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Ready to Retire: What Should You Do With Your 401(k)?
Townhall.com ^ | August 22, 2012 | Carrie Schwab Pomerantz

Posted on 08/22/2012 5:36:22 AM PDT by Kaslin

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1 posted on 08/22/2012 5:36:27 AM PDT by Kaslin
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To: Kaslin

I’m going to cash in my 401(k) and buy a big dark-chocolate candy bar, if I have enough.


2 posted on 08/22/2012 5:37:49 AM PDT by Nervous Tick ("You can ignore reality, but you can't ignore the consequences of ignoring reality.")
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To: Kaslin

Take it out of the bank and hide it because confiscating 401(k) money will be the Libs next trick to fund their ever-expanding Welfare State. They have done it in other countries and the Dem mobsters here can’t resist getting their hands on a big pot of money by any means possible.


3 posted on 08/22/2012 5:38:22 AM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: Kaslin
Move it to Switzerland to get it out of the reach of an avaricious US government doesn't seem to be one of the options...
4 posted on 08/22/2012 5:39:12 AM PDT by Truth29
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To: Kaslin

Carrie did NOT answer the question!!!

WHAT do I invest in to SAFELY beat a 1.5% Return????

Bonds?
Stocks?
Gold?
Mutual Funds? Which ones?
Index Funds?


5 posted on 08/22/2012 5:44:13 AM PDT by G Larry (Progressives are Regressive because their objectives devolve to the lowest common denominator.)
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To: G Larry

Get a financial advisor you trust. When I retired two years ago, I rolled my pension and 401(k) into a couple different IRAs with Edward Jones. I could not be more pleased with the results. Even though I have drawn many thousands out, I still have more than I started with. How can you beat that?


6 posted on 08/22/2012 5:49:25 AM PDT by Past Your Eyes (You knew the job was dangerous when you took it.)
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To: Kaslin

Move to a state without a state income tax, then start withdrawing and paying the tax on it.

Expect to get screwed on SS for saving that money.


7 posted on 08/22/2012 5:51:18 AM PDT by sickoflibs (Romney is still a liberal. Just watch him. (Obama-ney Care ))
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To: Past Your Eyes

Exactly!

I was actually pointing out that the real question being asked, had not been answered.


8 posted on 08/22/2012 5:56:46 AM PDT by G Larry (Progressives are Regressive because their objectives devolve to the lowest common denominator.)
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To: Past Your Eyes
Get a financial advisor you trust.

As a broker, I concur.

Since I sit a Bloomberg machine, I trade fixed income products for a living. I am only 40 but half of my portfolio is municipal bonds I buy on dips, or idiotic panic by the likes of Meredith Whitney. There are 2mm muni bond issues out there, 42,000 issuers....about 500 are distressed or defaulting.

Anyways, I do this for a living and can only say that she should consult three (3) people: 1) A CPA, 2) an estate attorney versed in revocable trusts and able to defend them in court, and 3) a TRUSTED financial advisor.

If your broker wants to put you in annuities and mutual funds, he/she is out for an 6-9% commission. Go fee based or find someone that will be honest with you about low commission investments such as individual stocks, ETFs, and taxable and non-taxable bonds.

Also, all this advice depends on your objectives, suitability, age, dependents, medical situation, etc.

Now go find those 3 people and take them to lunch!

9 posted on 08/22/2012 6:06:29 AM PDT by DCBryan1 (I'll take over the Mormon over the Moron any day!)
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To: Kaslin

I rolled mine into a Roth IRA and put it in DBS.


10 posted on 08/22/2012 6:08:50 AM PDT by chopperman
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To: G Larry
WHAT do I invest in to SAFELY beat a 1.5% Return????
There is no "safe" investment anymore ... not that really ever was one other than a fixed rate account.
Nevertheless, I'd recommend looking at two funds from Vanguard: VWELX and VWINX.
11 posted on 08/22/2012 6:08:53 AM PDT by oh8eleven (RVN '67-'68)
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To: Nervous Tick

Since TARP and Obama in 2008/9 until now, I have lost over 50%. The only way I’ve found to stay intact with my 4 option plan from my employer is to have about half of it in bonds. It either loses at a much slower rate or gains a bit now and then, but that intial hit was devastating.


12 posted on 08/22/2012 6:10:47 AM PDT by xzins (Retired Army Chaplain and Proud of It! True supporters of our troops pray for their victory!)
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To: G Larry
WHAT do I invest in to SAFELY beat a 1.5% Return????

"Safety" is a relative term. You could keep your money locked in a fire-proof vault in your basement, and it might be physically safe. But it won't have a chance to grow at all, so it's value will diminish through inflation over time.

If you look at the historic returns on gold, they have a steady growth. There have been many breath-taking increases along the way, as well as gut-wrenching drops. In the end, it will just depend on when you get in, and when you get out. Gold doesn't pay dividends, so you generally only make money through capital appreciation; i.e., you sell for a higher price than what you bought.

All the other options have the potential for growth, and many options pay dividends, allowing income without touching principal. It just depends on how much you invest, as to whether or not that income is enough to live on.

There are many ways to beat a 1.5% return, bonds, funds, and stocks. There are dividend-paying ETFs that have small fees, and yield 3-5% or higher. The question is, what's happening to your principal, and is there a chance you could lose a significant amount of your original investment?

13 posted on 08/22/2012 6:10:47 AM PDT by Lou L (Health "insurance" is NOT the same as health "care")
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To: oh8eleven

Hope yer correct as I will continue to hold and rebal yearly all $$ xcept for emerg $ as follows;

20% VWINX 70 VTINX and 10% VBILX

I feel its pretty simple and come RMD time(10 yrs) the IRA stuff will go into the current non qualified VTINX or under the mattress.I dont pay Chuck Schwab or Ray James, I keep those fees for me and as my brain goes(the 60’s) it will still be manageable.
As you obviously know common wisdom sez you dont need 15 funds when 1,2,3 will do the trick.


14 posted on 08/22/2012 6:39:24 AM PDT by CGASMIA68 (If your not confused about life you aint been pay'en attention)
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To: Kaslin
The answer depends on one's risk aversion. There are no guarantees when it comes to investing. Investing is essentially a gamble. The professionals, which I am not, tell us that there are strategies that may affect risk. Here are a few investment examples.

Virtually zero risk: CDs, Cash, Inflation protected Treasury bonds purchased directly from the US Treasury.

Low risk: 30% stock index fund, 40% Intermediate-term bond index fund, 30% short-term bond index fund.

Higher risk: 50% stock index fund, 25% Long-term bond index fund, 25% Intermediate-term bond index fund, 20% sector funds or individual stocks.

Remember that TAX avoidance should be part of your strategy. Deferred or no tax is a good thing. Investment "expenses" ($ paid to brokerage or manager) are another important consideration. What is the expense ratio for the funds, stocks that you're holding. "Indexed" funds are known for low expenses.

If in doubt, spend a few hundred dollars on an "independent" certified financial adviser. The adviser you hire should have "zero" interest in selling or representing any investment instruments/companies. I.e., they should be agnostic when it comes to investment instruments/companies.

Hopefully this info was helpful.

15 posted on 08/22/2012 6:41:05 AM PDT by JesusIsLord
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To: Nervous Tick

Take a look at www.modern-woodmen.org . They have a fixed rate annuity IRA with no fees; a guaranteed minimum rate of return (paying a current rate higher than their guaranteed minimum); a guarantee that you can’t lose your principal if you cash it in, move or surrender it; you can withdraw 10% a year with no loss of interest during the 8 year surrender charge period (most of us are unlikely to withdraw more than that percentage in the immediate years following our retirement); in short, it’s a safe place to park retirement money where it will grow slowly over the years. Not for everyone, but fine for our conservative family. They are a not for profit fraternal society that’s been in business since 1883.


16 posted on 08/22/2012 6:43:38 AM PDT by Tudorfly
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To: t1b8zs
common wisdom sez you dont need 15 funds when 1,2,3 will do the trick.
Good Vanguard discussions on Morningstar.
There are quite a few posters who are also big proponents of the "1, 2 or 3" philosophy.
17 posted on 08/22/2012 6:51:43 AM PDT by oh8eleven (RVN '67-'68)
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To: G Larry

Ammo would be a good investment. Lead seems to be increasing in value everyday that BHO is President.


18 posted on 08/22/2012 6:54:25 AM PDT by ncfool (OMG 2012)
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To: oh8eleven

I used M* XRay when I was figuring up my mix,made it pretty easy.
I have learned a lot there in the last 10yrs...
Others should go a browse but be carefull you’ll need your TMI filters “On”.


19 posted on 08/22/2012 7:01:06 AM PDT by CGASMIA68 (Those that tell dont know,those that know dont tell)
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To: G Larry

7.62-54
7.62-51
7.62-39
30-06
5.56
9mm
45ACP

And the weapons to shoot them from.

I am not being factious. Over the last 5 years each and every one of those cartridges if bought from military surplus in bulk has increased in value more than 100%.


20 posted on 08/22/2012 7:13:49 AM PDT by cpdiii (Deckhand, Roughneck, Mud Man, Geologist, Pilot, Pharmacist. THE CONSTITUTION IS WORTH DYING FOR!)
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