What is the best way to rollover a 401k and keep liquidity?

Question

I would like to take cash at time of rollover. I know that will be taxable. I am 62 years old and had to take early retirement. I only have my SS income.

Answer 1

if you do not have a brokerage firm get one (i use Edward Jones) roll over everything to the account -- than figure out how much you want each month -- 2 years worth in there money market == invest 2nd thru 5th each into ladder cds with dividends going into the money market to have for a rainy day fund -- put the rest in to good corp bonds and mutual funds== i did this at 59.5 and never looked back i am now 67 -- i get over 13K a year out and my fund has been growing each year!!!

Answer 2

Roll your 401k into an on line brokerage IRA account and then invest in money market funds or shorter term CDs. You want to roll the 401k into an IRA so that you can maintain the tax deferral as long as you can. On the cash you retain and the subsequent withdrawals there will be regular income tax but because you are over age 59 1/2 there is no 10 % penalty.

Answer 3

since you over the age of 59 "1/2" you can get distributions from your 401K but put the rest into IRA CD's at the bank.

Answer 4

First, roll over the entire 401(k) into an IRA. Then you can take distributions as you need.

Answer 5

roll it over to an account at your bank. purchase CD's in various short terms. As they reach term you liquidate only what you need and repurchase more CD's if you don't need the $$.

Answer 6

you'll need to keep some of it in stock mutual funds for growth to make the money last