Retired and current retirement funds
I’ve been an investor with my head in the sand. I meant to move my small amount $$$ into Treasury notes /bonds that you have many times mentioned. Of course I’ve lost 20%, now what do I do? I’m 75 and have a good monthly pension.
Terry Says
Ugh — not knowing where the money is currently invested, it’s difficult to give advice. Is this money inside an Individual Retirement Account? Is it your only savings outside your pension?
I have no idea if the market will rally on good news, perhaps of some trade deals.
But in your situation I would move half into a money market mutual fund, staying INSIDE your IRA if that’s where the money is. There is not tax on the sale, as eventually you’ll be taking this money out of your IRA as ordinary income, and paying taxes then.
If it is NOT inside an IRA or other retirement account, you’ll have to consider whether you have a gain — from the date of purchase. If you still have a large gain, that might impact your tax bracket — so ask your tax preparer first.
But selling half means you’ll only be half wrong — or half right! And you’ll sleep better!
