You're working, and you've got a family that depends on you - both now and down the road. Where do you invest your money? Do you borrow against the equity in your house? Through a preferred provider relationship with USAA, The American Legion can provide expert financial advice to just about any question.
Randy, we think the real question you should be asking is “How can I start saving more?” Since your Navy retirement just kicked in, maybe you could leverage that new or additional income to increase what you’re putting away on a monthly basis. Whether you decide to start adding money to a retirement plan (e.g., Roth IRA) or just saving in a mutual fund or brokerage account, you need to increase the savings to avoid a $1,400 per month lifestyle in retirement. The $55,000 you currently have set aside may be useful to pay a few medical bills and/or serve as an emergency fund, but it won’t add to the retirement living expense pot.
If you have a 401(k) at your current employer that has quality investment options and reasonable expenses, you could rollover your old plan to the new one, which you need to start contributing to if you’re not already. On the other hand, if you’re self-employed, you could rollover the old plan to a self-directed IRA. In either case, as long as you execute a direct rollover – the money goes from your old employer plan directly to your IRA or new employer’s plan – there will be no tax consequences.