401K when you leave a job - Page 3

terrier3 · ‎03-10-2010

On 3/20/2015 Charming1 said:
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 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 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.

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.

I agree with you that Fidelity is a very good, solid company. I stayed with them after I found out that using their IRA service was 1% LESS expensive than when they managed my company 401k!!! Companies must get some type of kickback from the fees...

My company pension is a Fidelity annuity. I'm happy about that because even if Time Warner Cable disappears...my annuity is personally in my name and can't go down with a bankruptcy or merger. To set up a personal annuity is VERY expensive. When I went through my class to get my health, life and disability broker license....I found out that the commission on annuities is higher than almost anything an insurance salesperson can sell you (they PUSH salespeople to sell annuities)...I would rather pay less to a salesperson and keep MORE money to invest on my own!

Charming1 · ‎05-09-2013

On 3/20/2015 terrier3 said:
On 3/20/2015 Charming1 said:
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 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 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.

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.

I agree with you that Fidelity is a very good, solid company. I stayed with them after I found out that using their IRA service was 1% LESS expensive than when they managed my company 401k!!! Companies must get some type of kickback from the fees...

My company pension is a Fidelity annuity. I'm happy about that because even if Time Warner Cable disappears...my annuity is personally in my name and can't go down with a bankruptcy or merger. To set up a personal annuity is VERY expensive. When I went through my class to get my health, life and disability broker license....I found out that the commission on annuities is higher than almost anything an insurance salesperson can sell you (they PUSH salespeople to sell annuities)...I would rather pay less to a salesperson and keep MORE money to invest on my own!

I agree w/you.

People kept telling me to manage my own money since I always had been. But since I was planning on retiring and had a couple other financial matters (not retirement related and temporary and new to me) I wanted to use someone for at least a couple of years to ensure I was going down the right path.

“There are things that we don't want to happen but have to accept, things we don't want to know but have to learn, and people we can't live without but have to let go.” Author Unknown

Kalli · ‎03-11-2010

On 3/20/2015 terrier3 said:
On 3/20/2015 Charming1 said:
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 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 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.

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.

I agree with you that Fidelity is a very good, solid company. I stayed with them after I found out that using their IRA service was 1% LESS expensive than when they managed my company 401k!!! Companies must get some type of kickback from the fees...

My company pension is a Fidelity annuity. I'm happy about that because even if Time Warner Cable disappears...my annuity is personally in my name and can't go down with a bankruptcy or merger. To set up a personal annuity is VERY expensive. When I went through my class to get my health, life and disability broker license....I found out that the commission on annuities is higher than almost anything an insurance salesperson can sell you (they PUSH salespeople to sell annuities)...I would rather pay less to a salesperson and keep MORE money to invest on my own!

Tough to argue with that kind of logic! I definitely agree. If you can make more money investing on your own, why wouldn't you?

millieshops · ‎03-09-2010

Whether or not you can take money from your 401K when you retire depends upon your age - has nothing to do if you're actually retiring.

Your age also affects what is the best advice to follow as to what you should do with the money. And what you do also depends upon what other money/savings you have, etc.

I wouldn't take much advice from anyone who doesn't know the right questions to ask as well as the answers to all those questions! After all, for many people that 401K represents major money, so be careful with it.

If you're going to roll the money into a different account (maybe an IRA), please let the new company guide you through the paperwork. You don't want to use dollars to taxes and penalties. Taxes you're going to pay at some time, but do avoid penalties.

Get advice and then get it again!

Charming1 · ‎05-09-2013

On 3/20/2015 millieshops said:
Whether or not you can take money from your 401K when you retire depends upon your age - has nothing to do if you're actually retiring.

Your age also affects what is the best advice to follow as to what you should do with the money. And what you do also depends upon what other money/savings you have, etc.

I wouldn't take much advice from anyone who doesn't know the right questions to ask as well as the answers to all those questions! After all, for many people that 401K represents major money, so be careful with it.

If you're going to roll the money into a different account (maybe an IRA), please let the new company guide you through the paperwork. You don't want to use dollars to taxes and penalties. Taxes you're going to pay at some time, but do avoid penalties.

Get advice and then get it again!

Totally agree!

“There are things that we don't want to happen but have to accept, things we don't want to know but have to learn, and people we can't live without but have to let go.” Author Unknown

dobiesrule · ‎07-24-2014

Hyacinth, regarding your comment about CD's and taxes, you can roll it over to a CD IRA. You won't pay taxes on it until you start taking distributions. A CD will certainly keep the money safe, but you won't be making much interest on it.

Lucky Charm · ‎03-09-2010

We rolled DH's 401K and (lump sum) pension into a plan that is totally out of the stock market.

It gained us 10% the first year for leaving it 'sit', but only about 1.45% since then.

We split it up into 4 different contracts and for every month after DH reaches 59.5 years old that we don't touch them, it increases 6%.

So we gained the most the first year and a pittance for now as DH hasn't reached 59.5 yet, and we hope to not have to touch it for as long as possible.

There are no fees involved, I guess because no one is investing it in the market.

We can do it again this summer if DH 'retires' from this company, and we'll take the lump sum and 401K and give that to our money man.

I just hope his company doesn't throw stupid amounts of money at him to get him to stay.

LeoGrl · ‎03-09-2010

On 3/20/2015 Kalli said:
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.

I agree...interesting thread. I had this same question like the OP regarding an old 401K that I left sitting. Now I know I have options I can consider. I'm embarrassed to say I'm totally clueless when it comes to financial issues like this.

winamac1 · ‎12-29-2010

On 3/20/2015 terrier3 said:
On 3/20/2015 Charming1 said:
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 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 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.

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.

I agree with you that Fidelity is a very good, solid company. I stayed with them after I found out that using their IRA service was 1% LESS expensive than when they managed my company 401k!!! Companies must get some type of kickback from the fees...

My company pension is a Fidelity annuity. I'm happy about that because even if Time Warner Cable disappears...my annuity is personally in my name and can't go down with a bankruptcy or merger. To set up a personal annuity is VERY expensive. When I went through my class to get my health, life and disability broker license....I found out that the commission on annuities is higher than almost anything an insurance salesperson can sell you (they PUSH salespeople to sell annuities)...I would rather pay less to a salesperson and keep MORE money to invest on my own!

My 401 K's were with Fidelity. When I left the Companies, my husband rolled them into Vanguard funds. The fees are far higher with Fidelity than they are with Vanguard. We also had more options. Fidelity is very stable, but their fees are higher.

"friends don't let friends drink white zinfandel"

terrier3 · ‎03-10-2010

On 3/20/2015 Lucky charm said:
We rolled DH's 401K and (lump sum) pension into a plan that is totally out of the stock market.

It gained us 10% the first year for leaving it 'sit', but only about 1.45% since then.

We split it up into 4 different contracts and for every month after DH reaches 59.5 years old that we don't touch them, it increases 6%.

So we gained the most the first year and a pittance for now as DH hasn't reached 59.5 yet, and we hope to not have to touch it for as long as possible.

There are no fees involved, I guess because no one is investing it in the market.

We can do it again this summer if DH 'retires' from this company, and we'll take the lump sum and 401K and give that to our money man.

I just hope his company doesn't throw stupid amounts of money at him to get him to stay.

Who is running this fund? Is it a private investor?