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Hi from Dew
Old 05-30-2005, 06:52 AM   #1
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Hi from Dew

Hi everyone, I am Dew. I really like this forum and wish I had found it five years ago.

I was recently given my walking papers a few weeks back
from an oil company. I have 45 weeks of severance pay coming once I sign the "no sue" waiver. I am currently living on the six weeks of vacation pay I was given. I do not think DH and I have enough money to ER yet. So I am currently
looking for internal audit jobs.

I do need some advice. I have about $139,000 pension I need to move out of my company. I could roll it into my 401K (Fidelity), or easily roll it into a Fidelity IRA. I want to put it someplace to protect the value for the next 20 years. Do you have any suggestions on where to move it?

Any advice would be greatly appreciated.

Thanks,
DEW
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Re: Hi from Dew
Old 05-30-2005, 09:34 AM   #2
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Re: Hi from Dew

Dew, before you do anything with your 401(k) read through the Fund Alarm discussion board, its "Home" and the fund rankings.
http://www.fundalarm.com/wwwboard/wwwboard.html

Broaden your options to include Vanguard.

It may be worth your while to read the Forbes 2005 Investment Guide (very current) and take a look at Financial Engines.*

How to invest your retirement savings will be impacted by your timeframe and needs.* There is no one size fits all answer to your question.*

BEWARE OF FINANCIAL ADVISORS.* Few load funds are worth the freight, funds with exit fees are stealth load funds.*

You will find that some members on this forum are also active on Fund Alarm. Their thoughts are worthy of consideration. Nords is one that comes to mind at the moment, but there are others too.
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Re: Hi from Dew
Old 05-30-2005, 11:27 AM   #3
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Re: Hi from Dew

Quote:
Broaden your options to include Vanguard
Can't go wrong there...take them over Fidelity any day

Be more specific about 'protect' your money for the next 20 years. Age? Risk tolerance? Hard to reco anything with the info you provided.
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Re: Hi from Dew
Old 05-30-2005, 12:15 PM   #4
Confused about dryer sheets
 
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Re: Hi from Dew

Worked almost 23 years for this company, so major hurt
financially to have to leave before early corporate retirement
age.*

Here is more background information:

Age 45, same for DH.
Fidelity 401K, $220K
Current value of pension to roll: $139,000
* *If I left it in the company pension plan, it would grow
* *to $338,000 at age 65.
Taxable savings $52,000
Roth IRA about $11,000
Owe $63,00 on house, current value about $160K
Car is paid
Get about $71,000 severance, but will lose about 25% to taxes.
Own 12 acres valued at $60,000, loan $29,000.
DH 401k equivalent about $53,000
DH pays into Teacher Retirement System, so not sure what
amount of pension will receive in 6 years when retirement
eligible.* DH healthcare will be paid at retirement, and mine 50%.

I plan to use some money from severance and my savings to
pay off the house.

Based on the above financials, I feel I need to find another
job.

I would like the pension money to grow, but, with moderate risk.*

A lot of the 401K is invested in mutual funds with $40,000
in company stock.* Another $55,000 is in cash which I realize I should move to mutual funds to make it start working harder.

I looked at the FundAlarm.* I am glad to see none of my 401K mutual funds are in the 3-alarm list.

Any more suggestions on a home for my pension money?

Thanks,
DEW

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Re: Hi from Dew
Old 05-30-2005, 01:05 PM   #5
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Re: Hi from Dew

Quote:
Originally Posted by DEW
Fidelity 401K, $220K
Current value of pension to roll: $139,000
If I left it in the company pension plan, it would grow
to $338,000 at age 65.
Get about $71,000 severance, but will lose about 25% to taxes.
Any more suggestions on a home for my pension money?
DEW,

I am sorry that you have lost your position after so many years with a company. My wife lost her job last year after having had 23 years with the same company. She kept her 401K was with Fidelity. You might consider the same or roll it to Vanguard if you want to prefer more selection of index funds.

If you leave the pension as it is, your annualised return will be 4.5%. I think you can do better simply just roll it and the $71K serverance to a Vangurad balanced fund such as Wellesley Income, Wellington, Life Strategies or Target Retirement.

Good luck.
Spanky
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Re: Hi from Dew
Old 05-30-2005, 01:15 PM   #6
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Re: Hi from Dew

Don't use your severance & savings off the house just yet, you need a rainy-day fund.* IMHO put it in the highest interest insured savings account until you have been at your new job for a year.

Consider a highly rated balanced fund such as Oakmark Equity Income.
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