Q & A
My husband and I are retired. Our combined income will be $45,000 per year, and together we have $200,000 in 401(k) plans. What should we do with the money in the 401(k)s that will provide the best supplemental income option in retirement?
Full Question: My husband and I are retired. Our combined income will be $45,000 per year, and together we have $200,000 in 401(k) plans. What should we do with the money in the 401(k)s that will provide the best supplemental income option in retirement? We are planning to sell our home and downsize to a less expensive one. Would placing some or all of this money in an annuity be a good choice? Our concern with leaving our money where it is comes from the hit we took to our savings during the stock market plunge about 20 years ago, and seeing our parents’ IRAs and 401(k)s plummet at a time when they were just retiring.
Answer: You’re concerned about what happens if the market goes downhill, and that’s legitimate. But unless you invest in the market or other areas where there is going to be some risk, you’ll receive almost no return on your 401(k) money and other savings. Given that, I would hire a competent broker and explain exactly what your circumstances are and your need for a secure investment. You are young enough that even if there is a hiccup in the marketplace, you can certainly survive it.
Source: Richmond Times-Dispatch, 5/20/2015
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