Roll-over of Standard Employer Pension
Hi Terry. Been dragging my feet because I’m so nervous about how to mobilize a small standard pension. Im a retired (70.9 yr old)RN from Advocate Healthcare ( 5 yr position) from which I accumulated $31K. Mandated to move it by 04/01/23. Its my only nest egg except for 8K in simple savings (eeek :/ ), so I’m very nervous about fees associated with financial brokerage houses like Fidelity, Vanguard etc. Maybe these are the best options? or do you have a recommendation for a quality yet low fee place to house this money? I have little knowledge about finance and could benefit from some $ counseling for retirement questions ( i. e. planning for taxing issues etc with mandated disbursements coming up) thank you
Terry Says
You should absolutely do a rollover to Fidelity or Vanguard – -and just tell them to put all the money in a money market fund. It will lag inflation slightly, but you won’t lose a penny in principal. And you’ll sleep well at night. Having them help you do a direct rollover is the least expensive and safest way to handle this issue.
Then they will tell you how much you MUST withdraw each year, starting at age 72. They’ll do the calculations for you. And they will withhold taxes — likely 20%, but less if you tell them your total expected income for the year.
Have you taken Social Security yet? If not, you must do so this year.
There’s not much more financial planning you can do because now you know your budget.
