What’s the best thing to do with IRA’s and 401k’s in this market?
Do you think if the money in the IRA is moved to a cash account it will be available by retirement age? (I’m not sure how this is affected if the banks go down),
For example if it wasn’t an IRA it could be moved outside of the banking / brokerage institution but with retirement plans there is a penalty fee for early withdrawl.
If it was your money what would you do?
Answer:
This is a complex question. First, until deflation runs its course the safest investment within an IRA would be a Treasury Only money market fund. Most of them have either closed to new investors or are in the process of doing so. Here is a list of them that were open last time I checked:
American Century Capital Presv Fund
(800) 345-2021
www.americancentury.com
Dreyfus 100% US Treasury MMF
(888) 782-6620
www.dreyfus.com
Schwab US Treasury Money Fund
(866) 855-9102
www.schwab.com
T. Rowe Price US Treasury Money Fund
(800) 225-5132
www.troweprice.com
Vanguard Treasury MMF
(800) 662-7447
www.vanguard.com
Weiss Treasury Only MMF
(800) 242-8092
www.tommf.com
The other issue is there are rumors coming out of Washington that plans are being made to confiscate all retirement funds and in return, the government will guarantee a fixed payment at retirement age. I don't know about you but that doesn't give me a cushy secure feeling.
If they do decide to do that then in my opinion, it would be better to withdraw your funds before they do so and pay the penalties and taxes.
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The worst thing to do with 401Ks or IRA'S is to put them in bank CD'S or treasuries.
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