SAR/SEP

By Terry Savage on August 06, 2018 | Investments

I am currently unemployed after 25 years and have money in my SAR/SEP savings plan. I am single, no mortgage (renting) no children, 58-1/2 years young. I am actively looking for employment, but was wondering what to do with retirement savings. I know not to request a check, and to roll-over. Should I put into CDs to protect my investment once the market corrects itself?

Terry Says

Well, first there is no rush — unless your employer places a deadline on the removal of funds. Second, you will be doing a direct custodian-to-custodian rollover.

I dont know how your money is invested now, but this is certainly a good time to become more conservative. We are nearing the end — but who knows WHEN — of what is close to becoming the longest bull market on record! At your age,and stage in life, it is wise to become more conservative in your investments. But you still need stock market growth because you need to keep up with inevitable inflation.

So I suggest you contact Fidelty (800-FIDELITY) about a rollover. You can put it all into a money market fund for starters, and then think carefully about other potential investments for a portion of your money. Fidelity just launched two NO-FEE mutual funds that might be a perfect fit for a portion of your money, or consider their equity-income fund.

So take this in two steps. First complete the direct rollover. Put it all in a money market fund. Then wait at least a month before making an investment decision.

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