So What’s The Best Option For You?
The best course of action for your 401(k) plan depends on you, and there’s more than one correct answer. Experts generally advise against a lump sum distribution unless you have a smaller amount of money in your plan.
At the same time, putting all your cash into an annuity is typically not a smart idea. But going this route with a small portion of your 401(k) might not be the worst idea in the world. Ultimately, the best option for you might be to combine these ideas.
For instance, you could take some of the money out right now to cover your current expenses, use a portion to buy a deferred-income annuity, and put the rest into an IRA.
The takeaway here is that there isn’t a one-size-fits-all solution to the issue of what to do with your 401(k), so it’s crucial to weigh the pros and cons of every option and choose the option that’s best for you.
Wondering if there are any other options out there for you? Have you ever considered investing? Amazon has a great read to help you understand this option better!
And if you found this article useful, we also recommend reading: 8 States With the Worst Healthcare for Seniors
