401K no match
Hello I’m currently age 61 I hope to retire at my full retirement age of 67. I have a 401K at a company I no longer work for so I am not contributing any more to this 401K the rate of return is approx 13% this year. My current company SpaceX doesn’t match 401K but has a 401K program. I am currently investing 15% of my check into SpaceX stock as an employee I get a 15% discount. My question is what should I do with the old 401K — leave it at there or roll over to SpaceX 401K? If I roll it over should I contribute even though they don’t match? Side note as of last year I started contributing to a traditional IRA $7,000 max. allowed.
Terry Says
I don’t usually publish personal details, but you’ve had an interesting career. Neat that you now work for SpaceX — and sad that they don’t match, although you do get a discount.
I’d suggest either leaving your old 40l(k) at your former company — or doing a direct rollover to Fidelity or Vanguard (call and let them handle it, so no tax consequences). The main reason to move is that a company 40l(k) plan typically has investment choices that are more aggressive and geared to younger workers. If you roll over into an IRA, you can make some more conservative choices to balance out your over-reliance on your current employer’s stock.
I wouldn’t put all your retirement eggs in one basket — or one space rocket!!
