This is very good advice, which I agree with - I always roll over my 401k from past employers into a self-directed IRA. The good part about that is that you’re in complete control. This also helps you consolidate your retirement funds so you don’t have multiple 401k from old employers hanging around. Plus, unless you have a super progressive employer, you can beat the fees you’re paying in the 401k by investing through your IRA.
I strongly disagree with this. This is a form of timing the market. And while there very well may be a recession coming up, nobody can predict when it will occur, how long it will last, and when the recovery will take place. Study after study has shown that “time in the market” beats “timing the market.”
Here’s one of a billion links saying why market timing is bad: https://www.albertbridgecapital.com/drew-views/2019/1/29/the-futility-of-market-timing
You can say “well, I have a lot of money and I don’t want to invest it all at once”… if your 401k was invested in stocks you’re just maintaining that investment. So that argument only applies if your 401 was all in money market funds or the like. However, if you’re really really anxious about buying a bunch of stocks at one time, you could consider investing it over time - say 3 to 6 months. Purchase 1/3 of whatever you’re going to buy now, 1/3 in 2 months, and 1/3 in 4 months…That lets you ease into it (it’s still market timing, though).
For the next 6 months you can contribute to your IRA and when the 401k from your new job kicks in, change to that (so you get the match, of course). That’s not hard, it just takes a little determination to make sure you contribute!
There will certainly be a recession sometime, maybe sometime soon, but what you need to do to prepare for it is not borrow money you don’t need, don’t buy crap you don’t need, invest in solid stuff, and don’t panic when things go down. Keep investing when things are bad so that when prices go down you achieve good dollar-cost averaging. Then when the recovery occurs you’ll look smart. Don’t panic!