QDRO rollover to other retirement 58YO

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Joined: Wed Mar 13, 2019 3:41 pm

QDRO rollover to other retirement 58YO

Post by Free2bme » Wed Mar 13, 2019 4:01 pm

Looking for all advice regarding QDRO rollover.

Emergency Funds: I do have this. About a year.
Debt: 75,000
Tax Filing Status: Single
Tax Rate: 12% State: 3.07%
State of Residence: PA
Age: 58
*Desired Asset allocation: Unsure what I want, but currently it is 84% stock, 16%bonds
Desired International allocation: Unsure I want/should have that.
Investment & retirement account $ = 750,000
Fund names: Investment: Apple (40G), Costco (1G), Disney(11G), Facebook(<1G), Corning(18G), Tesla(4G), cash (7G)
Retirement: Individual IRA (TDAmeritrade) – Positions: Invesco Comstock Fund Class A (ACSTX), The Growth Fund of America Class A Shares (AGTHX), American Funds Investment Co of America A (AIVSX), The Income Fund of America Class A Shares (AMECX),, American Funds Capital World Growth & Income Fund Class A Shares (CWGIX), Fidelity Select Natural Gas Portfolio (FSNGX). (all have value around $10,000 except AGTHX – $22,000)

Retirement : * QDRO: (approx. 600G) (No additional funds are being contributed to this) This is the fund I need to either transfer to another Fidelity Retirement fund (IRA?) or liquidate and reinvest elsewhere in a retirement fund within 2 months:
Asset allocation: 83.48% stock,
16.52% bonds
“All in one Life Cycle Funds” - Blended Fund Investments – target risk – moderate (just under ½ the value in the account)
“Expanded Choice – Mutual Funds” – Large Blend Vanguard Dividend Growth Fund Investor Shares, (little more than half the value of the account)

Available funds: $50,000 (cash) (personal account)
Note: I will receive a pension of approx. $850/mo at 62, $1000 at 65
SS will be $964 at age 62 or $1440 at 67

Question 1: My immediate concern is the retirement money currently in a QDRO at Fidelity which must be moved. I am not strongly confident about finances and investing but I am willing to make it happen with some encouragement and advice. My choices, as I understand them, are 1 -opening another retirement account with Fidelity and rollover same funds there, or 2 -finding another investment ‘house’ and opening a retirement account, transferring the liquidated funds, and then reinvesting. The first question is where should I put this? (I have a TDAmeritrade IRA account currently that I could add to, but I am not fixed on staying with them, if another option is more desirable.)

Question 2: How do I choose my asset allocation and then which funds? Can you recommend the best allocation and/or funds for me based on my age, circumstances, and assets, etc?

Thank you for any and all your help!

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David Jay
Posts: 6337
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: QDRO rollover to other retirement 58YO

Post by David Jay » Thu Mar 14, 2019 2:33 pm

Welcome to the forum!

A few thoughts on your situation:

1. Every major brokerage will be familiar with a Qualified Domestic Relations Order (QDRO). You can talk to Fidelity or TDA or another low-cost brokerage. At BH we typically recommend Fidelity, Vanguard or Schwab because each has a full line of low cost index funds - you can build a good 3 fund (or similar) portfolio at any of those 3 brokerages.

2. Talk to the brokerage who will be receiving the money. They have the financial incentive to make certain that the transfer goes smoothly.

3. Don’t be in a big hurry to select investment options. Inside an IRA you can change investment options at any time with no tax consequences. So just move the money into a Money Market Account (the settlement account is fine) to meet the time window for the QDRO. Then set about to educate yourself (here at BH the Wiki is a good place to start: https://www.bogleheads.org/wiki/Getting_started ) as you begin this phase of your life.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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