401k safe alternative
I have a 401(k) with my employer they are not matching anything anymore I have a CD with my bank and also a money market with my bank I would like to transfer my 401(k) to a CD or something that you suggest I called Fidelity where my 401(k) is and they said I had to call my employer I called my employer but I haven’t heard back what should I do when I do hear from my employer?
Terry Says
No, no, no!!!! You CANNOT transfer money out of your 40l(k) while you are still working there! At least not in the form of a withdrawal. And you don’t want to take a loan, because the interest you’d pay the plan is more than you can earn!
What you DO want to do is ask the plan custodian — FIDELITY — what is the safest place to put your money INSIDE the plan! There should be a money market mutual fund or a short-term — very short-term — government bond fund. If you’re over 55 move your money there. If younger, just move maybe 25% to safety, because before you retire the market should come back.
