Bonus Money
Hi Terry,
I’m 64 yrs old, recently divorced, with about 80k in my 401k plan. I’ve started a new job that includes a monthly bonus that can range from 8k to 15k. No debt besides a mortgage. What is the best way to handle this money? 401k? Or a “safer” savings acct (like Marcus)? Thx!
Terry Says
Gosh, you need an overall financial plan. I can give you some suggestions for “extra” money. Yes, you should definitely have safe,liquid savings such as Treasury Bills. Read this article: https://www.terrysavage.com/t-bills-beat-cds/
And you should also contribute to your new employer’s 40l(k) plan if one is offered — or set up a Roth IRA at Fidelity or Vanguard.
But have you made a new estate plan (leaving assets to children,and not your ex)?
Have you changed the beneficiary on your old 40l(k) and considered rolling it over? Read this: https://www.terrysavage.com/rollover-no
Have you thought about purchasing long-term care insurance for you (presumably single) older years?
I suggest a meeting with a FIDUCIARY fee-only financial planner to help you go over all these issues. Find one at Wealthramp. Read this explanation on my website.
You’re in a good position now to set aside as much money as possible and cover all your bases — and enjoy your new life!
