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401 K account

By Terry Savage on June 21, 2020 | Investments

I have a 401 K saving but is not contributed to and my question is : should I switch it to IRA account so I will not loose more money. Its not that big saving but for me it is because I am 60 and with this economy rocking , I might have a hard time to work until retirement time. What’s your advise ?

Terry Says

If you are still working for that company, you cannot move your 40l(k) to an IRA account. Your only choice is to ask the HR department which is the safest fund inside the 40l(k) so you don’t take too much risk.

But if you are no longer working there, call Fidelity at 1-800-FIDELITY and ask them to help you do an IRA rollover. They will handle the paperwork and you DO NOT touch the money!\
They will ask you how you want it invested at Fidelity — Tell them to start by putting it ALL in their government money market mutual fund.
At 60 you still have years ahead of you — so I would suggest putting 25% of the money into the Fidelity Equity-Income fund after all the money is transferred to the money market fund. They will do that for you as a second step.

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