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401k and retirement advice

By Terry Savage on October 18, 2020 | Financial Planning / Retirement

I have approximately 300,000 in a 401 with my current employer. I will be 67 in December and not sure how much longer I will work. I will not be taking SS until 70. I am conservative in my investments and have been averaging 5.5% over the past 5 years. What are your thoughts on transferring the funds into a traditional IRA 7 year annunity paying no less than 3.5%?

Terry Says

That is the most horrible idea I have seen this week!! Please don’t do that. You will make some annuity salesman rich!!

You need to do a direct ROLLOVER to an IRA — either Fidelity or Vanguard can do that. Then you needto make some conservative investment choices –a balanced fund, an equity-income fund, and perhaps a bit in a gold shares fund.
If you can’t do it yourself, don’t fall into the hands of a salesperson who only has his or her best interests at heart. There is a link in one of the little blue boxes,top right corner of my website, to Wealthramp — the matching service for FEE-ONLY, FIDUCIARY financial planners. You can trust them. This is the time to have at least one free overview meeting.



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