401 k Now that I’m retired
Hello Terry, l have a 401 from my previous employer State Farm . It’s with the S&P and it was doing very well for me. I was hoping to receive a monthly payment next year of around 1,200. But now with everything that Pres. Trump has been doing and the market dropping l don’t know what to do. I was hoping to leave it and still get a monthly distribution next year. But know l’m worried that l won’t have anything. What do you advise? I will be 65 this year, l’m on disability because of my cancer. My husband has Alzheimer’s and l need to do what is best so l don’t lose my money. Thank you in advance!
Nancy Vale
Terry Says
First of all, you need to rollover your 40l(k) plan to a place like Fidelity or Vanguard, where you have more conservative options for investment.
Read this for instructions: https://www.terrysavage.com/rollover-now/
As noted in the article, you will send the money directly to your new account to avoid taxes. Have Fidelity or Vanguard put it all in their Treasury money market mutual fund. Then you can take distributions at any time, but should have 15 or 20% withheld for taxes. With all these health issues, and your need for cash, this is the time to eliminate your exposure to the stock market.
