Retirement
I have my 401k with fidelity and I want to retire what should I do? I’m 59 and 7months and my husband is retired and we own our home.
Terry Says
Do you “like” the investments in your plan? Are there any that you could not replicate (special interest rate funds) if you rolled your account over to an IRA Rollover? Ask your company HR department about that.
Then I would contact Fidelity and ask they to do an IRA Rollover DIRECTLY from your 40l(k). Do not take a check, do not withdraw the money. Fidelity will handle it all for you to avoid tax consequences. Since you are over 59-1/2 there would be no withdrawal penalty — BUT why pay taxes now and lose all future growth on a tax-deferred basis if you just take the money out!
Then, you’ll have to pick some conservative mutual funds for your Rollover IRA. Start with their Equity-Income fund, and leave some in a money market fund so you can sleep through the ups and downs of the market until you start withdrawing — as late as possible, perhaps waiting until you’re 72, and need to take Required Minimum Withdrawals.
And, though you didn’t ask, is retirement wise now? Will you continue to earn money in some way? Odds say you’ll live at least another 30 years.
