64 and Laid off
I am a single women and was hoping to semi retire in 2 years but I just got laid off at age 64. The company I worked for filed bankruptcy and I was wondering where I should put my 401k. Its a little over 200,000, not enough to retire on but I don’t want to lose anymore.
Thanks,
Terry Says
Oh, I’m so sorry to hear that. I hope you’ll think of this as a chance to do something new, and different, to earn a little money, so you can postpone taking Social Security until your Full Retirement Age — near 67.
In the meantime, yes do a direct rollover. Read this column: https://www.terrysavage.com/rollover-now/
That explains the process.
The next question is what to do with the money when you do the rollover. First, I would suggest you do the rollover to T. Rowe Price. Call them at 800-638-5660 They’ll help with the process. I would suggest you put half in their Equity/Income fund (one of my favorites) and half in their government money market fund. Yes, there’s a little risk in the first fund — but less over the long run, and it will help offset the impact of future inflation. Hopefully, you will have at least 20years to make it grow!!
In 10 years, you’ll have to start taking RMDs — at age 73. That will give the money plenty of time to work for you.
