Moving funds from a traditional IRA to is in a money market to Treasury Direct Bonds
Hi Terry,
I have a VanGuard account and a Primerica Account with 401k funds. During covid I moved about $40,000 of my approx $320,000 into cash accounts. I cannot seem to get the advisors to move that money into a treasury direct account. I heard you on WGN and thought that was a good idea to pursue. I am 64.
Terry Says
No, most brokerage firms can only buy Treasury securities in the “secondary”market — after they have been issued by Treasury. And if your money is in an IRA account, you cannot buy Treasuries directly since TreasuryDirect does not act as a custodian for retirement accounts.
I don’t quite understand whether you have IRAs or 40lks or are still working for the company that established the 40lk. If so, you can only invest in the choices inside the plan. If you are no longer working, you’d want to do a direct rollover to an IRA. REad this article for instructions: https://www.terrysavage.com/rollover-now/
Once inside the IRA, you can make your own investment choices. And most major mutual fund families offer money market mutual funds that ONLY purchase short-term U.S. government securites.
