Turning 62: Research, caution help in handling lump sum

— -- Having your nest egg doled out to you in one lump sum can be rewarding. It can also be extremely risky. You'll need to figure out where to invest it. How much to withdraw each year. And whom to turn to for advice.

As baby boomers start to retire — the eldest are turning 62 this year — many will be grappling with these issues. They're the first generation whose principal retirement assets will come in one big chunk from 401(k)-type plans.

How do you make your money last as long as you do? There's no easy strategy. Try to do plenty of research. And avoid making hasty investment decisions that could deplete your hard-earned nest egg.

Future retiree Don Price, 61, of Harrisburg, Pa., looks forward to managing his money. Even though "I don't have a good knowledge about everything, I have a good knowledge about a little bit of everything," he says. As he nears retirement, his guiding principle for investment is: "I don't try to get rich quick. I just look for vehicles that give me a steady return."

Here are 10 other tips to help you manage your lump sum in retirement:

Don't be hasty about rolling over your money.

If you want to transfer money to an IRA when you retire but don't know how to invest it, move it to a money market fund at a discount brokerage firm until you decide on an appropriate mix of investments, advises Sheryl Garrett of the Garrett Planning Network, a network of independent financial advisers and planners.

Make sure you do a direct rollover of your money, also called a trustee-to-trustee transfer. It involves moving funds electronically to your financial provider of choice. That way, you minimize the chances of mistakes, which could lead to taxes on the distribution and a 10% early-withdrawal penalty.

Find a good financial adviser.

Start by checking websites such as the Garrett Planning Network, www.garrettplanningnetwork.com, and the Financial Planning Association, www.fpanet.org. Financial planners in the Garrett Planning Network offer fee-only, pay-by-the hour advice. That might be a good fit if you're a do-it-yourself investor and want a check-up or regular financial reviews. The Financial Planning Association offers planners for investors of all levels of financial sophistication.