Rollover from 401K to IRA (?) that you discussed this week.
Hi Terry, I watch you on WGN weekly and have asked a question or two to you in the past.
Thank you for your rapid response on those. This past week you mentioned a rollover from 401K to an IRA (?) I tried to look it up on your site but was unable to locate. My wife and I are 72 years young (married close to 50 years 10/5/75) and really don’t understand what to do with our 401K. We have not touched it since we started them (I have 4 and my wife has 3). When we had set them up, we went aggressive and never changed it and it was really affected recently.
What can we do? Can we consolidate them all into one or move them into something a little less volatile? We can really use your help here.
I thank you in advance and really appreciate your insight on this matter.
Terry Says
OK, we are talking about two separate things here.
First, here is the link to do a rollover into an IRA at Fidelity. Each of you will have to do a rollover for each of your accounts into your own IRA rollover account — ending up with just two separate IRA rollover accounts.
https://www.terrysavage.com/rollover-now/
That’s the first step — and you can do this on your own. Just understand that if you do it correctly, there will be no tax consequence. AND, all the money will be moved in CASH — you’ll just leave your old fund investments behind. SO, when you get to Fidelity, you can tell them to put it all in a money market fund — Fidelity Government Cash Reserves. It will be safe there, and you can decide later how to invest it.
Oh, and don’t forget to name each other as beneficiary for the accounts.
Step 2 is getting good trusted financial advice. Fidelity may offer that, BUT I would suggest you read this:
https://www.terrysavage.com/pam-krueger-wealthramp/
Let Pam connect you with one or two carefully chosen, fee-only FIDUCIARY advisors. They will help you not only invest the rollover money — but come up with an overall retirement income and spending plan, review your estate plan, discuss tax issues, etc.
Do all of this rollover NOW — because if you wait until you turn 73, you must first take a required minimum distribution (RMD) from EACH account!!
