401K
I need advice as to whether I should start withdrawing from my former employer’s 401K to put the money in a Money Market account where it easily accessible. Or rollover to another 401K or Roth. I’ve been reading that due to the current situation in the US that there will be a stock market bust etc and large losses in 401K’s. My husband and I are retired with small pensions and social security and only my 401K. Thank you
Terry Says
Oh, wow. I wanted to answer this immediately. This is the time to do a direct ROLLOVER of your old 40l(k) to a place like Vanguard or Fidelity so you can get OUT of the stock market and into a money market fund!
Please read this article for instructions — you can do it by phone, immediately.
https://www.terrysavage.com/rollover-now/
When you do the rollover all the money should move into a government securities money market fund IRA. There is absolutely no reason to take any risk in the stock market at this stage of your life. And as you’ll read in the article, most 40lk plans are designed with only stock and bond funds, designed for younger, more aggressive investors who are still accumulating retirement funds — and have time to make up for losses. That is NOT YOU!
Call the toll-free number of Fidelity (800-FIDELITY) and tell them you want to do the rollover. Have your latest account statement in front of you. They’ll do all the work. It will go into an IRA rollover account and there will be no tax consequence. And tell them to put it in the government money market fund.
And PS Please write back and let me know you took my advice. Or I’ll be worrying!
