Profit Sharing
Hi Terry, I have $36K in a profit sharing fund from an employer years ago. I turned 65 in September and wanted to know what is the best place to place this amount? IRA? CD? Money Market? Please advise. Thank you and I love watching you on WGN!
Terry Says
First of all, you need to understand how that plan works. Does it give you the option to ROLL the money directly into an IRA? If so, you don’t have to worry about taxes. But if that’s not an option, a good hunk will go to ordinary income taxes — and might even increase your Medicare premiums next year!
If you can roll it into an IRA, at a place like Fidelity or Vanguard, your investment choices depend on what other investments you have, your risk tolerance, and your eventual need for the money. For that, I highly recommend you get an independent, fee-only, fiduciary advisor.
Here’s how to find one: https://www.terrysavage.com/pam-krueger-wealthramp/
