401k

By Terry Savage on January 22, 2025 | Financial Planning / Retirement

My husband and I are retired. I have a large 401k ( that was started when I was working) with 1 investment account and also have a substantial joint portfolio with my husband through another investment firm. We want to combine all our investments to one investment firm to make it easier to track. Does it make sense to roll it over into our portfolio or, should I keep the 401k separate? I’ve always heard it’s good to diversify.

Terry Says

Your old 40l(k) is YOUR retirement fund — and not a joint investment. It might make sense to do a rollover, since once you’re retired you might want some more conservative investment choices than are typically offered in a 40lk plan for younger workers in the accumulation stage.
Read this: https://www.terrysavage.com/?post_type=post&s=rollover+now

But as part of your question, I see that you’re wondering about whether to do that rollover to another firm, not just the suggested Fidelity or Vanguard.
The answer to that depends on whether and how you’re paying for advice at that firm. Are you paying based on Assets Under Management (AUM), and would they lower their fee if you added another account?
Are they FIDUCIARY, fee-only, advisors — not charging commissions on the investments they recommend?

It could be beneficial if you have a good advisor for him or her to see your entire financial picture. Or it could be a commission grab, as they move your rollover into expensive products.
If you’d like to get another overall financial planning view before making such a move,
read this: https://www.terrysavage.com/pam-krueger-wealthramp/

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