401(k) and ROTH IRA
Terry I have almost 1 million dollars in a Vangaurd 401 which was started in the mid 90’s, and I have a Roth IRA with Fidelity with $200,000 in it. Would it be best to move the Vangaurd money to the Fidelity? I am 63 years old and been retired for 6 years now. I am collecting $2000 a month in social security. Should I move the Vanguard account into a Roth IRA, if so how do I accomplish that?
Terry Says
Well, these are a lot of different questions.
First, if you still have money in your former employer’s 40l(k) plan and you are retired, you might consider doing a DIRECT ROLLOVER to an IRA — still at Vanguard. Then you’ll have a wider choice of investments, including some more conservative money market options if you’re concerned about the market. You’ll have to make investment decisions for your new IRA rollover.
You probably don’t want to do a Roth conversion, because you need to pay taxes now– with money held OUTSIDE the IRA to make that a sensible move.
It looks like you are nicely balanced between pre-and after-tax investments with the Roth. But I would suggest that this is the time to get a professional FIDUCIARY financial advisor to take a look at your entire financial picture. Find a FIDUCIARY FEE-ONLY planner who is not trying to sell you something at Wealthramp.com
