If you are no longer working, and officially retired, you will have to roll your 401(k) into an IRA. This IRA may be mutual funds, stocks, bonds, annuities, etc. I like to recommend Annuities which provide an Income Rider that will give you guaranteed income for life.
The other reason to move your monies into an Annuity (as an IRA), is to guarantee you will not loose any of the money you worked hard to earn. When you are retired, loosing 10% or more will affect your financial status, the monies you have available to retire with.
Talk to your advisor or broker.
Or you are welcome to reach out to me for more information.
Thank you.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
When you retire your former employer will send you a letter describing the options available with your 401(k) plan. Plans vary and so do options. As mentioned one of the frequently offered options is the privilege of rolling the account into a personal IRA. Since you would be gaining personal control of this asset this might be a very smart thing to do. If the employer allows you to keep the funds in his plan you should check to determine how much of the assets of the fund are invested in company stock. That could be a major consideration.
Some 401(k) plans offer flexible arrangements but most will want the money settled in a short time after you retire. Your financial advisor or retirement income certified professional can give you helpful information concerning the options presented. This money needs to be used in a wise manner as you could be retired for a very long time.
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The other reason to move your monies into an Annuity (as an IRA), is to guarantee you will not loose any of the money you worked hard to earn. When you are retired, loosing 10% or more will affect your financial status, the monies you have available to retire with.
Talk to your advisor or broker.
Or you are welcome to reach out to me for more information.
Thank you.
Some 401(k) plans offer flexible arrangements but most will want the money settled in a short time after you retire. Your financial advisor or retirement income certified professional can give you helpful information concerning the options presented. This money needs to be used in a wise manner as you could be retired for a very long time.