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Author: RJW2000 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75791  
Subject: 401K/Income Fund/Asset Allocation Date: 11/10/2000 1:07 AM
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Greetings
I will be retiring in about 4 months at the age of 55. What I've been thinking of doing is leaving my 401K intact, not rolling it into an IRA. This way I can withdraw money from it as needed without paying a 10% penalty. I have checked with the plan administrator and they do allow such withdrawals. If I were to roll it into an IRA I would need to set up SEPP to avoid the 10% penalty in order to withdraw money prior to reaching 59 1/2.

The 401K has a private income fund managed by Fidelity. This fund has an annualized return over the last 5 years of 6.6%. I am planning on keeping 3 to 5 years of living expenses in this fund and making withdrawals every couple of months.

The remainder of the money in the 401K will be put into the American Century Ultra Fund (TWUIX)this is a large company growth fund.

There is also the question of what to do with the company stock that came from a 5% match over the last 31 years. I know what the options are, just not sure which one to use.

I will also be receiving a lump sum distribution that I would like to put in an IRA at Vanguard. I would put 46% into VEXMX, 20% into VIVAX, 21% into VISVX and 13% into VISGX.

I will also be investing some money in individual companys that meet the foolish 8 stock screen.

I would like to hear comments, suggestions, conserns, etc. on what you think of my plan. I have been to a couple of financial planners and they seem to want me to get into funds with front loads and high yearly expenses. I guess this is how they make their money. It makes me very uncomfortable knowing they have such a conflict of interest.
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