Home Forums Hunting & Shooting Hunter's Campfire Dumping an IRA with an 8% loss in the last 2 years, for 5.1% 1 year CD's?

21 more months of this admin. ? Maybe should have done it sooner., but not real savvy about these moves. I'm fuqking 69.

Shoulda bought Bitcoin.
LOL

It sounds like you are going backwards. Did you IRA pay dividends ??

kwg

Embarrassingly ignorant about all this. Had a 401 with med risk that changed to due to my age & retirement. Pretty much loosing value since Biden.

Now, same place Edward Jones offering 5.1 CD's, local bank as much as 4.5. Seems like a no brainer to ditch loosing stock. Investing never one of my strong points... pile some cash, buy guns, let the stocks ride. Now they ain't riding so well.

Nobody can advise you well without knowing your entire situation. Market timers usually lose. Make your decisions based on where you are, not where you were. FWIW, My risk tolerance at 69 will be lower than it is today. Professional advice might be a good idea, but tread lightly. Lots of sharks masquerade as financial planners.

Don’t know enough to give advice, but I can say with 100% certainty that right now it’s a paper loss and it doesn’t become real until you cash out, and that real inflation is WAY above any CD rate you’re going to get.

self manage your 401k

look at dly, dsl, some good dividend stocks. mmp, epd, et, bsm, mplx, epr., trmd....I just bought nycb when it dropped to 6,

many other options out there. look for good dividend stocks. diversify

I was typing when you posted this. Still lots of unknowns. Do you have debt? How much does it cost you to live? How much SS and other income do you have? How big is your nest egg? Will you or your spouse live to 100? And what’s important to you? Even lots more questions. That’s why a GOOD adviser is worth his fee. One who just sells stuff is worth less than zero. Best wishes in your retirement.

Edited to add: Ignorance is no shame. Just don’t stay that way. For a fun and enlightening read, pick up a copy of “Personal Finance for Dummies “ Learn how to make good choices. Nobody will care about your money as much as you will.

Also be careful of risk advice.
Was doing research,trying to learn more about managing my own accounts.
One thing quickly became apparent.
Most advice is geared toward people who are well above us in wealth.
Everyone wants to be middle class.
Folks on the poverty line to doctors.

The advice is often geared to the doctors.

I was shocked at the risk often advised for retired folks.
If you are funded in the millions, you can put 50% in high risk and only pull from
Stable investments when the high flyers dive.

If you have a few hundred thousand or less, you will be forced to withdraw from
high risk stuff when it is down. Rapidly depleting your nest egg.

Thinking I'm grasping & understanding kind words given here. Thanks. Just thinking about my own mortality & all the crap that's goin on. And on, for another 22 months or more?

I'm 69 and have traded only a couple of times in the last 30 years. I buy stocks that pay dividends and I re-invest those dividends. It has been down and up depending on who was the president but It always goes up after we get rid of the democRAT. I will not sell anything until I have to take my minimum dispersant in about 3 years. If you are lucky you can roll those CD's over and continue to get 5% or more until you have to start taking any minimum dispersments.

Nothing is riding well except for the CD's right now. I have some extra cash so I'm thinking about using that for CD's but the IRA's are going to ride. If we get a republican in the Whitehouse in 2024/25 I expect a jump in my IRA's. Just in time for me to start taking them out.

kwg

No debt here, SS covers all our bills plus wifes clothing & my gun habit. A few other small backups in place. Bare bones country livin here. No world tours anticipated.

But the 401, so small it's embarrassing on a national scale. But still hate to see it raped that's all. Advisor gives me canned answers as to when the market will be up. Just thinking he's optimistic.

Embarrassing? You’ve got the American dream. Paid off house, bills covered with some to spare. You live in the greatest country the world has ever known. Work on staying healthy and live a long life. Keep some funds put aside for emergencies and invest the small 401k fairly conservatively. Lots of retirees wish they were in your shoes!👍

At the risk of sounding knowledgeable here,

First you’re not alone in this recent downturn, so don’t beat yourself up too badly, I’m down 40% on a few recently purchased stocks,

Meaning, I understand your question, will those stocks rebound soon enough, or sell at a loss, take the tax break and reinvest in vehicles a little more stable and sparkly, Ie, Ibonds and CD ladders, Todays CD rates @5% are certainly attractive, We haven’t seen those rates in about 15 years….

First thing that comes to my mind in your situation, If you cash out, what happens in one year when that CD expires?

Where will CD rates be then, higher or lower? Where will the DOW be in 12 months from now?

I know what I would do if I were you, (hold) but not enough details here,

Your entire IRA is down 8% or only certain investments in that portfolio?

Not a bad idea to sell a few dogs now and then at a loss, I’ve done it myself.

If you cash out now, and the CD rates are lower next year, then what?? What position would that put you in?

Do you need that interest to help pay the bills?

Truth about the Market is, No one knows, It’s all guesses.

Your down 8% the last 2 years, many did way worse.

Can you over look the last 2 years and instead focus on the last 10 years?

Much rosier picture that way.

Citigroup’s Preferred's are running at 10% while other large banks’ Preferred's are in the 6-7% general ranges.

Watch the possible risks that may be involved.

I'm ready to put some money into CD's. I just don't want to be fully invested, even with a diverse holding, in the stock market. I may not make as much but I want to be more risk averse at this point in my life. I'm still putting a healthy amount monthly into the 401K.

I'm also investing in a Fidelity fund with my "hobby" Roth.

I'm 53, met with an advisor a few weeks ago.
He liked my fund balance, I ask about starting to move to a less aggressive
profile. I plan to move some of the high risk money when the markets
boom again. Pull out when everyone is loving it.

He laughed.

"It is really that easy.
Plan 10 years out, move out when everyone wants in."

If you only lost 8% PTL.

You made money compared to what most here will do.

What do you think about tbills right now?

Met with my Fidelity guy yesterday. All is fine and the move from traditional to Roth IRA's will commence in November. Also opened a college account for #1 grandson.