Ask Terry Questions employeer 403b is closing and I can roll it over to employer sponsored 401k or an IRA

employeer 403b is closing and I can roll it over to employer sponsored 401k or an IRA

By Terry Savage on August 05, 2018 | Investments

My employer is closing a 403b from a company that has merged . I have approx 200,000. in the plan the option is I can roll the money over to 401k Fidilety account which I already have or open an IRA . I am currently enrolled Vanguard Target Retirement 2030 Trust Plus.
Would it be a better option to just roll it over to the current Vangaurd? or IRA?
What type of investment portfolio would you recommend ?

Terry Says

I would suggest rolling it over into a new IRA Rollover account, separate from the other. It could be done at Fidelity, but for just the ease of recognizing the account, maybe you’ll want to open it at Vanguard, or T. Rowe Price. They will handle all the paperwork for you if you give them the info.
The reason for doing this is that you’ll have a wider choice of investments, and as you near retirement age that’s important. The Target retirement fund allocation for 2030 is heavily weighted to stocks. So when you choose new funds for the rollover account, you might want to make some more conservative choices — an equity-income fund, or even leave some in a money market fund, so that when the market crashes — as it will certainly do sometime in the next 10 year before you retire, you will sleep better at night!

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