retiring

[ericm979]

Even "good" 401ks have excessive management fees (both stated and hidden) in addition to any fees charged by the investment funds themselves.
When I leave a company I roll that 401k over into a pre-tax account that I manage myself.

 

[RickB]

It took me far too long to figure out the only way around front end sales loads in my employer sponsored SIMPLE IRA was to invest in money market funds and sweep everything into my traditional IRA held at Schwab a couple times per year where I had better options. I left enough in the SIMPLE IRA to avoid annual fees.

 

[KennyG]

Even "good" 401ks have excessive management fees (both stated and hidden) in addition to any fees charged by the investment funds themselves.
When I leave a company I roll that 401k over into a pre-tax account that I manage myself.

It all depends on the company. Where I worked the 401K was run through Fidelity (although we could buy into about 200 funds, many of which were with other firms). The Fidelity fees for the funds were considerably lower than I could get on the same funds because of the huge volume we had as a company. The internal administrative costs were absorbed as an employee benefit. The entire program was directed by an employee committee. I've kept the money in the company 401K after retirement because I get lower fees than I would if I rolled it over.

 

[shooterdon]

I was released when I was 61...retired now for 7 years.

First thing is to talk to your financial advisor. If you do not have one, you probably do not have the resources to retire.

I had to cut down on my standard of living but it has not been a hardship at all. But I had no debt when I retired and that helps a lot.

We eat at home more and shop the sales.

My blood pressure dropped significantly and after 6 months was off my medication.

 

[RickB]

First thing is to talk to your financial advisor. If you do not have one, you probably do not have the resources to retire.

If you read through this thread you would realize how incorrect that statement is.

 

[MossRoad]

It all depends on the company. Where I worked the 401K was run through Fidelity (although we could buy into about 200 funds, many of which were with other firms). The Fidelity fees for the funds were considerably lower than I could get on the same funds because of the huge volume we had as a company. The internal administrative costs were absorbed as an employee benefit. The entire program was directed by an employee committee. I've kept the money in the company 401K after retirement because I get lower fees than I would if I rolled it over.

Me, too. My old employer used Fidelity for the 401K and paid the administrative costs. When they forced me out and retired me within months I would have had to pay the administrative fees myself if I left it with them. I rolled it over into my new employer's 401K, which was also managed by Fidelity. They have an annual fee of about $35 though my new employer.

 

[kenmac]

If you read through this thread you would realize how incorrect that statement is.

yep, If you're savvy enough to manage your own funds great. I have been using an advisor for about 25 yrs to manage my accounts.
He also has no issue giving my sons advise at no charge to them, even though they aren't with him at this time.
If I have a question, I can call him at anytime, day,or night. He owns the company he doesn't work for one of the many companies out there.
I have been happy with his services, and as I have stated, he charges me less than some here have published

 

[buckeyefarmer]

I got something from vanguard today in the mail.

I kept my last 401k in company fidelity account. Current is with principal

 

[Chris616]

I was released when I was 61...retired now for 7 years.

First thing is to talk to your financial advisor. If you do not have one, you probably do not have the resources to retire.

<snip>

As Rick writes, that is incorrect. Turning this around, anyone older than about age 55 should always have a fairly good idea of their financial ability to retire. If you don't, your financial advisor (and that may be you) isn't doing their job. If you don't know how close you are to accumulating what you need, you have no idea how appropriately risky your investments are. For example, if you're 55 and know that you have enough money to comfortably retire, but continue working for your employer sourced health insurance (in the US), you also know that your investments can be in low risk, probably low return stuff.

Chris

 

[buckeyefarmer]

My fidelity is mostly in a fixed income fund. Probably not aggressive enough.