I am 43 and getting ready to leave corporate life for greener pastures, and do not anticipate returning to the high stress/high income life. I will be shifting my 401(k) out of the company in about 6 months' time, stripping out highly appreciated company shares (paying the required 10% penalty and 40% ordinary income tax on their cost basis) and converting the remainder to a self-directed IRA. The shares will be taken out to hold, eventually to be whittled down to a fixed dollar level of exposure going forwards, and to avoid having to pay ordinary tax on all the gain when IRA distribution hits. The residual amount in the 401(k) is currently invested 60% in S&P500 index, 35% in 2-3 year Treasuries and 5% in company stock....due to somewhat limited alternatives in my employer's 401(k) program.I'm looking for suggestions on what to do with the residual to prepare for the IRA roll-over. Should I think of this as a short-term investment decision and convert it all to cash, or could I leave as is? What actually is physically transferred to the banker, cash or the current actual allocations? I am likely to allocate the future IRA in various indexes, S&P500, QQQ, Russell, etc.Thanks for any suggestions..........
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra