Ask Terry Questions Convert my 401 and my wifes 403 to cash

Convert my 401 and my wifes 403 to cash

By Terry Savage on September 05, 2023 | Investments

Hi Terry,
I would like your opinion I am considering converting my 401(k) and my wifes403, which is approximately 1.4 million into cash and hopefully receive 4% to 5% interest . If the stock market goes down. I can buy back in after it starts to go up not that I predict the future.

Terry Says

That’s a pretty drastic move — and the answer depends on your ages, and your entire financial position.
The easiest, and shortest, answer would be to move HALF to cash INSIDE your plan. That means your plan must offer a short-term money market alternative inside the plan.

If you’re already retired, then this is the time to do a direct rollover to a plan that offers safer alternatives. Read this:

But if you’re both still working, and you have at least a 20 year time horizon, you do need a long term conservative position in a diversified stock portfolio, easiest done in an S&P 500 stock index fund.



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