Where to invest small nest-egg?
Dear Terry,
I’m 65, single and getting ready to start collecting social security and scale down to part-time work. I have no debt and just $25K in a 401(k). I also have $5,000 in a traditional bank savings account for quick/easy access in case of a real emergency (that I hope I won’t need to touch).
My plan is to live off my social security income and part-time work earnings, and “forget about” the 25(k) until my very old age, or if illness or disaster strikes before then. I am so confused about what I should do with my tiny but hard-earned nest egg. Can I leave it in the 401(k)? Should I move it to another investment platform? CDs? I grew up poor and have been living paycheck to paycheck my whole life. I’m overwhelmed and confused by my options.
Thanks for your time!
Terry Says
You are not alone in your situation and your fears. Your 40lk is designed with investments for younger people who can take more risk with their savings over the long run. Your “run” is much shorter. I believe you have reached the point where you don’t want to lose a penny of this savings.
So read this column and roll your 40l(k) into a money market account at Vanguard or Fidelity: https://www.terrysavage.com/rollover-now/
You may not earn much interest, but you won’t lose a penny!
