Ask Terry Questions retiring in april 30 41 yrs with company

retiring in april 30 41 yrs with company

By Terry Savage on January 17, 2015 | Financial Planning / Retirement

i am 62 i have as of now my lump sum i am taking to invest i see you dont like annuities too much for investments .my question is i have over 4 hundred thousand to invest,any suggestions for investing.? any ideas would be helpful .

Terry Says:  Well, you have a wonderful problem!  And I’m not minimizing it.  There are lots of salespeople out there who would be delighted to earn commissions helping you manage this issue!

I can’t give you specific advice because there is a lot more I would need to know about your financial situation, and your personal situation — things far beyond investment advice.  For example, there is the amount of money you need to live on each month, and when you are going to take Social Security (see a nearby response to someone who wants to take SS at age 62 — a very BAD idea).   Far better to find part-time work to cover your basic living expenses until you reach SS full retirement age.  And do you have any debts, mortgage outstanding.  And an advisor would need to know your family situation, whether you have a dependent spouse, and how/where you plan to live as you age.

All of those questions go into setting up the plan for how to manage this rollover.  But FIRST, DON’T TAKE A LUMP SUM!!  Don’t take the money until you have a plan.  It will be done as a ROLLOVER — so you can defer taxes, and let the money continue to grow.

And I agree that you should not put it in an annuity (except maybe for a small portion) because that would be too inflexible — and if you have heirs might keep them from getting the remaining money should you die earlier than expected.

Now, I can point you in two directions for planning advice.  First, I don’t know where you live, but you can search for a fee-only planner near you (one who does not want to sell you anything ) at  The first meeting should be free.  And if you feel uncomfortable, just walk away. Trust your instincts!

Also several of the mutual fund companies give financial planning advice along with investment advice.  Try T. Rowe Price and Fidelity for starters.  You can ask all the questions you want — BEFORE you make any decisions about where to move the money.

Ask the company from which you are retiring if there is a ‘deadline’ for making a decision or moving the money.  They likely have retirement counseling.   Don’t be rushed into anything.  You can probably leave it conservatively invested in the company retirement plan (40l(k), while making this decision. But if there is some urgent need to make a decision then you can go to a major bank and do a ROLLOVER into a money market deposit account.  (They, too, will try to sell you on their retirement services!)

But don’t be rushed into anything. This pot of gold is a once in a lifetime opportunity to get it right!  Please write back if you have further questions.

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