all assets from the 401K account into the IRA, and maintain a similar asset allocation. I would not feel comfortable leaving my money in a 401K plan when an IRA allows me to totally control the assets and how they are invested. And, you will probably save money on the management fees. It was one of the first things I did when I retired.

I did the same thing, that's the way to go, convert it to an IRA. Eventually you will need to make withdrawals, when you do , if you don't need the $$$, put it into a Roth IRA. That way you can keep it invested and it's tax-free from that point on - after you pay taxes on the amount you convert of course.

[retiredguy123]

I did the same thing, that's the way to go, convert it to an IRA. Eventually you will need to make withdrawals, when you do , if you don't need the $$$, put it into a Roth IRA. That way you can keep it invested and it's tax-free from that point on - after you pay taxes on the amount you convert of course.
Normally, you can do a ROTH conversion with Traditional IRA money. But, if it is an RMD withdrawal, you can't put that money into a ROTH IRA.

[Ironnan]

I highly recommend the Ric Edelman book “The Truth About Retirement Plans”. I am in multiple groups, attend all sorts of seminars and this book has been the most comprehensive source to educate me. I did something right retiring at 59.

[villageuser]

You can keep your funds in your 401K or roll-over to an IRA or a Roth IRA. Do check out the philosophy of whatever company you decide to go with, and what amenities they offer. I went with T Rowe Price because I loved their philosophy in that we are there for the long-haul, and not for short-term trading, their funds have always done me well, they do offer a good mixture of funds from other companies, and they offer amenities, such as providing me with a financial advisor, at no charge, to help me decide how to balance my portfolio for my needs and risk comfort. I have actually only taken advantage of that option one time in the last twelve years but it is nice to know they are there for me.

[Songbird]

If your taxable income this year without a 401k distribution is below $80,250, you may want to consider taking a distribution this year to bring your TI up to $80,250. The withdrawal will be taxed at the 12% rate level. It's unlikely you will be able to withdraw at that low rate in the foreseeable future. Rolling it into a Roth would seem to be a wise move.

[Coopcasa]

I did the same thing, that's the way to go, convert it to an IRA. Eventually you will need to make withdrawals, when you do , if you don't need the $$$, put it into a Roth IRA. That way you can keep it invested and it's tax-free from that point on - after you pay taxes on the amount you convert of course.
Agree with this approach (with caveat that we don’t know all the particulars of your situation, and suggest that a CFM can better help you sort this out). If you believe that capital gains taxes are going to increase in coming years, roll the 401k over into a Roth this upcoming tax season, pay the lower tax rate on the gains, then enjoy tax-free withdrawals at RMD (or earlier).

[CoachKandSportsguy]

Now that I've finally retired what do I do with my 401k. Don't anticipate needing the money but don't want to lose it either. Appreciate your inputs.

As a long time corporate finance manager, your question indicates that you would probably benefit from a Certified Financial Planner, CFP. That way, the CFP could explain the investment risks and strategies, tax implications, and how a trust(s) would help your entire estate.

An employer sponsored 401(k) has limited options, and moving to a self directed IRA will provide more investment options, able to be tailored to your risk profile, which is the reason why posters recommend you change custodians or financial service companies.

However, without understanding the size of your estate and investments, there are tax favorable strategies for taking larger distributions than the minimum at different times. If you don't need the money, then leaving a distribution in a taxable account with proper investment strategy is a future step

But get some professional tax and investment help

[Girlcopper]

Now that I've finally retired what do I do with my 401k. Don't anticipate needing the money but don't want to lose it either. Appreciate your inputs.
Hire a financial advisor. I wouldnt take advice from random people

[Tankerrich]

I would suggest that you set up an IRA account with Vanguard or another low cost investment company. Then, do a direct transfer of all assets from the 401K account into the IRA, and maintain a similar asset allocation. I would not feel comfortable leaving my money in a 401K plan when an IRA allows me to totally control the assets and how they are invested. And, you will probably save money on the management fees. It was one of the first things I did when I retired.

Did the same in 2014. Moved 401K into IRA. Had a financial advisor. Never looked back. IRA opens up everything to you. 401K locks you into what your company's group selected for you to invest into.

[Kjbatl]

Be careful with the advice of everyone here on converting your 401K. That is not always the best advice depending on your specific options for investment with who your past company has managing as well as the fees. Example, i converted my 401K to an IRA and have an outside management company managing it. We left my wife's with Fidelity who was the management company of her 401k from work. There are many investment options including targeted funds like the 2020 vangard fund mentioned. The fees are a flat $6.00 per quarter. There are no advisors that are going to charge you so low, example i pay .75% and most of the companies i interviewed charged 1% to 1.5% depending on the size of your 401k. So my IRA now had to make almost .74% more that her 401k before they are even.
The other side of this is what is included for the management fee they charge. My IRA is with Personal Capital and they provide other services that were important to me like current/long term spending planning, prior tax year review as well as current planning, estate planning, etc. Think about what types of services you want to include for what you are going to pay. Interview at least 3 or 4 and not only ones here in The Villages. There are good advisors that do more over Zoom and occasional onsite meetings and that is why I went with Personal Capital. Been over a year and they seem to be doing more than what I expected.

[PugMom]

we have good luck with Fidelity, & use managed accounts. this can earn xtra $$, but whatever you earn is considered income by the IRS. is something to keep in mind, but sometimes that $$ can make all the difference in keeping up with unexpected expenses.

[caljeff]

My 401K provider allows me to keep the money with them and continue to manage it. I cannot make further contributions (I'm retired after all) but I don't need to move it.

You can also move it to another managed IRA, perhaps with a financial planner or investment adviser. Just be careful about how you move the money so it doesn't get taxed along the way.

I have a 401K in the same status; I agree with the response issued in the above post.

[PaulinTV]

Now that I've finally retired what do I do with my 401k. Don't anticipate needing the money but don't want to lose it either. Appreciate your inputs.

If you are asking here it would seem that you need a qualified financial advisor. This group will perform heart surgery if you ask about it! You might want to ask about recommendations for a FA and you should get a sufficient number of good suggestions to start your interviewing process.

FA's are worth their weight in gold as they can suggest the appropriate way to grow the money, protect from taxes, and consider heirs in the planning based on your personal situation.

[PugMom]

that was why i mentioned Fidelity. their advisors can answer all kinds of questions we can't here. it would be wise for OP to do constructive investigating before making any financial decisions.

[llaran]

I would suggest that you set up an IRA account with Vanguard or another low cost investment company. Then, do a direct transfer of all assets from the 401K account into the IRA, and maintain a similar asset allocation. I would not feel comfortable leaving my money in a 401K plan when an IRA allows me to totally control the assets and how they are invested. And, you will probably save money on the management fees. It was one of the first things I did when I retired.

excellent answer. we did that and then when we moved here we went to A financial planner and put everything in an annuity, sorry we did.

[Jazzman]

Now that I've finally retired what do I do with my 401k. Don't anticipate needing the money but don't want to lose it either. Appreciate your inputs.

Enlist the aid of a financial advisor who charges you a straight fee for review of your portfolio and options and does not receive any commission from any investment scenarios he/she might suggest. Asking in this site for financial advice is well.......

[Villages Kahuna]

This may the worst place that you should seek advice about your financial well-being.

I’d suggest opening an account with a full-service broker/financial advisor. If you go to the website of the firm and office where you’d like your account, most will list all of their advisors showing their experience and professional qualifications. Pick one, call and make an appointment. Then decide if you’d be comfortable with the advice that person will provide. Of course, you can also rely on the referrals of advisors from close friends, whose advice you might feel comfortable with.

[jerry van]

Just make sure all transfers are completed in 30 days or less to avoid taxes. Good luck.

[stan the man]

When I need my shoes fixed - I go to a shoemaker - when I want financial advice I do not go to totv

[retiredguy123]

While it may be a good idea to hire a "financial advisor" if you need assistance with your money, not all of them are the same. Anyone can call themselves a financial advisor, but many are actually a life insurance salesperson or stock broker in disguise. For example, I have known many people who have been advised by a life insurance salesperson to transfer all of their money into an annuity, which yields a huge commission for the "advisor", and is usually a bad investment. They didn't even realize that the annuity product they purchased was a life insurance product because the advisor told them that it was a retirement investment, and never used the word annuity or insurance. If you hire a financial advisor, you should get a signed statement from him/her that they are acting as a "fiduciary" for you. This will provide some legal protection, but you should also ask a lot of questions and get more than one opinion. You should also ask the advisor how they make money, by commission or by charging you a fee for their time.

[Hape2Bhr]

Huh? The way I understand the rule, you must take the RMD in the year that you turn 72. So, if you turn 72 in 2021, you must take the RMD starting in 2021, and every year thereafter. It doesn't matter when you take it during year, it is taxable income for the 2021 tax year. The RMD was waived for 2020 because of COVID.

This from the IRS website:

Beginning date for your first required minimum distribution

IRAs (including SEPs and SIMPLE IRAs)
April 1 of the year following the calendar year in which you reach age 70½, if you were born before July 1, 1949.
April 1 of the year following the calendar year in which you reach age 72, if you were born after Jun 30, 1949.

[lawgolfer]

1. Go to the Chas. Schwab office at Lake Sumter. You will be assigned an advisor, who will be a registered broker. All Schwab advisors are salaried and do not receive commissions. Convert the 401K to an IRA. The advisor will have all the forms and will do all the work.

2. Schwab charges next to nothing for trades when you use its website. It has mutual funds of every variety (i.e. Dow 30, S&P 500, Emerging Markets etc). If you do nothing else, put your money in an "index fund" which mirrors the market. On average, the S&P 500 has gained 10%/yr over our lifetimes and there is no reason to believe this will change.

3. Depending on your other income, your Federal Tax rate, and the size of your expected estate, you will need to consider converting some or all of your funds to a Roth IRA. The Roth IRA is the only "gift" taxpayers have ever been given by the government. For any part of your 401K or regular IRA which you convert to a Roth, that amount will have to be included in your taxable income for the year of the conversion. However, once your money is in a Roth, any increase in the value of the account and any distribution you take is free of all taxes. Finally, any amount in a Roth which goes to a beneficiary on your death, he/she receives free of income tax, although there are time limits, roughly 10 years, within which the beneficiary must withdraw the money from the Roth.

4. Schwab's advisor will walk you through all this. You will be shocked to learn what the administrator/manager/advisor of your 401K has been charging you and what you will save by placing your account at Schwab. I learned this lesson 30 years ago when a new partner joined our firm. He had been a stockbroker. At the time, our pension/profit sharing fund was managed by Manulife. I and the other partners regularly worked 10-12 hr/day. At the end of the year, Manulife calculated the amount we could contribute to the fund and we sent a check. Until the new partner pointed out what we were paying Manulife, none of us had a clue. We changed to a self-directed fund and moved the money to Chas. Schwab, saving large amounts each year thereafter. Over the remaining course of my career, the total savings were significant.

[dougawhite]

A 401K has one advantage over an IRA if you were 55 or older when separated from your last employer you can
cash out from the 401K without incurring the extra 10% income tax penalty
(obviously it would be taxable income, but not penalized). You can't do that if you convert the 401K funds to an IRA.

[chrissy2231]

Transfer to Paul at Raymond James in Brownwood. Then buy silver & gold. Silver doubled since I bought it.

[retiredguy123]

This from the IRS website:

Beginning date for your first required minimum distribution

IRAs (including SEPs and SIMPLE IRAs)
April 1 of the year following the calendar year in which you reach age 70½, if you were born before July 1, 1949.
April 1 of the year following the calendar year in which you reach age 72, if you were born after Jun 30, 1949.
Thanks, that is correct. But, to clarify, the April 1 deadline for taking the RMD only applies for the first year that you have an RMD. For all following years, you are required to make the RMD by December 31 of the RMD year.

[waynehal55]

I would suggest that you set up an IRA account with Vanguard or another low cost investment company. Then, do a direct transfer of all assets from the 401K account into the IRA, and maintain a similar asset allocation. I would not feel comfortable leaving my money in a 401K plan when an IRA allows me to totally control the assets and how they are invested. And, you will probably save money on the management fees. It was one of the first things I did when I retired.

I totally agree with you.I have invested with Vanguard for 40 years now,
they are a great company,owned by the shareholders.

[Yjacket74]

Huh? The way I understand the rule, you must take the RMD in the year that you turn 72. So, if you turn 72 in 2021, you must take the RMD starting in 2021, and every year thereafter. It doesn't matter when you take it during year, it is taxable income for the 2021 tax year. The RMD was waived for 2020 because of COVID.

Hape2Bhr is correct. I copied the following text from the 2019 IRS publication 590-B Distributions from Individual Retirement Account (IRAs):

What’s New for 2020
Required minimum distributions (RMDs). For distributions required to be made after December 31, 2019, the age for beginning mandatory distributions is changed to age 72 for IRA owners reaching age 70 ½ after December 31, 2019. The required beginning date for IRA owners who haven't reached age 70 1/2 by the end of 2019 is April 1st of the year following the year of the owner’s 72nd birthday.

[KRM0614]

Now that I've finally retired what do I do with my 401k. Don't anticipate needing the money but don't want to lose it either. Appreciate your inputs.
For long term ETF stocks are good with a reserve of cash for future trades. Negotiate with investment advisors but do your homework on mutual funds and avoid bonds except corporate for solid corps

[Blackbird45]

As far as the withdrawal I invest in a utility which is a safe investment and dividend covers what I am forces to remove.
Plus it went up in value 20% over the past 4 months.

[chas39]

Now that I've finally retired what do I do with my 401k. Don't anticipate needing the money but don't want to lose it either. Appreciate your inputs.
Start moving some each year to savings or a regular account

[shirleyjerez]

I have an excellent Financial advisor . Dale Cebert. He will always look out for you. I have had him for 20 yrs . I have got lots of friends who use him and love him

[Stu from NYC]

While it may be a good idea to hire a "financial advisor" if you need assistance with your money, not all of them are the same. Anyone can call themselves a financial advisor, but many are actually a life insurance salesperson or stock broker in disguise. For example, I have known many people who have been advised by a life insurance salesperson to transfer all of their money into an annuity, which yields a huge commission for the "advisor", and is usually a bad investment. They didn't even realize that the annuity product they purchased was a life insurance product because the advisor told them that it was a retirement investment, and never used the word annuity or insurance. If you hire a financial advisor, you should get a signed statement from him/her that they are acting as a "fiduciary" for you. This will provide some legal protection, but you should also ask a lot of questions and get more than one opinion. You should also ask the advisor how they make money, by commission or by charging you a fee for their time.

Very true. Have to ask how they make money, best to go to someone who charges a fee for giving advise.

[Carla B]

Very true. Have to ask how they make money, best to go to someone who charges a fee for giving advise.

Can you name any around here? I'd like to know.

[Joe C.]

I'd call Blackston Financial .... they are on 466 just east of Morse Blvd, and just west of the Golf cart store.

[retiredguy123]

Can you name any around here? I'd like to know.
I invest exclusively with Vanguard and Fidelity Investments. Vanguard has Certified Financial Planners available for consultation for free. But, you may need to have a certain amount of assets to use their free service. I would highly recommend Vanguard for any type of investing and advice. If you want to be able to meet in person with someone, Fidelity has an office at Lake Sumter. I don't think you can go wrong with either Vanguard or Fidelity for any type of investments. I prefer to use mutual funds, but, If you want to invest in individual stocks and bonds, you can set up a brokerage account and they will help you.

[DAVIDW5084]

I transferred mine to a self managed IRA, if you do a direct tranfer there is no problem with withholding taxes or effect on your income until you make a withdrawal. Any broker can transfer the funds for you so pick your own location to move your funds. Fidelity, TD Ameritrade, now part of Schwab or any of dozens of others. I would pick one with a local office so you can go in and get face to face information on what help you can get from the broker and trading, most will assign you an individual broker if you have more that $500, 000.

[CoachKandSportsguy]

While it may be a good idea to hire a "financial advisor" if you need assistance with your money, not all of them are the same. If you hire a financial advisor, you should get a signed statement from him/her that they are acting as a "fiduciary" for you. You should also ask the advisor how they make money, by commission or by charging you a fee for their time.

No disagreement! Independent CFP is the way to go. But when some one asks what do I do with a 401K? that person appears to not be knowledgeable enough such that a financial planner is necessary versus getting overwhelmed with 50 TOTV posts about what each poster has done without any information about how big, and total assets, taxable and non taxable, trusts, properties in other states, etc.

sportsguy

[jagdl]

Make an appointment with a financial advisor. We met with Samantha at Fidelity. First meeting was just to get to know her and the company. So happy we did. Talking with her is like sitting down with a friend while she talks basic steps and told us things we never thought or knew. Never go with a planner that tells you don't worry about it, they will handle it. Right now everyone is making money. Find someone you enjoy having coffee with and learn from them. It is Free.

[Mikeodonnell73]

I believe it changed to 72 even and not 72 1/2.

[Mfrench]

Talk to a financial advisor. He may advise you to invest in gold.

[dadoiron]

Now that I've finally retired what do I do with my 401k. Don't anticipate needing the money but don't want to lose it either. Appreciate your inputs.

Our employer 401k had Fidelity with the best and lowest cost funds (.001) they negotiated. When I got here the Villages Fidelity talked me into converting to IRA saying it was the same. They said they are a fiduciary here. FYI they are not and their funds cost more $$$$$. Staying in your 401k may be your best move.

Check twice before you move it. You can't undo it.

[petsetc]

Rollover into an IRA at Vanguard.

Read free ebook at paulmerriman.com - Get Smart or Get Screwed

JMHO

[Neils]

Be careful with the advice of everyone here on converting your 401K. That is not always the best advice depending on your specific options for investment with who your past company has managing as well as the fees. Example, i converted my 401K to an IRA and have an outside management company managing it. We left my wife's with Fidelity who was the management company of her 401k from work. There are many investment options including targeted funds like the 2020 vangard fund mentioned. The fees are a flat $6.00 per quarter. There are no advisors that are going to charge you so low, example i pay .75% and most of the companies i interviewed charged 1% to 1.5% depending on the size of your 401k. So my IRA now had to make almost .74% more that her 401k before they are even.
The other side of this is what is included for the management fee they charge. My IRA is with Personal Capital and they provide other services that were important to me like current/long term spending planning, prior tax year review as well as current planning, estate planning, etc. Think about what types of services you want to include for what you are going to pay. Interview at least 3 or 4 and not only ones here in The Villages. There are good advisors that do more over Zoom and occasional onsite meetings and that is why I went with Personal Capital. Been over a year and they seem to be doing more than what I expected.

Vanguard 2020 is a lower cost fund, but currently charges 0.13% load fee, plus whatever account charges they show you. No free lunch.

[retiredguy123]

Vanguard 2020 is a lower cost fund, but currently charges 0.13% load fee, plus whatever account charges they show you. No free lunch.
Just to clarify, the Vanguard 2020 fund is a "no load" fund, which means that there is no sales fee to purchase shares. It does have an expense ratio of 0.13 percent to manage the fund assets. This is a relatively low expense ratio as compared with similar funds. All mutual funds have a management fee built into the fund.

[valuemkt]

Serious question with a normal amount of Wise A$$ responses. Many 401Ks have very restrictive investment choices. 10 years ago you may have had a good amount of your funds in "money markets", which had a decent yield. They are now yielding close to what the banks pay .. a tad above zero. My 401Ks were both administered through Fidelity - I transferred them "IN KIND" to Fidelity IRAs. IN KIND means that your investments didnt change at all. That gives you time to decide how to set up your account for the "distribution" phase of your life. You no longer will have the ability to make up huge losses with "buying low" when the market tanks. Some people go crazy and make silly bets on stocks and investments they don;t understand. They end up going back to work at minimum wage jobs. The key, as you alluded to, is capital preservation, with at least enough growth to cover inflation. Fidelity, Vanguard and a number of other credible companies offer a wealth of options and model portfolios for this purpose. If you are totally uncomfortable with managing your fund, you can consider a financial advisor.. That opens another discussion altogether. Just remember the "Free Lunch Theorem" - There is no such thing as a Free Lunch ! Good Luck

[bilcon]

I have had my 403B with Fidelity Investments for over 30 years and converted to IRA when I retired. I like the fact that I am in charge of making decisions with my money and can change Mutual Funds as I see fit. I do spend a lot of time studying funds, market sectors, fund managers etc. It gives me something to do and I can take chances because I also have a wonderful pension. Good Luck! You got some good advice from the previous posts.

[Marlene36]

We recommend Liz at TB Financial - attend one of her free Annuity 101 "classes" at local restaurant if you don't know about the newer types of annuities available. She would also meet with you personally to make custom recommendations for you. We have been so impressed with their work for us and have met many of their other clients at their pre-COVID socials. They offer a unique r personal touch. TB Financial, Fruitland Park off 441, 352-350-1161 Tell them the Ackerman's recommended them.

[l2ridehd]

I would suggest that you set up an IRA account with Vanguard or another low cost investment company. Then, do a direct transfer of all assets from the 401K account into the IRA, and maintain a similar asset allocation. I would not feel comfortable leaving my money in a 401K plan when an IRA allows me to totally control the assets and how they are invested. And, you will probably save money on the management fees. It was one of the first things I did when I retired.

That is the best way to handle a 401K when you retire. The only way I would consider leaving it would be a Federal TSP account. Their cost and investment options are close to Vanguards. Most companies 401K plans have a somewhat limited selections of investments and higher fees. Vanguard has very low fees and a very broad selection of investments. If you contact Vanguard they will handle the transfer from your company to them for free and make sure you don’t cause a taxable event.

[Eg_cruz]

Now that I've finally retired what do I do with my 401k. Don't anticipate needing the money but don't want to lose it either. Appreciate your inputs.
I would look for a local Chartered Financial Advisor, review with them. The problem with 401K they limit you on what your allow to invest in and when you pull funds out they automatically withhold 20% depending on your tax bracket this may not be the right percentage. The last thing is a financial can help set up your goals where the 401k may not have a personal you can speak to on a regular basis.
Look up some seminars that have financial brokers speaking, this way you can see if the even appeal to you if so set up a personal meeting , if not move on. Worth your time

[Eg_cruz]

We recommend Liz at TB Financial - attend one of her free Annuity 101 "classes" at local restaurant if you don't know about the newer types of annuities available. She would also meet with you personally to make custom recommendations for you. We have been so impressed with their work for us and have met many of their other clients at their pre-COVID socials. They offer a unique r personal touch. TB Financial, Fruitland Park off 441, 352-350-1161 Tell them the Ackerman's recommended them.
Can put everything into annuities.

[retiredguy123]

We recommend Liz at TB Financial - attend one of her free Annuity 101 "classes" at local restaurant if you don't know about the newer types of annuities available. She would also meet with you personally to make custom recommendations for you. We have been so impressed with their work for us and have met many of their other clients at their pre-COVID socials. They offer a unique r personal touch. TB Financial, Fruitland Park off 441, 352-350-1161 Tell them the Ackerman's recommended them.
An annuity is always a great investment for the person who sells it to you. They make a huge commission, sometimes as much as 10 percent. But, it is almost always a bad investment for the investor. It is never a good idea to purchase an annuity with tax deferred retirement assets because these assets are already protected from current taxes. My opinion.

[valuemkt]

can put everything into annuities.

omg no !!! Run!!!

[DAVES]

I did the same thing, that's the way to go, convert it to an IRA. Eventually you will need to make withdrawals, when you do , if you don't need the $$$, put it into a Roth IRA. That way you can keep it invested and it's tax-free from that point on - after you pay taxes on the amount you convert of course.


I regularly laugh at financial advice on what you need to retire. All you need to know is how long you will live, rate of inflation till you die, rate of return on your investments and the number can be calculated. Oh and throw in what will kill you A car crash is far less expensive then say cancer or Alzheimers or????? Oh and the tax rate till you pass.
All are unknown.

I think the option has been lessened. My mom left my sister and me her IRA as an inherited IRA. She only paid tax on what she was forced to withdraw. It is not much money. I do face a required minimum distribution. At no charge my brokerage, I think they all do sends us a letter as to how much we need to withdraw. It is not much money.
My parents didn't have much. It is a gift that keeps on giving long after you pass.

[Birdbathbabe]

I would suggest that you set up an IRA account with Vanguard or another low cost investment company. Then, do a direct transfer of all assets from the 401K account into the IRA, and maintain a similar asset allocation. I would not feel comfortable leaving my money in a 401K plan when an IRA allows me to totally control the assets and how they are invested. And, you will probably save money on the management fees. It was one of the first things I did when I retired.
Thanks

[Birdbathbabe]

Thank you

[Catalina36]

You didn't say who your plan was with? Vanguard, Fidelity, Charles Schwab, etc.
Vanguard has a very high rating and low cost. Depending on your plan and the company you worked for you may want to or your company may require you to move your 401K / IRA to another company.
First just remember when you make a move to another company it could take several days or a week to complete the move. During that period of time your account will be in limbo not effected by the market ups & downs.
I recommend you stay with Big company like Vanguard, Charles Schwab, Fidelity etc. I personally don't trust the small independent companies. Remember Bernie Madoff.
You want a financial advisor who you can talk with and someone who will return your calls. There are so many ways to invest your 401K. There are companies who will use a Robo Advisor for your account investments based on your individual preferences. I would interview several companies. When I retired I interviewed Fidelity, TD Ameritrade, Vanguard, and Charles Schwab.
Remember its your money, be smart, not all advisors look out for your best interest. You want to use a company who has Fiduciary Certified Financial Advisors who by being Certified must keep your best interest in mind.

[Catalina36]

DO NOT INVEST IN ANNUITIES!!!! Like someone said the Banker makes commission on selling you a annuity. A Banker closed out my 91 year old father's CD when it came due and sold him a annuity???? I mean really at 91 you don't need a Annuity.
ANNUITIES have small print that nobody reads until you need your money. Annuities are for the LAZY person who doesn't want to take the time out to learn simple investing. Investing is not hard just put a little effort into it. Hey it's your money, don't let someone else have control of your money!!!!