403B withdrawal
I have $30,000 in a 403B account. I moved all of my money into a safe account that only pays 1% interest. I did this after losing $5000. My question is, should I take all the money out and invest it into some thing paying more interest? I am 72 this year and will be required to take the RMD.
Terry Says
I think that switching back and forth with ALL your money is a recipe for disaster. You can never guess correctly (nor can the pros) when it’s time to get in and get out and get back in again!
At this point, and assuming you have no other assets and would panic at any future losses of principal, I think you should stay in the “safe” alternative. Yes, your money will be impacted by inflation — but you won’t have the “shock value” of seeing the principal decline if the market goes lower.
