401 K Options for investment.
Terry, I value your opinion immensely so I have to ask you a question about my 401K. At the age of 591/2, I understand I have the option of moving some or all of my money from my company 401K plan to a plan managed by an outside firm. I’ve talked to PNC and JP Morgan about this option and understanding there are additional fees associated with this, they generally show they can produce higher returns than what I have done with mine. The 401 K plan at work offers no assistance or advice so moving to a managed plan makes some sense.
Your thoughts on this matter would be appreciated as I will be turning 591/2 shortly. We are aslo moving from Principal to Fidelity 401K plans at work shortly so the timing might be right to move now.
Thanks
Terry Says
Do NOT move any of your money — especially now that the plan provider will be Fidelity. As part of their contract with your employer, they will be offering some basic asset allocation advice to plan participants. Be sure to take advantage of this new service.
I would have suggested moving from the Principal-managed funds, because they have such high annual charges! But now that you will be with Fidelity, all the funds will be low cost and you will likely have better investment choices.
So sit tight and sign up immediately for the free plan advice that Fidelity will certainly be offering to particpants.
