Hi Jim, I retired a year ago and rolled over my 401k to a self directed IRA with Edward Jones. My wife just retired from Edward Jones on April 30th after 19 years. The financial advisor has me in good, quality dividend paying stocks, mutual funds and ETF’s, my rate of return is 23.97%. I recommend an Edward Jones financial advisor after seeing a gain of almost $160k in the last year. The rate of return far outweighs the commissions charged. Now lets all buy more Chevelles!
Open a regular contributory IRA if you don't already have one and then do a rollover into it. Make sure it goes from the 401 (k) to the IRA ONLY! If you have the check sent to you, you will owe income tax on the entire amount plus a 10% penalty if you are younger than 59 and a half.
My father before he passed had all of his portfolio in DRIP’s. He also had real estate and did well on both over his years of retirement.You can build a good retirement portfolio with carefully selected dividend paying stocks. The stocks can grow in value so they at least keep up with inflation and the dividends are good passive income.
regulators like to encourage you to leave it in the 401k but you likely have few investment options. You don't want to pull it out right away or you will have high tax consequences. If you are not sure, you need to see a professional, honest and independent investment / financial planner so he or she can gather information about your goals, needs, and other financial assets/ liabilities. Then a strategy can be developed to move the assets to an IRA (s) to give you more options, conservator, aggressive or anywhere in between. If you don't want to work with a professional (a do it yourself person), then at least move the funds to a separate IRA company like T Rowe Price or similar with a number of investment choices and use a 60% (equity) and 40% (bond or similar) allocation to start to see how it goes for awhile. Good luck and congratulations on your retirement.
unless you started IRA withdrawals at 70.5 before recent tax law changes, the RMD start age is now 72 and they want to make it 75.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.
wow That would be a taxable event. Yikes. The tax will eat up about 25% of it.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.