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What should I do with my 401(k) account after retirement?

Two years ago when I turned 59.5 years old, I rolled over a portion of my 401(k) to an IRA account. I recently retired and my remaining 401(k) account has gained favorably compared to my rollover account. I don't plan to tap in to either account yet until a year later. Should I leave my 401(k) account and roll it over later then? Or are there any better options to invest? It is valued at $220,000.

Financial Planning, Retirement, Investing, 401(k), IRAs
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March 2019

Hello,

A very interesting comparison! Investment choices in a 401k are usually limited, but they’re cheap.  Size does matter.  The bigger the employer, the more negotiation power, the more robust investment line-up, and the less expense for the 401k.  Once coming out of the 401k, you will have unlimited investment choices.  However, more choices do not translate a better return.  So, you need to compare the investments you have from the 401k to the rollover IRA to see what the problem may be.  If you’re unsure, seek a second opinion from an expert who charges an hourly fee to help you figure out the difference.  All being equal (both in a tax-deferred account), was the underlying investment cost or the asset allocation design caused one to underperform the other?  Then, go from there. Best!

March 2019
March 2019
March 2019
March 2019