Hi to everyone. I retired last Fall just prior to age 58 and my wife will be retiring at the end of the month 5 months short of 58. I have a pension that more than covers monthly expenses, we have a savings account that could cover living expenses for 2 years, a small deferred compensation account and her 401(k). In the absence of a life altering event, the money in the 401(k) is essentially extra money and not needed day to day. We are debt free. I am fortunate to receive a family retiree health care plan with no premium.
The question is regarding what to do with the 401(k), which is approximately $200K. Whether we leave it where it is or roll it over to an IRA, what is the best way to invest it? The beauty of the regular monthly contribution to the account over the years, of course, was the dollar cost averaging. However, DCA will now be gone as there will not be any more contributions.
My objective is simple: We need the money to grow, obviously, to keep up with inflation and perhaps a little more. I don't need to get greedy here.
What suggestions does anyone have on how to do this? Stay in mutual funds, and if so, what type, purchase blue chip, dividend paying stocks, stay in bonds,
Current investment blend is 75% large cap mutual fund and 25% bond index fund.
Thanks ahead of time for any suggestions.