Retirement and what the best option to do with 401K

[Koolau]

Speaking of 401(k) and slightly off topic, I just took my yearly RMD from 401(k). SO glad I kept the 401(k). Having, over the years doled out much of it to tIRAs and converted them to Roths, I have ONLY the 401(k) to take RMDs from. One quick action on-line and I'm good for the year - unless I want more. I see that as an advantage for 401(k) but YMMV.

 

[OldShooter]

From what I'm hearing on here the fees are a bit high on her 401K, but 2021 the Rate of Return was 14.09%. I get a little nervous when they perform well. ...

Be careful. What you should be looking at is performance relative to the total return of an alternative. For example, if her investments were 100% S&P then 14.09% is actually poor performance. IIRC the total return of the S&P, aka an S&P index fund, last year was well over 20%.

https://www.portfoliovisualizer.com/ is your friend in these matters. Spent the time to understand it as necessary, then compare her 401K portfolio to other asset allocations, to simple portfolios of a few inexpensive index funds, etc. It is easy to become complacent when the market is doing well, looking a number like 14.09%, but if you are leaving 5% on the table that is not such a good number after all.

 

[B-Guy]

Just to follow up.

After reading all the comments here and doing a lot of research online, we decided to roll it over to a IRA as there are far better investment options. There didn't seem to be a downside to rolling it over.

Thanks to all who responded. You all contributed to a great starting point.