IRA investments
My Ira is totally in stocks (seems to track Russel 2000) if I get out of the market where would I put the$? Is now a good time to pay the taxes and have the $ free and clear?
Terry Says
You don’t have to take the money OUT of your IRA to reduce your exposure to stocks. In fact, you want to leave your money INSIDE your IRA to keep growing on a tax-deferred basis.
But ask your IRA custodian (the company that sends your statements) to move a percentage out of stocks and into a money market mutual fund. You’ll earn a low rate of interest — but you won’t lose any money if/when the stock market falls.
Now, I’m assuming you’re near or in retirement. If you’re younger you can ride out any market decline– and keep contributing to a stock mutual fund inside an IRA. But since you’re worried, consider how much to move tothe MM fund. There is no tax consequence for doing so.
