My wife and I are living on our Social Security benefits. I've been very pleased with the growth of my Fidelity 401k in my former employer's retirement plan. As far as I know, I can leave my balance in the company's plan indefinitely, correct? Obviously my balance fluctuates somewhat with the performance of the stock market, but Fidelity has done a great job so far.
I'm 71, so next year (2021) Fidelity will have to pay me a Required Minimum Distribution, which will be a taxable ballpark-figured amount of about $25K, which we probably will not need to spend. I'll set it aside and use part of it to pay our income taxes as well as our Medicare supplemental insurance plan ("Part F"), property taxes and homeowners and earthquake insurance if needed. (Through frugality and diligence, we paid off our mortgage years ago.)
Soooo, what if the market crashes? Should I move my balance to several FDIC-insured IRAs now? I realize the return on FDIC-insured IRAs would be miniscule compared to Fidelity's historic returns, but at least the funds would be insured. I want my wife to be able to comfortably get by should I die.
Any advice or recommendations? I'm inclined to stay with the Fidelity 401k, but I don't want to be foolish about these retirement funds.
Thank you in advance for your comments and answers!