IRA — You’re about to make a HUGE mistake, says Terry
hi Terry ,my ira is invested in a annuity with an insurance co. it has been there 5 yrs.earning 2% ,I’m considering moving it to Wells Fargo clearing services.In to pimco bond fund and a nasdaq fund .Or a bank c d fund .Where can I earn more with out paying fees.I’m 65 yr old
Terry Says
First, that’s ridiculous. You need to understand what you currently own. First of all 2% has been a nice return for the past few years. Even today a one year CD is paying only about 0.5%. Second of all, there are likely penalties and charges for changing this product. And you should ask if when rates go up, it will pay a higher yield automatically.
You can lose a lot of money in a bond fund when rates rise! Please do some basic homework. You’re about to make a huge mistake and I can’t begin to explain all the errors in your thinking. Suggest you buy a copy of the 3rd edition of The Savage Truth on Money on Amazon, and learn about “chicken money” and investments before you do anything else.
