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The Unofficial New Year: Review Your Retirement Plans

BOSTON (CBS) - This is a good time of year to spend some time on your retirement planning.

As you get close to retirement review what you have in your retirement plans. Take inventory as to how many retirement plans you do have. Many folks realize they fall into the category of having too many retirement plans. Not too much money, just too many plans.

What have you got and what is it invested in? List everything.

Let's deal with the IRAs first. Every time you heard about a new hot mutual fund you put some money in. Well now you have seven IRA accounts. Consider consolidating those IRAs into one IRA.

The mutual fund companies make it very easy to consolidate your IRAs. You may be able to download all of the paper work from the fund's website. They will take care of the transfers for you.

Find a couple of all-weather index mutual fund such as a S&P 500 Index fund, a short duration conservative bond fund, a mid-cap fund, maybe a small cap fund, consider an international fund and transfer everything into them.

If you really love your different mutual funds you may be able to move them in kind. Some mutual fund companies like Fidelity will allow you to transfer the funds in the old IRA to a new Fidelity IRA.

And when it comes time to begin mandatory withdrawals at age 70½ you will be very happy to be dealing with just one company and one account.

I would recommend moving most employer retirement plans into an IRA when you retire. You will have many more investment choices and ease of withdrawing money in retirement.

Be careful with your 403(b) plans though. Some are set up as annuities and you may not be able to transfer all of the money into an IRA without paying a penalty.

457 plans require a bit more planning as well in that you can access the money before you are age 59½ if you leave your current job. But if you roll the 457 into an IRA it then takes on the rules of the IRA and you cannot access the money until age 59½ without a penalty.

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You can hear Dee Lee's expert financial advice on WBZ NewsRadio 1030 each weekday at 1:55 p.m., 3:55 p.m., and 7:55 p.m.

Subscribe to Dee's Money Matters newsletter here.

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