Moving % of 401K to Money Market
I hope to retire at the end of 2023. I’ve been fully employed with the same company for 35 years, and am entitled to social security and a pension. I have ~$700K left in my 401K managed by Merrill Lynch, after losing ~10% of the value in recent months, and am still contributing. I’m married and my husband has earned and saved more than I have. We have no major debt. If my health allows, I’d like to work part-time after retirement. Should I consider moving 50-75% of my 401K to a money market?
Terry Says
Well, that might be a bit of overkill. Maybe 35% would provide enough security for you to sleep well?
This is a perfect time to figure out an overall financial plan and income plan for your retirement. For example, although you’re entitled to Social Security, it might be smart to wait until age 70 to collect. Delaying taking benefits gives you an 8% larger check for every year you wait! And if you’re worried about the stock market, why give up an 8% guaranteed gain!
Consider a meeting with a FEE-ONLY FIDUCIARY financial planner, to get a better view of your overall situation. YOu can find one you trust at www.Wealthramp.com — use this link on my website to see how it works and why I recommend it.
I can’t give you more specific advice, because I don’t even know your age! Or your husband’s savings and benefits. Or your spending needs. But a meeting with a trusted financial planner can get you to the point of confidence that lets you remain invested in stocks — at least for a portion of your money — because stocks outperform inflation over the long run. And you likely do have at least a20-year “long run” if you haven’t retired yet — at least for some of your money!
