Ask Terry Questions 401 retirement acct for early retiree

401 retirement acct for early retiree

By Terry Savage on June 01, 2015 | Financial Planning / Retirement

I have been retired now for 3 yrs. I am 61 yrs.old and I have no bills. I still have my 401 at my last employer. I don”t need the money right now. My investment advisor is always asking me to transfer it too a IRA or Roth, I have about 15 different stocks in my IRA”s right now..Do I keep my 401 or transfer it over?..I am getting my pension right now and soon my S.S. I have two girls at home age 12 and 8 yrs.old. My wife works and we are on her health Ins. My pension and S.S. totals are around $3.200./month. plus my wifes income. Thank you.

Terry Says:  OK, let me start with the first thing that comes to mind:  How on earth can you be RETIRED with two young children??  Who is paying for their clothing, or education, and how will you pay for college??  I hope your wife makes a lot of money!   I’m not kidding. The premise of your question just doesn’t ring true for me.  And I would never suggest that an able-bodied person take Social Security at age 62; it’s a HUGE cut in benefits over your lifetime, and definitely not the wise move.

As for your 40l(k), I would suggest that you roll it over — but NOT necessarily to this “investment advisor.”  Instead check with Vanguard or Fidelity or T. Rowe Price — each of which has a free investment advisory service for 40l(k) rollovers and will gladly provide you with advice on investments, and low-cost alternatives.

But if your “advisor” did not ask you how you are going to pay for life insurance, mortgage, and college, then he/she is not the person for you to be listening to.  Please write back and tell me you won the lottery and don’t have to worry about any of these issues.  And if that is not the case you need a financial planner who is qualified to open your eyes to your entire financial future.  Go to or to find one!



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