Mom’s retirement account
Hello Terry, Thanks for all you do! … When Covid hit I moved $50,000 of 86 year old mothers Morgan Stanley IRA retirement account from market traded to intrest bearing within the IRA. I left $10,000 in to continue to be traded, it has preformed well. I feel as if I have errored on the side of caution for the following reason. Her IRA account was a grandfathered free traded account,to buy back in a 1.2% fee is assesed. The $10,000 is not subject to the buy back in fee. She is in good health and does not need of the money at this time. Should I choose to reinvest the $50,000, is there a better option? I’m not sure a wealthramp advisor would be necessary for this amount. Thank You!
Rich
P.S. Always look forward to you on WGN Radio, especially when you host!
Terry Says
You don’t say how far from retirement your Mom is, but in any case if you are old enough to be giving her advice, she should be reasonably close! And I’d say you made a good, conservative move on her behalf — even in hindsight. A year ago at this time the world and the markets were going straight down. No place for speculation or losing a good portion of a retirement fund that would be needed relatively soon.
But now, if you want to reinvest her IRA, I would definitely not pay that kind of fee. Instead, roll the cash part of her IRA to FIDEITY. They will help you do it. YOu can maintain the$10,000 in the original IRA> And by the way, tell Morgan Stanley that you’re going to move the money. If they are smart, they will waive the fee and allow you to reinvest. If they are totally dumb, they will tell you to take the $10,000 along with the rest of the money! At Fidelity there will be no fees.
Just be as conservative now with your Mom’s money as you were then!! From my perspective, the stock market is equally risky today.
