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Question for the Money Doctors

Question submitted on Aug 6, 2013.


I have a 401K upward of $450,000.00
The market is high and bonds dying
I am nervous about leaving it. I feel treasury bonds and muni bonds have an unsafe future.
I like to move half to a life time indexed annuity
Can I do that at 50 years of age?


The short answer is yes, you can move part of your 401K into a lifetime indexed annuity, if the plan administrator allows for those types of investments. Some smaller 401K Plans may not offer the variety of investment options that you would have if these funds were in a self directed IRA.

You don't mention your current asset allocation, but based on your age, a moderate growth portfolio might be appropriate. This would result in approximately 40% of your assets in bonds.

Many people are concerned that as interest rates begin to rise the value of their bond portfolio will decline. Don't panic, just make certain that the bonds or bond funds in which you have invested have have a shorter duration so that they will not be as suceptable to the volatility when and if rates do rise.

Good luck and remember that even at 50 you are still investing for the long term.

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