This is a question that has been coming my way over the past few months and I wanted to take a moment to address it.
If you have a 401(k), 403(b), 401(a) or another pre-tax (it is called Qualified) account, then you have some options. Of course, at retirement you could begin taking some of the funds but if you are like some who don't need the funds to live off of just yet, you can roll those over into an indexed (to protect your principal) IRA that will give you a safe place and often, with a Lifetime Income Guarantee like your pension.
Most indexed products do not have high fees, in fact, some of the ones I use do not have any fee except for the Guaranteed Lifetime Income component. That is a sweet deal: you get safety from the downsides of the market but not leave money on the table as you would with a fixed IRA. AND, if you add the Lifetime Income component (at a small fee), the distributions would last your lifetime even if your money runs out--pretty slick.
Some accounts are set up as single premium (meaning you roll your funds as a one-time deposit into that account). Some accounts allow you to roll over those variable funds into an indexed account and add to the account at whatever interval you choose.
I should add that one of the benefits you get with rolling over your money into something safe is they often come with a bonus for doing so. That is a neat thing to have--free money just for going through the hassle of the paperwork.
Call, text or email me if you need help:
James Nutting
956-207-2486
jnutting@myretirementguru.com
