20% LOSS IN 2 IRA’S, WE ARE IN OUR 70’S
What to do Terry, we are in financial trouble, we are 72 and had only $40K
in 2 IRA’s. We have lost 20% to date. We are thinking of taking the
remainder $30K out and put in savings. This is all our retirement money.
We will take the hit taking the money out, but we are too old to
lose anymore. Thank you so much!!!
Terry Says
Whoever advised you to keep all of this limited amount of retirement money in stocks gave you bad advice. It’s not that your portfolio did so badly last year. In fact, the broadest market average — the S&P 500 stock index — was down 20% for the year.
There is only one way to guarantee that you’ll never lose another penny. That is to sell — and never look back. But you don’t want to take your money OUT of your IRA, because that will incur immediate taxes. You can put the sales proceeds into a money market account inside your current IRA. Or if you have a brokerage firm as custodian, after you get the cash from the stocks, you can call Fidelity or Vanguard and they will help you do a rollover IRA and put the money in a money market fund there.
I have no idea whether he market will rebound this year or next. But you surely don’t need this aggravation!
