Where to put 75,000 that is now in IRA cd
Hi Terry — I did ask this question a few weeks ago but you may not have received it.
I have 2 IRA CDs with DISCOVER. One is maturing after 2yrs in August. My son thinks I should open and put them in a money market account . My current financial situation is I own a condo worth 500,000 no mortgage . I live off my SS $2768.00 monthly and an Anuity payment of 1300.00 monthly. I do have a HELOC for 100,000 that I use occasionally for emergencies . I am turning 80 in August.
Thank you —
Terry Says
It sounds like you don’t want to take any risk with this money — true chicken money!
But you should check for the best rate on CDs — getting nearly 4% now on a 6-month CD.
Now, there should be no penalty for “breaking” a CD if you need the money to take your required minimum distributions, assuming you are already 73.
But if you are 73, and subject to RMDs, then you might put some money in a money market fund, and the rest in CDs.
Just be very careful if you are switching banks to do this. You’ll want to do a ‘direct rollover’ into a new IRA account at the new bank. Or you could be exposed to taxes on the move. Your new custodian bank will help you make the move.
