Ask Terry Questions Shifting 401k funds to a financial planner

Shifting 401k funds to a financial planner

By Terry Savage on March 09, 2020 | Investments

I’m approaching 40 years with my company and have saved over 1 million dollars in my 401k. My company has Vanguard and I’m in the Vanguard Retirement 2021 plan. I’ve been in this plan for many years. I’m hoping to retire in the next couple of years.

My wife and I met with a well known and respected financial adviser in the area. The adviser recommends I shift my 401k money to them. Their proposed portfolio for me includes Vanguard funds as well but their main pitch is that my money will be “actively” managed. After all these years saving this money in the company plan I’m reluctant to shift but don’t want to miss an opportunity to preserve and/or grow my savings. What are your thoughts? Please let me know. Thank you

Terry Says

I think the best way to “preserve” your savings is to leave it where it is — and since you’re so close to retirement, shift maybe 20 percent to a money market fund inside your retirement account.



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