Would you move your Pension Savings into the market now with the curent instability?

[jojo777]

I retired on 12/31 and I have not done anything yet with my 401k (currently with Fidelity through MegaCorp) or Pension. I can leave my pension with Mega Corp but it will only get small interest credits. (pensions stopped many years ago, I was just lucky enough to have enough years at the time to have one. I can roll it over and have my financial advisor work to invest it. I'm only 49 and have a new job opportunity so I am going back to work in a few months. I have plenty of severance and cash on hand to get me started in my new career. I don't expect to tap into the money until at least 55 when I may consider a 72T or may continue working depending on the success of Career Number 2. The pension and 401k combined are over 900k.

Would you move over 400k into the market now?

 

[DrRoy]

I am planning to RE next year, and have a similar situation. My pension will be about 40% of my desired income, and I will draw the rest from my investments at a conservative WR. I do not like the costs of buying an annuity, but I like the idea of having some of my income being very steady and not subject to market risk. It makes it easier to handle rough periods in the market to know that not all is declining. It is another type of diversification.

 

[Fedup]

You can. Over slowly if you are too chicken.


Sent from my iPad using Early Retirement Forum

 

[jojo777]

Dr. Roy-Thanks My husband has a monthly annuity pension and health insurance, so I was headed toward putting it all in the Retirement fund.

 

[jojo777]

Fed up I thought of that too. I am Chicken

 

[bingybear]

I retired on 12/31 and I have not done anything yet with my 401k (currently with Fidelity through MegaCorp) or Pension. I can leave my pension with Mega Corp but it will only get small interest credits. (pensions stopped many years ago, I was just lucky enough to have enough years at the time to have one. I can roll it over and have my financial advisor work to invest it. I'm only 49 and have a new job opportunity so I am going back to work in a few months. I have plenty of severance and cash on hand to get me started in my new career. I don't expect to tap into the money until at least 55 when I may consider a 72T or may continue working depending on the success of Career Number 2. The pension and 401k combined are over 900k.

Would you move over 400k into the market now?

First question... how is it invested now?
Second question... how would you invest it if you moved it?

for both the pension and 401k.

I you can effectively have them invested the same leaving them the way they are and pulling it to your broker.... then it likely makes no difference. If leaving them provides a little safer investment or a little better return, I'd likely leave some their since you seem worried about the markets.

 

[pb4uski]

+1 with bingybear. If your 401k has a good stable value fund that pays 2% or more, I would leave it there and take advantage of the stable value fund, which you cannot get in an IRA.

You really need to decide what your AA is to answer your question. If after deciding what your AA is and assessing your gaps you need to put money into equities, then I would value average in over 10-20 months if the amount is significant.

 

[jazz4cash]

What does your financial advisor think you should do?

 

[mickeyd]

Fed up I thought of that too. I am Chicken

What does your investment policy statement indicate you should do in this situation?