Ask Terry Questions Adding to 401k?

Adding to 401k?

By Terry Savage on September 29, 2013 | Financial Planning / Retirement

HI, I have money in my savings account that I need to do something with – I had previously sent money to an account that was returned as they are paying too much interest and will not take more deposits so I don’t know what to do to increase my savings. I started taking my pension when I turned 55 -receiving 1/2 of what I would get at 65 from an account that closed when my hospital was sold.

Work is closing our Great-West money market fund effective 9/18 and mapping it to a guaranteed fund and will be paying 3.5% interest. Does it make sense that I increase what I am giving to my 401K? I am 64 years old and plan on working at least 2 more years if all goes well.

Thanks for any advice you can give me. I don’t know if opening some type of IRA would make sense at my age.

Thanks again.   Sharon

SAVAGE SAYS:Well, the first thing I want to say is congratulations!  It sounds like you are doing a great job of saving.  Now you need some overall perspective and I would recommend a certified financial planner to take a look at both your before-tax and after tax saving so you can make an appropriate decision.  It’s not always a bad idea to have money outside your plan in savings — but that depends on your entire picture.

You gave me your address in Chicago, but I don’t have your email on this post, so will you send me an email, to, and I will respond with a couple of names I trust in the Chicago area.


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