401K
Hello Terry,
I enjoy your segments on WGN,
My question is, I have a 401K Plan with Vanguard, when I retire should I move that fund to an IRA or leave it with Vanguard?
When a dear friend of ours retired he told us to get the money out of Vanguard immediately!
He was very adamant about it so I’m asking you.
I live in Florida so state tax is not an issue.
Terry Says
I cannot think of any possible reason to leave Vanguard. It’s one of my recommended places for IRA rollovers, because the funds are the least costly and the service is excellent.
I think your friend is making a mistake, or maybe he used an investment advisor who placed funds at Vanguard, but charged high fees or gave bad advice. But that’s HIS problem — not a Vanguard problem.
What you SHOULD do is a rollover from your 40lk plan directly into an IRA, so y ou’ll have a wider choice of investments more conservative and suitable for a retiree. Read this article:
https://www.terrysavage.com/rollover-now/
