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Ed Johnson
Ed Johnson, HR & Business Operations Consultant
Category: Finance
Satisfied Customers: 10760
Experience:  Central Michigan University, MSA Candidate; Global Compensation Operations Mngr; AA Degree Lib Arts
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my IRA is in mutual funds. i think i should move it all into

Resolved Question:

my IRA is in mutual funds. i think i should move it all into a money market fund so i don't continue to lose money. my funds have gone down $100,000 since june of this year.
Submitted: 9 years ago.
Category: Finance
Expert:  Ed Johnson replied 9 years ago.

Dear Luxor,


What kind of IRA is it? Traditional or Roth?

Customer: replied 9 years ago.
traditional IRA.
Expert:  Ed Johnson replied 9 years ago.

Dear Luxor,


Thank you for your additional information.


Any move of your money has to consider the tax consequences of an early withdrawal or taxes on any non-rollover amounts.


IF this does not get rolled over into another traditioanl IRA, already set up befor hand, then you are likely to face as much as 25 to 35 percent tax including federal, penalty, and any state taxes.


so my question now is, what other investment options does your current IRA have?



Customer: replied 9 years ago.
<p>my question is: should i park my money in an MMA, or leave it in stocks?</p>
Expert:  Ed Johnson replied 9 years ago.

Dear luxor,


My recommendation based on the current market echoes may public venue financial experts.


Some MMA's are getting 4.5 and 5 percent right now, while you would have to play hard to average that percentage in the stock market.


But really it depends on your goals and your age.


A person in their thirties, forties or even early 50's who were not risk averse, and did not need cash, might keep it in stocks, and even bottom feed, looking for bargains. When the market turns around sometime in the future 3 to 5 years, then they will clean up.


BUT if you are mid to late 50's or older, it makes since to place it in an MMA so that you can conserve cash and stop the rapid erosion.


The great Mr. Rodgers of the Rodger's index fund fame, has correctly predicted that the stock market is on an 18 year down hill trend, and that commodities will rule over the next 18 years. This means putting your money into high interest CD's or MMA's will be much better, especially for the risk averse.


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