IRA diversification
I am 63 years old and have a Vanguard SEP-IRA with 40,000. This is not my main source of retirement. It’s been sitting in a money market doing nothing. I have been watching and waiting for market to drop, and it just keeps rising. Should I diversify some of this money in an ETF?
Terry Says
That depends on your overall financial situation and other retirement savings. I must confess I have a lot of money in MM funds inside my IRA as well! there comes a moment when you feel strangely comforted by having “chicken money” that won’t be lost in a market collapse, if/when there is one! But you do need some money committed to a diversified portfolio (S&P 500 index fund) to keep up with future inflation. finding the correct balance is the key.
