I have 10k in an old pension plan with a company I no longer work for. I have a 401k currently with my present employer and would like to take the 5k and start an stock trading account. Would this be wise?
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2You may feel that is not an exact duplicate - but just consider if your 'stock trading account' would (a) beat out the funds available in your pension [statistically, this isn't often done], and (b) it would further beat out the penalties of early withdrawal. – Grade 'Eh' Bacon Jul 13 '20 at 15:15
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1Is the pension plan a "pension" or is it a 401(k)? Can you cash in the pension fund? – mhoran_psprep Jul 13 '20 at 15:21
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When you say "stock trading account" are you referring to an IRA or a brokerage account? What are your goals and other assets? – Charles Fox Jul 13 '20 at 23:27
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It is a pension fund and I can start dispersing it or take a lump sum since I have became 56 yrs. I would like to fund a brokerage account. It is thru Hertz which i used to work for about 10 years ago. I have edited the question to show that it actually is 10k in there. – Matt Pedigo Jul 14 '20 at 23:27
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2Note that you may be eligible to roll over the money in the pension fund into a self-directed Individual IRA and do all the stock trading you like with that, without paying tax on a withdrawal. – Andrew Lazarus Jul 15 '20 at 0:31
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