Ask Terry Questions Protecting nest egg for retiree

Protecting nest egg for retiree

By Terry Savage on November 25, 2018 | Chicken Money

I have $30K in 401K and I am retired. I read your article “Bull market can’t last forever”.
How can I protect this nest egg? Thanks.

Terry Says

Surely there is some “safe” investment inside your 40l(k) plan — a “stable value” fund (which is an insurance contract paying a fixed, low rate) or perhaps a money market fund.  You can make that switch instantly by contacting your plan provider.

But the real reason I suggest people roll over their 40l(k) accounts at retirement is to have a wider choice of conservative investments, or money market funds for safety.  You can do that by contacting Fidelity at 1-800-FIDELTY.  They will handle the rollover and tell them you want complete safety against loss at your stage of life –so put it in a money market mutual fund inside your IRA.

Do NOT take a check from your company.  Fidelity will handle the rollover so it does not generate a tax bill and the money can keep growing tax-deferred.



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