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Discussion Starter · #1 ·
say your ready to retire and you have a 401k. Do you leave it alone, move the money to the bond type fund? move the money to a annuity type company? jim0
 
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Mine currently are in short term CD's. You have to watch your withdrawal rate depending on your age for tax purposes.
 
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Moved mine over to Ed Jones & let them do whatever.
 

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There are some legal advantages (protections from lawsuits, etc) that you can keep by leaving it as a 401k that you don’t get in an IRA or other investments (just one example of where leaving it there can be beneficial.)

Moving it to an IRA gives you more flexibility of investment choices.
 

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Not at retirement yet, but I am going to leave some as it is so it continues to grow in my retirement years. No need to change everything at once.

Now… let’s let Gene tell us what is preferred?
 

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At 70 and a half years of age, it must be taken out at your actuarial rate to eventually deplete it regardless of whether you are still working or not. But that does not mean you must spend it. I'd stash it all in a safe, low risk bond fund at that age or a mix of equities and bonds at a younger age. Or just let it ride before age 70.5 if it is performing well in a low fee fund.

Rick
 

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There is some good advice above, Jim....and some not-quite-true statements.
Best advice that I can give is to find a good CPA or CFP near where you live and seek his or her advice.
Every Employer Plan is different....but you will likely have to move the money to an IRA at some point if you no longer actively work for your Employer. You'll want to do something known as a Direct Rollover when that happens, to keep that transfer tax free.
Once you hit a certain age, you'll need to take RMDs (Required Minimum Distributions) out of the IRA. These will likely be taxable and should probably have Fed and State tax withheld from the distribution. Some States will NOT tax these distributions. Most do.
You'll probably want to consolidate all REGULAR/TRADITIONAL IRA money at some point into one account to keep the record keeping to a minimum.
Also, you should probably check who you have listed as Beneficiaries on your IRA, especially if your spouse has died, you got divorced, or have had other deaths in the family. (The same can be said for Life Insurance.)
RMDs aside, you'll need to figure out how/where to invest your money going forward. Typically, one gets more conservative as one gets older when it comes to investment risk and asset allocation. (Not a political statement.)
Happy to let you pick my CPA brain some time if you like. PM if you want. Everything I discuss is personal and confidential....unless you give me Jennifer Anniston's phone number.
Congrats on reaching retirement. You likely earned it!
-Tony, CPA in Ohio
 

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Before I retired I mostly managed it myself at Fidelity. However we aren’t in Kansas anymore and the stock market is much more difficult to time and invest with smarts. I moved mine to Edward Jones to let the experts handle it this last year and it performed extremely well. Many other full service investment service are also viable and successful. Just remember to stay ahead of inflation.
 

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say your ready to retire and you have a 401k. Do you leave it alone, move the money to the bond type fund? move the money to a annuity type company? jim0
I don't know as I do not have a 401K but the wife does. I will sure help her spend it, lol. Look for things that are going to be hot commodities like the solar and electric stuff IE: cars, housing is not going down at all and precious metals are always a good bet.
 

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Car parts, sir. Spend it all on car parts.
 

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My friend's parents just handed over their entire 401k to an assisted living development. Something like $750k he told me. 😬

Apparently this covers rent and care for both of them for the rest of their lives. They are then paid some small stipend for food, entertainment, etc.

I'd hate to do that. I'd sure like to have enough money to not only have enough to fund my retirement, but leave my daughter something as well.
 

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You guys had me worried I'm 70 and 8 months old and haven't touched any 401k or IRA money. I thought the age changed recently. This is from an IRS site.
The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) became law on December 20, 2019. The Secure Act made major changes to the RMD rules. If you reached the age of 70½ in 2019 the prior rule applies, and you must take your first RMD by April 1, 2020. If you reach age 70 ½ in 2020 or later you must take your first RMD by April 1 of the year after you reach 72.
 

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You guys had me worried I'm 70 and 8 months old and haven't touched any 401k or IRA money. I thought the age changed recently. This is from an IRS site.
The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) became law on December 20, 2019. The Secure Act made major changes to the RMD rules. If you reached the age of 70½ in 2019 the prior rule applies, and you must take your first RMD by April 1, 2020. If you reach age 70 ½ in 2020 or later you must take your first RMD by April 1 of the year after you reach 72.
Of course, this is assuming that the government doesn't decide to raid all the accounts to cover their (our) stupid insane debt.... at least I'll always know HKalin is 4 months older than me.... that is a relief! Lol!
 

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Discussion Starter · #19 ·
we haven't retired yet ( I'm 58, wifes 57). if the good lords willing, we will hopefully be ready (ready now) in 3 or 4 years. I listen to the talk radio shows Sunday mornings run by Greenberg financial, trasion wealth, win3 realty etc. And it just got me thinking about retirement and what to do. We do have to get together with a cfp just to wrap our minds around what we are going to be looking at. jim
 

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we haven't retired yet ( I'm 58, wifes 57). if the good lords willing, we will hopefully be ready (ready now) in 3 or 4 years. I listen to the talk radio shows Sunday mornings run by Greenberg financial, trasion wealth, win3 realty etc. And it just got me thinking about retirement and what to do. We do have to get together with a cfp just to wrap our minds around what we are going to be looking at. jim
It's always good to plan ahead.
 
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