By Terry Savage on July 26, 2013 | Investments

I am an elderly senior ( 75+) , have a bank CD IRA worth
$125,000 that will mature in Sept. this year.
I do want to move it from this bank as they have moved & have not been user friendly.
Would it be wise for me to transfer this money to Vanguard broker @ maturity ?
I do have another IRA worth approx. $25,000. that I have been taking my RMD yearly from.
Also have EE bonds worth approx. $40,000.
My total yr. income is $25,000 which includes the RMD.
Any suggestions would be of much help.

SAVAGE SAYS: I understand, and appreciate, your need for more income. But you aren’t going to get it, without taking more risk. That’s a simple fact — this is really what I call “chicken money.”? About a week before the CD comes due, go to, and search out — not the highest yields, but the best yields for banks in your city. I don’t advise wiring money to banks in some other state, even if the money is insured. Rate seem to be moving higher, and I’d suggest that you take a maturity no longer than one year. And since you can get a slightly higher yield for a large, $100,000 CD, I would suggest breaking it into two parts — $100,000 and $25,000. That will give you more flexibility for emergencies. And try to hang on to those EE bonds — they have a good base rate, assuming you bought them more than 10 years ago, so they are building value until they reach final maturity. Feel free to write back when your CD is maturing and show me the alternatives, and I’m happy to help you pick!



a personal
finance question