Retirement in stocks and mutual funds?

[speckledhen]

Quote:
Can you transfer it into Money Market or CD Accounts?

I think it depends on whether you need it now or in the next few years.

We transferred ours into MM a few months ago.

We have that Vanguard 2015 acct, started in Aug 2004. Had it in a CD for a year before that and decided to put it in something that would possibly earn a bit more than a CD. Now, I'm thinking we should put it back in a CD, to "hold" till things turn around, IF they do. My DH is 55 now, so wont be too long before we need it.

 

[mtnhomechick]

Quote:
Can you transfer it into Money Market or CD Accounts?

I think it depends on whether you need it now or in the next few years.

We transferred ours into MM a few months ago.

We have that Vanguard 2015 acct, started in Aug 2004. Had it in a CD for a year before that and decided to put it in something that would possibly earn a bit more than a CD. Now, I'm thinking we should put it back in a CD, to "hold" till things turn around, IF they do. My DH is 55 now, so wont be too long before we need it.

It's just my opinion but I would rather preserve principal right now.

It irks me that the gov't can meet behind closed doors and take out big institutions like Bear Stearns, Lehman Wamu, Fannie, Freddie, and Wachovia... and the stockholder gets zero while our financial institutions are being socialized.

These are exactly the kinds of stocks that were considered to be core holdings in many portfolioes.

No wonder there's a lack of confidence.

Right now I am a huge fan of cash.

Additionally, the market is an indicator of the economy 6-12 months out.

I think most of us can see that the economy, independent of the Market.......just looks bad right now.

I have a feeling there might be a bit of a bounce tomorrow.......but I don't expect it to last IF it happens.

I think you can transfer with a phone call and it takes effect the next day.

It's hard I know.

 

[Ellie]

Hey Cyn,
Just my two cents, but if you take it out now you lose some but if you leave it in, it will grow again.... always has.... just takes time.

But the bank advisor will be way smarter than the likes of me.

 

[speckledhen]

mtnhomechick, thanks so much for your input. I hate to take out the principal and take the tax hit; seems better, if we are going to move it, to protect it in a CD. Sure wish it would bounce back up a bit before we meet with the financial guy on Friday...I hate to actually lose what we started with! Ellie, I doubt we'll really take it out, but I'll let you know what the guy says after we meet with him.

 

[mtnhomechick]

Quote:
I wouldn't be surprised if it did bounce back a bit. Most days lately it's 3 digits up or 3 digits down OR both in one day!

Just read where 2 Trillion of retirement funds have been lost to this market turmoil.

I try to look at it like this. If I can preserve capital I can use it someday down the road when I can buy good stocks for maybe 25 cents on the dollar.

Or in your case........property at a discount if that's what interests you.

Even if you've lost some..........the balance may have more purchasing power down the road.

Your very welcome and good luck.

 

[Mahonri]

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If the market goes up tomorrow, that will be the time to make your move... you take it out and ROLL IT OVER into a CD... that way you don't take the tax hit now.

Unfortunately, I'm afraid we'll lose a little more tomorrow. I hope I am wrong.

 

[3 sisters farm]

Well my retirements are mostly with AIG and Wachovia, Wamu has some too and my mortage....fortunately some is also in bonds and CD's...I'm still young and really was irking the banking guys...but at least I still have some.

 

[rufus]

Thinking about the "bail out," my wife used to work in banking for about fifty years. She says that a lot of the investors that bought mortgage packages are in the middle east and the far east. I sure hope our money isn't saving their bacon.

Rufus

 

[Mahonri]

The Nikkei took a 9% plunge... Europe to follow.

We could easily go down another 300 or more points tomorrow.

Welcome to THE great depression. We are almost as bad as 1937... big difference is there are so few folks who are self sufficient now compared to then. My dad lived off of the farm... so did my mom. We are no longer an agrarian society.

Buy some seeds and dig up some dirt folks... you may need it.

 

[PurpleChicken]

Quote:
This is nowhere near the great depression that so many here love to point out.

To begin with the government is bailing out the banks. People have access to their
deposits in 99% of the cases. The FDIC didn't exist in 1929 when the market took
a plunge which started the run on banks. A huge percentage of the population
lost their life savings. Again, that isn't the case now.

The markets are taking hard hits but the volume is still there.

People are still receiving their Social Security checks that didn't exist in 1929.

Unemployment is at 5%, not the 33% it was in the 30's.

Pick up some seeds and dirt? We are going into winter. How will that help?

You are correct we are no longer an agrarian society but we weren't in the 30's
either. Granted, there were a lot more small farms back then and backyard gardens
in addition to people who canned foods and had a years worth of supplies in thier
basements.