Quote:
Originally Posted by BigRedChief
I've got some CD's that are mature in a couple of months. I have a 401K I have to make a decision on in a couple of weeks. What have you guys done with these in the past or will in the future?
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There are a lot of different variables, a lot of which depend on your needs/wants but here are a few things I’d do if it were me. (Note: I’m just a schlub telling you what I’d do. No advice here)
Take your CD money and split it like 4 ways and then every 3 months put one section in a CD. Or you can do it 12 ways and do it every month. Laddering CDs can help offset the timing risk.
As for your 401K, I’d leave it in the market as long as you’re comfortable with the risk profile of your investments. One thing I would do is figure out if there are any client paid fees. They don’t advertise them so you’ll have to do some looking. If there are any fees, definitely roll that shit into a self directed IRA. Almost all the big ones have no fees. Then if it’s me I keep some index fund type exposure to the market.
EDIT: another thing you should probably figure out is how difficult it is to get normal distributions out of your 401K. If that’s very difficult, again I’d roll it to an IRA.