How to invest in IRA to protect money during recession?
Hi! I’m almost 60, on disability, with a traditional IRA. Have pension, solid emergency fund, and additional savings. Low risk tolerance. Ira is 60% s&p index fund, 40% bond index fund. Do not want to lose money during recession. Put the majority into Tbonds? Something else? How long will recovery take after a bear market? Thanks!
Terry Says
Well, you can’t easily buy Treasuries directly inside an IRA. But I’m sure your IRA custodian offers a money market mutual fund that invests only in government securities — very short term. That would be the place to “hide” from the volatility of the stock market, maybe by moving half of your S&P fund exposure into a MM fund.
