Ask Terry Questions Traditional IRA

Traditional IRA

By Terry Savage on May 16, 2024 |

Hi, I’m 77 yrs old & I just read your column in the Hartford Courant (CT) regarding rollovers. I retired with a Vanguard 401k. I’ve been trying to get monthly payments for over a month now. The people I talk to do not speak English well and were giving conflicting information. A Vanguard Rep contact me 5/10/24 and suggested I “rollover” my 401k to a Traditional IRA as it would be easier to withdraw monthly payments. Apparently, this was done over the weekend. I went into my account and it said “zero” balance. He is suppose to call back this week ti set up payments. I’m nauseous after reading your column. The Rep did not mention Fiduciary, fee’s, commission, etc. I thought he was helping me so I don’t rollover my savings to another company. Should I find a financial advisor to help me out? I don’t know where to go next. I hope I did not loose my retirement. Please help. Thank you

Terry Says

Relax.  You’re with Vanguard — and this was the correct move!  By this time you should have already rolled over. To understand that advice, read this column:  Rollover Now – Terry Savage

Now, you have to do three things:

  1.  Tell them (at Vanguard — 1-800-Vanguard) that you want 75% of your money in their government money market fund.  And tell them you want the remaining 25% invested in their Equity-Income Fund.
  2. Tell them how much you want sent to you out of the Money Market fund each month.  They will ask for your checking account information.
  3. Ask them to calculate your Required Minimum Distribution for this year — and just make sure that  your monthly withdrawals cover that amount.

Now, you have nothing more to worry about!

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