401k
Hi – I was let go from my job and have $150k 401k balance that I need to reinvest. It has been transferred to an account at Merrill Lynch as of now. I am 43 and have no other retirement accounts and $20k in savings. In the current market, what would be best way to reinvest this money? Thanks and love your segments on WGN!!! Wish you had your own segment every morning : )
Terry Says
Wait — STOP!! What do you mean by “transferred.” It should have been ROLLED OVER into an IRA rollover account.
And any investments made there will incur steep commissions or management fees!
So please write back and tell me if your former plan custodian ROLLED it into an IRA. And who decided it should go to Merrill Lynch?
Once you’re in there you can’t do another rollover for a year. But I’m assuming it is all in cash. Merrill must give you access to a S&P 500 Stock Index fund with low commission. You could move $5,000 a month into that fund, and leave the balance mostly in a money market fund.
OR now would be the time to get a financial planner who is not a commissioned salesperson. If you want to go that route, leave the money in the MM fund and work through www.Wealthramp.com to find a FEE-ONLY FIDUCIARY planner to advise you.
