chicken money – sell stocks now and put money into what?
I am 64 and have been cut to 55% of my income – my wife is 69 and retired. obviously we have lost a lot in the stock market – we have about 350,000 in different Ira’s, Roth s, stocks and mutual funds. What do you reccommend to put the money into now?
Terry Says
You are at a stage in life where personally I believe that at least half of your assets should be in “chicken money” — by definition that includes places where you cannot lose a penny. By the way, you’ll barely earn a penny either these days, with interest rates so low! But that’s the price of being able to sleep at night.
Your mutual fund companies offer money market funds, and that’s a good choice inside your IRAs. If you hold stocks or mutual funds outside your retirement accounts, you’ll have to deal with tax consequences of selling. Maybe you can offset some losses if you have them against gains in other stocks.
This is the time to sit down and look at your most recent statements and ask yourself how you’d feel if the market went back to its lows — or stayed at this level for years. Either is a possiblility — as is the possibility of a further rebound. So this is not just an ‘investment’ question, since no one can give you a guarantee. It’s a personal concern decision. Thus the old Wall Street saying: “Sell down to the sleeping point.”
