I have several questions on moving money from a 401k to an IRA. Currently
the money is in a T Row Price Retirement 2015 and Retirement 2020 and the T
Rowe Price S&P Index 500 fund. That is a company sponsored plan. I plan to
move it to the ‘regular’ T Rowe Plan funds of the same name. I will be 70
in Sept of this year and will probably not need the money.
I am not comfortable paying 1.8 or 2% fees from Investment Advisors to
follow their recommendations of moving it to other funds.
Any thoughts you can offer? I reside in Rochester,NY
Terry Says: I think you’re on the right track. But since you already have money at T. Rowe Price (as I do) you should take advantage of their personalized retirement income modeling service. It uses “monte carlo” modeling to advise on a mix of funds, and a withdrawal plan that will make your money last your lifetime. Even if you now think you won’t need the money for a while, the advice is FREE since you have money there, and will be helpful. Remember, you MUST start withdrawing in the next few years (by the year after you reach age 70-1/2) and if you don’t plan for that you may be forced to liquidate funds at the wrong time. Also, be aware that just because you are in a fund “dated” 2015 or 2020, that does not mean you are “safe” — because those funds keep a significant portion invested in stocks since your life expectancy is another 20 years! So you should know what’s “inside” those funds now — and whether this is the optimal asset allocation for your situation. Take advantage of their excellent retirement investment planning.