Market money — how to move to safety
My wife and I are 81 and have most of our money in stocks and mutual funds($950,000.) I want to be more safe. Where should I place our money at this stage of our life so we would not have to worry about a severe downturn?
Terry Says
You’ve had the benefit of a great bull market to build your wealth. At this stage, it’s time to protect it.
If you have long term gains in some stocks, you might want to hold them — or sell now and pay a lower capital gains tax than likely will be the case next year. (Under current law, if you die owning those stocks, your heirs would not pay taxes on the gains; their new cost basis would be the value on the date of your death — called the “step up” basis.) But that is likely to change too.
It’s pretty easy to just go online or call the 800 number of your mutual fund company and say you want to sell half of your shares and move money to a money market mutual fund. You won’t earn much interest, but you won’t lose a penny! However, if those mutual funds are NOT inside an IRA, you will have to pay capital gains taxes on your profits. And if you take big gains, it could increase your tax bracket for next year AND the cost of your monthly Medicare premium.
This is why you need a professional that you can trust to give you advice — not a broker or someone who makes money every time you buy or sell. You need a fee-only FICUCIARY who will give you advice you can trust. They can also give you the tax implications. And they will ask you additional questions about your estate plan, powers of attorney etc.
My suggestion is to go to www.Wealthramp.com where you will be personally connected with a carefully vetted fee-only FIDUCIARY financial advisor.
