Community Chat

[AnikaBrodie]

DH had a 401K and rolled it over to an IRA account upon retirement. We don't touch it; we've left it where it is. However, we have control over it if and when we need it. The market does fluctuate up and down as you already know but over the long term it has shown gains.

[RedTop]

My husband left a job 20 years ago and rolled his 401k into an IRA at our local bank. During the 12 years he worked there, the company changed hands 3x, so we just wanted to be sure we knew where our money was.

[Johnnyeager]

If you like the investment options where it is, no need to change, but it can be rolled tax free to another company as a rollover IRA which offers many options. I won't offer names, although this has been my profession for over 30 years. As mentioned, do not touch it before 59 1/2.

Depending upon your age, your asset allocation can be spread among cash (i.e. money market, CDs), bonds and bond funds for income, or various equities or equity funds for growth. You can change this asset allocation over time as you get older. Of course, the equities will be the most volatile, so reduce that option if you can't tolerate the fluctuations.

If you buy individual stocks and bonds, you will pay commissions within your IRA. All mutual funds charge fees, but that varies. You will pay a fee if you want someone to manage the choices for you, but if you are comfortable you can select investments yourself.

Good luck. I am managing my own retirement assets and it's actually a fun process.

[terrier3]

On 3/20/2015 AnikaBrodie said:

DH had a 401K and rolled it over to an IRA account upon retirement. We don't touch it; we've left it where it is. However, we have control over it if and when we need it. The market does fluctuate up and down as you already know but over the long term it has shown gains.

You will have to start withdrawing at 70 1/2 years old, I think.

[Johnnyeager]

On 3/20/2015 terrier3 said:

On 3/20/2015 AnikaBrodie said:

DH had a 401K and rolled it over to an IRA account upon retirement. We don't touch it; we've left it where it is. However, we have control over it if and when we need it. The market does fluctuate up and down as you already know but over the long term it has shown gains.

You will have to start withdrawing at 70 1/2 years old, I think.

Yes, you must start your Minimum Required Distribution during the year you turn 70.5, or major penalties will apply. If your IRA/401k is with a major company they will do all the calculations for you.

[deepwaterdotter]

On 3/20/2015 esmeraldagooch said:

My husband rolls it over to a Edward Jones account so he can select what he invests in.

This is what I did when I retired. I like the flexibility of choosing my own investments.

[hyacinth003]

Thanks for all your thoughtful answers.

Knowing how much we all lost already, preservation, at this point, is super important to us.

We've spent 25 years saving in it, and haven't had much time to make decisions.

If you put it in a CD or money market, my guess is you would have to pay the taxes first.

Transferring into another IRA would avoid taxes for now, is my understanding. Not sure yet if another IRA preserves, and/or if you can still make some interest.

I have not gotten to understanding annuities just yet!

It just FEELS (rightly or wrongly) that leaving it subjects it to market fluctuations, which makes me nervous at this point!

Hyacinth

[terrier3]

On 3/20/2015 hyacinth003 said:

Thanks for all your thoughtful answers.

Knowing how much we all lost already, preservation, at this point, is super important to us.

We've spent 25 years saving in it, and haven't had much time to make decisions.

If you put it in a CD or money market, my guess is you would have to pay the taxes first.

Transferring into another IRA would avoid taxes for now, is my understanding. Not sure yet if another IRA preserves, and/or if you can still make some interest.

I have not gotten to understanding annuities just yet!

It just FEELS (rightly or wrongly) that leaving it subjects it to market fluctuations, which makes me nervous at this point!

Hyacinth

After you roll it over into a personal IRA account, you can then choose what investments to make. Money market accounts are one choice....along with stocks, bonds, etc.

Don't worry about choosing funds and investing in equities, IMO.

My 401k is now in a personal IRA. I left it with my old company for almost a year...then set up the rollover last summer when stocks were at 1600. I put all the money in a SPYDR (mimics the stock market)...and in a few months, it was back up at 1800. At that point, I moved the original money into a Fidelity 2025 account (the investments are chosen based upon the expectation you will start withdrawing in 2025...they determine the percentages for stocks, bonds and cash accounts). The further out you choose (Ex.: 2035, the more aggressively they invest.)

I personally like Fidelity. I have had a Magellan account with them for many, many years and they manage my company's pension (a personal annuity) too.

You definitely DON'T want to do anything except roll in into an IRA at this point. The IRA will have lots of options, depending on what company you go with. There is no rush either...you can keep it where it is, although you cannot ADD to it or take a loan against it after your employment is terminated with the company. If it's in stocks now...you can still keep it there are adjust your investments based on your risk tolerance.

[Kalli]

This has been a very interesting thread to read. I have a TSA. I'm not real knowledgeable about any of this so thanks to those who've been sharing their info.

[Charming1]

I would seek the advice of a financial advisor to assess your personal situation and wants/needs and see what options are available to you.

When I retired I rolled my 401K over to an IRA with Fidelity. The company I worked for had emloyee 401k accounts with Fidelity and I stayed with them. I've had very good service with them over the years. I've always managed my own account w/their help. I don't know if the service is for everyone but I was able to get advice from them and meet face to face at a branch any number of times at no charge. I also could have had them manage my acct. for a fee. I'm not trying to sound like I'm recommending them, I'm not, I'm just sharing my experience. In fact I use an outside advisor now who helps manage all my accounts with Fidelity.

When I was preparing for retirement I inquired with a few financial companies and one place wanted to put all my money into an annuity. It had too many drawbacks for me and I stay away from annuities. He would have made a big commission. Also they may some have hefty fees such as surrender fees if you needed to cash it in. ETA: There's so many kinds, so if you might be interested pls. be sure you fully understand it.

At one point someone recommended Edward Jones to me but they seem to be more expensive to me compared to other companies but lots of people like using them.