I am trying to find the earlier threads with information/advice on options for the pension plan after leaving Intel. So far, no luck. I am hoping there is a helpful person out there that will have better luck with locating them...
15 replies (most recent on top)
@2dvs. IF the rates are adjusted up. If you do that you'd better not take too long or the pension will drop when Intel funds the RCP in February I think it is. Something like that. i tracked it daily for years out of curiosity and remember it tanking a lot when the credited the RCP.
Sometimes it's better to just take the money and run and not d_ck around.
If you do decide to take the lump sum on your pension, wait until after Jan 1 when the lump sum amount will be adjusted up (based on low interest rates in 2016)
Good question @1who. What I'd do is look to see which plan has the cheaper funds that you like. The Intel 401K plan has some uber cheap funds that you're not going to find outside of the plan such as the VIIIX at .02%! Yes, that's a zero between the decimal and the 2, lol Vanguard are highly respected funds and known for their low fees. That's a large cap fund, BTW. Don't put all your eggs in one basket. The non institutional equivalent fund will cost you more outside of a 401k.
But as I said, you can transfer money into BrokerageLink and buy ANY fund out there. If your new employers funds are better... by all means, move it over there if you want. But to be able to buy anything keeping it where it is...? That's pretty awesome to me. I have some money in the 401K (VIIIX, etc) and the rest rolled into BrokerageLink to buy whatever I so desire.
Lastly, did you read my comment about the advantage of keeping it in your 401K if you might need the money penalty-free between age 55 and 59.5? It's here in this thread.
-usw & -gwb
What is the advantage of staying in the plan versus rollover or out to a new employer
Again, that's an incorrect statement @1lpp. You have availability to every single mutual fund and ETF out there through BrokerageLink @1lpp. You obviously didn't read the link I provided as I spelled it out on my other thread.
For those that are click phobic here's what I said:
Actually, Intel's 401K is awesome. You aren't tied to a list of choices they give you (which most people think they are). You can invest in ANY mutual fund or ETF out there over in BrokerageLink. You just can't buy individual stocks or other oddities that you can if you're investing outside of your 401K. If you don't know how to get your money into BrokerageLink to manage it yourself, call a Fidelity NetBenefits rep and chat with them about it. There's a process which I don't recall off the top of my head. Something like... liquidate whatever funds you want to move over and then when they are sitting in cash, you move them and then buy whatever you want with them.
It would be nice if people unsure of their facts started with "I think" or some similar phrase so as not to make you sound like you actually know what you're talking about when you don't. You might want to read my post in the link provided.
-usw & -gwb
Not sure I agree with you there @kvs. Rolling over a 401K has it's pros and cons. It's not a one size fits all option.
I'm -waw on this thread: https://www.thelayoff.com/t/Ik1657G
and one of the things I mentioned is:
*@-geh (and anyone else thinking of rolling your funds into an IRA (a"as different broker") ... if you plan on retiring early (or let go and can't find another job), and will need money from your retirement to live on (before you hit age 59.5)... then you must leave your money in your 401K, you CANNOT roll it into an IRA or you'll pay a penalty (on top of taxes) if you withdraw money from your IRA.
In other words.... you can withdraw money from your 401K penaltyfree IF you stop working in the year that you reach age 55 (or later). Please note that you can't stop working at age 54 or earlier, and then wait till you hit age 55. The tax law doesn't work that way. Stupid, I know.
So, bottomline is you'd have penaltyfree access to your retirement funds between ages 55 and 59.5 FROM YOUR 401K ONLY (which is when you can normally take money out penaltyfree).*
There's more said in that thread so you might want to check it out. Also, there's more threads if you Google for it. I used: thelayoff.com intel 401K (roll, rolling) to find my old post. There's others there but I'll let you read them yourselves. I'm nice but not that nice. lol ;)
-usw & -gwb
If you have enough money it is worth looking to roll over your 401k, intel SERP, and pension into one rollover 401k. Fidelity fee structure if you have more than a million is pretty good!
Intel options are varied and have average cost fees, so not great but not terrible either.
Good job at finding that @syo. You posted my thread while I was finishing up my last post. lol
-usw & -gwb
Looks like Google used to be better at searching this site for things. Oh well.
Ok, so.... the nutshell of things I've posted on this topic are:
I'd take it and manage it myself which I've already done. Why? Because I think I can do better than a conservative formula that's applied. Also, not sure if you're aware but part of the complex formula is when your RCP (Retirement Contribution Plan) goes up, your pension goes down and vica versa. That's because the pension is meant to offset some magic number Intel has in it's head for how much they think you should have in your RCP.
And... now that I added RCP to my Google search I came up with my responses.
Here's one of my posts: https://www.thelayoff.com/t/I8chtyP I'm -gwb
Let me know if you have any other questions. Also, try adding RCP to the google search I mentioned below and check out the other threads. :)
-usw & -gwb
Or, rather, found this one: https://www.thelayoff.com/t/I8chtyP
Found it. Thanks!
https://www.thelayoff.com/t/KiS5y8y
@xvz -- I called Fidelity. I am looking for additional perspectives.
@usw -- I am trying to make a decision on letting the plan ride with Intel versus taking the lump sum now and investing it myself. I am leaning toward managing it myself but part of this may be related to a general distrust of Intel given my experiences with them over the past year. I remember that there was some good information with the thought processes behind it in the original thread and was hoping to read it thru again.
I'm also the one that has posted how to search this site via Google. For your particular request it would be:
thelayoff.com intel pension
-usw
what's your question? I'm one that posted a lot of the info.
Call Fidelity.