Ask Terry Questions Investment of pension funds

Investment of pension funds

By Terry Savage on March 04, 2020 | Financial Planning / Retirement

I am going to receive $56,000 in pension funds and am still working at 59. What is the best way I can invest this money?

Terry Says

The first thing is NOT to take that money before you figure out if you are entitled to ROLL IT OVER on a tax-deferred basis. Otherwise you will pay taxes immediately! So be sure to ask questions of your company HR department. If they say you can do a rollover (and I’m quite sure this should be possible), then contact Fidelity at 1-800-FIDELITY and talk to a rollover specialist.
The first part is getting the money transferred DIRECTLY to Fidelity. They will handle that, talking to your current employer. The second part is choosing the investment WITHIN Fidelity for your money. Tell them you want it in the money market fund — Government Cash Reserves. Don’t do anything else with it for 6 months, and then write back to me!

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