/ Ask Terry Questions / Moving 401K Funds

Moving 401K Funds

By Terry Savage on September 14, 2020 | Investments

my company automatically put my 401k (< $5,000)in a fund I didn't know when they filed bankruptcy. now I'm 65 not working but looking for another job. I want to move the money to a fund I recognize like Fidelity or Vanguard but can I do that with no negative consequences? and how do I do that? I'm not savvy and don't have a lot of money so what I have I need to protect.

Terry Says

Yes, that’s easy to do — but it must be done correctly. With your paperwork in hand, call either 1-800-VANGUARD or 1-800- FIDELITY. You want to speak to a 40l(k) ROLLOVER SPECIALIST.
When you get to that department (and you have to go through a whole rigamarole to get there but keep at it!) then you explain exactly what you want to do: An IRA Rollover, DIRECTLY to them. They will contact the previous plan and handle it. Then you will have to choose a fund or funds to invest in. I suggest maybe half in their “equity/income” fund and 30% in the S&P 500 stock fund (for long-term growth) and 20% in a money market fund.



a personal
finance question