Retirement and IRAs
Hi Terry,
I am retiring in early June and will be getting an IMRF pension, that will pay me a little over $8400/mo. I have two 457 retirement plans from 2 different employers. The one i left 15 years ago, worth $39k, i moved into an IRA last year. My other 457 plan from my current employer is worth a little over $41k. I need advise on what to do with this second 457. It is earning about 2.9% currently. Should i put this into an IRA as well? I want to travel and use the first $39k IRA to fund. Are there better options to invest my $$ in than putting the 2 into the IRAs?
Also, i am debating on whether or not to take my Social Security now (i am 65), or wait until 67. HELP please. love listening to all your advice btw. Thank you for that service you provide everyone.
Terry Says
First, oh please, please wait until you’re 67 –your full retirement age — to take your SS. You’ll have a penalty for earnings taken before that time. And you’ll permanently reduce your benefit.
Congrats on earning that great pension. YOu can live on that. AND, maybe even wait until 70 to take SS — when you’ll get your maximum benefit!
Second, you already know how to do a rollover. After retirement, move this 457 plan into a direct rollover to your existing rollover IRA. THEN — take a close look at how that IRA is invested!
Did you move to Fidelity or Vanguard, where you have a lot of diverse low-cost investment choices, and where you might leave as much as 25% in a safe money market fund? Or did a “financial advisor” grab your rollover, charging you fees and commissions for questonable investments?
Read this article about doing your own rollover to a safe, less expensive place. You can set up that new rollover using these instructions — and when it is done, you can do a direct rollover from your other account to this one!
https://www.terrysavage.com/rollover-now/
