Ask Terry Questions Conservative to risky? Roll the dice now with extra cash?

Conservative to risky? Roll the dice now with extra cash?

By Terry Savage on April 08, 2013 | Investments

Terry , I’m 55 and I’ve been a buy and hold person my whole life and have contributed to a company matched savings plan (401k) since 1979. I also will have a pension when I retire plus I’ve been max contributing to a Roth IRA since 2004. On top of these funds I have a privately held account with Fidelity that is invested in mutual funds. I just opened an account with Vanguard in their money market fund with some cash reserves that I had in my bank account. I still have more than enough cash to weather anything that comes up without touching any of these accounts. My question is should I make changes in my Roth IRA to go from conservative to risky or should I roll the dice with the money I just moved to Vanguard ? I think the fact that the Roth doesn’t have capital gains would be the one to be more aggressive with. What do you think ? By the way you are by far the most beautiful financial adviser I’ve ever seen.

SAVAGE SAYS:Well, thanks for the nice compliment in the last line!  You made my day.  Still, I suggest that if you want to “roll the dice” you should go to Las Vegas, and also enjoy a vacation along with your gambling.   It’s difficult to give specific advice, without knowing more about your portfolio, your goals, and your cash flow needs.  But I’ll make a specific suggestion.  You’re at the right point in time to benefit from the T. Rowe Price Retirement Income Advisory service — It’s free if you have money in one of their funds, or $500 if you just want the advice.  You’ll work with an individual planner to make sure your investments are on course to meet your retirement goals.  And they’ll also give you advice on withdrawals, to create the best possibility of making your money last as long as you do.  Talk to them, and then you’ll have a better,more personalized answer to how to invest that Roth.



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