Ask Terry Questions Moving our 40l(k) to CDs

Moving our 40l(k) to CDs

By Terry Savage on August 06, 2023 | Financial Planning / Retirement

Hi terry, We have about $500,000 invested in the market ,and have $650,000 in an old 401-k that we want to put in an CD. Do we have to roll over the401-k? Would we have to buy4 CDs. We’re both in are60s. I’m retired and my wife works. Thanks

Terry Says

WAIT! You should first do a rollover of your 40l(k) to an IRA at Fidelity or Vanguard.
Read this:

Follow instructions and do the rollover directly. Do NOT get a financial advisor, do NOT take a check — just let either Fidelity or Vanguard do the rollover directly from your 40l(k). That way you will incur NO taxes or penalties.

When they ask where you want the money to “go” once it gets there, just say you want a government-only Money Market fund.

That will give you time to think about asset allocation — including your other investments. This might be a good time to have a few sessions with a FEE-ONLY Fiduciary financial planner who is not trying to sell you something, but can help you make a retirement spending and income plan.
Find one by reading this article.



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