By Terry Savage on August 15, 2018 | Chicken Money

Hi Terry, I have a $16,000 IRA/CD Sitting idle that I’ve held for quite a while. The interest paid as you know is minuscule. I am retired and collecting social security. If I transfer this to say an index fund or another mutual fund, is it possible that this transaction could count as income which could affect my senior exemption status on my property taxes? Exempt? Either way, do you have a general suggestion as to what to transfer this to? My wife and I are basically living off our social security deposits and getting by ok for now. This includes modest vacations and road trips etc. I am trying not to tap into our modest mutual fund reserves. The House is just about paid off but but it still concerns me that sometimes we cut things kind of close, so any suggestions from you is appreciated.
Thank you

Terry Says

My first question is: How much of this money are you willing to lose?
If the answer is a loud NOTHING, then you definitely don’t want to be putting it into stocks, or a mutual fund, even an index fund. There is always a downside risk in stocks.
There’s an old saying: “Desperate money never makes money.” That’s so true in your case.
Check around for banks paying a higher rate, and have a DIRECT TRANSFER made to a new IRA account if you find a significantly higher rate. As interest rates start moving up, there should be some better deals around. And once you have reached age 70-1/2, most banks will not charge a penalty for moving out of an old low-yielding CD.



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