Moving IRA money to cash
Hi Terry, you’ve helped me before so I’ve got another question for you.
I’m wondering if I can take my IRA , now invested at Schwab Intelligence Portfolio in ETF’s and Closed end funds and convert them to cash and put them into an interest paying, insured brokerage acct with Schwab ?
I’m 80 and getting tired of the ups and downs of the market. I’ve got enough ( I think) other funds to last me. I know the interest is low but that’s not a concern. I’m more concerned about another huge loss in the market.and I like the idea of having my cash insured.
Just curious if I can do this. I wouldn’t be pulling any money out of the brokerage acct (IRA) other than the yearly distribution so there wouldn’t be any tax penalty. Which I’m not really worried about anyway.
Thank you.
Terry Says
You can call them and ask them to liquidate your investments and put the money into their U.S. government securities money market fund inside the IRA. They will do so at the close of business. As you correctly noted, there are no tax consequences since the money remains in the IRA.
Suggestion: Maybe keep 25% invested?? Just enough to offset inflation and the low rates in MM funds now. And so you don’t look back and feel like a dummy just in case the market moves higher!!
