What to invest Roll Over 401k

#1

Good morning , I been following your ig fo a while now. I had question and wonder if you wouldn’t mimd giving me your opinion. I am a nurse. I left my former employer earlier this year to travel nurse. A lot more lucrative. I rolled my 401k over to fidelity and is now sitting in a traditional account but not invested. My question is should I roll over to IRA now and take tax hit or keep traditional. I plan to put those funds in index fund accounts. However as a travel nurse my taxable income will be lower for 2020 then 2019. I also plan on buying my 1st property this year (investment). Currently my investing strategies are save more then I spend. Live below means, want to build real estate portfolio and index fund accounts. Eventually doing some stock trading but that’s not my strength. So I know that’s a ton of information. But I kinda stump on what I need to do to maximize my 401k that I rolled over. Thank you

Warner

#2

Hey @WB3!

In general, there’s usually not a rush to do a conversion from a rollover IRA to a Roth IRA. You can let that grow tax deferred for decades if you want. But you DO want to make sure it’s invested right away. Don’t leave cash sitting in that account.

So for example, you could go to that rollover IRA in fidelity, dump 100% of it in a target date index fund and just forget about it. All new contributions would go to your Roth IRA or 401k. If you ever find yourself in a year where you have no or very little income, then you could revisit the topic of doing the conversion.

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#3

Thanks Jeremy!!! Appreciate the knowledge!!! :fist:t4:

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