Roth IRA

[PH-2]

I continue to watch this retirement fund dwindle. I have a meeting on Wednesday with the family's retirement fund financial adviser, and I am seriously considering cashing out and investing the remaining funds in "tangibles".

I am even thinking this may be an opportunity to finally buy in on a Registered Magnum, or two, or three.

What are you folks who have Roth's doing with them?

Mike

 

[judge]

I have a Roth, and I am increasing the balance every year. I do not look at the balance next week, next month, or next year. You have to look down the road about 10 years & hopefully you will reach your goal. If a mutual fund drops in value, I look at it as "on sale" - you are buying shares at a lower price (dollar cost averaging). The big advantage of the Roth is it grows tax-free & when you draw down it is tax free. If you die, your family gets the money also tax free. Hard to beat that.

 

[HEAD0001]

I switched my standard IRA to a ROTH IRA many years back. And paid the taxes on those transfers. It was one of the smartest financial decisions I have ever made. By making all my earnings tax free.

I also made my ROTH IRA a self-directed IRA. I do all of my own research, buying, and selling of stocks. Or whatever assets I prefer to buy(obviously not guns).

I don't trust anyone else to handle my money for me. IMO every single financial advisor has their best interest in mind, especially over my best interest. And I will not allow another person to determine my long term financial status-especially when that person has their interests in mind first. It simply does not make sense.

The financial institutions are making so much money that it is not even funny. And where do you think that money comes from?? It comes from the minions that blindly send them money every month.

Personally if you are not capable of directing your own account then I would simply not play their game. There are other options where you can at least hang on to your own money.

If nothing else, then simply buy LAND!! Tom.

 

[bobelk99]

IRAs are not short term (I hope).

Leave it alone, and quit doing 'daily' watching.

 

[Steve in Vermont]

As important, and in some cases more so, is to put yourself in a financially stable position. That means don't buy more on your credit card than you can easily pay off each month. Pay off your mortgage as soon as possible. Keep enough cash on hand for at least 6 months of expenses. As far as investments go, generally the higher the risk the greater the return, hence the lower the risk the more stable the investment. Which to choose? A good rule of thumb is to ask what kind of person are you? To answer this, ask yourself: Do you worry about your investments? Do you wake up at night or constantly think about them? Does a market swing of say a 20% loss in value bother you? Will you most likely need that money in the next several years? If the answer is yes, you need to move into something more conservative. When you get to the point you can go for weeks without thinking about them, that's were you belong.

 

[PH-2]

I do not use credit, I only review the Roths when the statement arrives. These statements have lost money for four straight years.
The Roth isn't the only "egg" in my retirement basket, need to do a little shopping. Tom, your "land" suggestion seems solid, they sure aren't making anymore of that in my AO!

Thank-You, all, for your input.
Mike

 

[Faulkner]

I think short of a total economic collapse, now is the time to be buying, not selling out.

 

[doublesharp]

If you like action, take a look at Frontier Communications. FTR. Pays 12% div because the stock price is beaten down. Rural broadband is their niche. I'm in pretty deep but only with money I can afford to lose. But you can bet I wouldn't be in it at all if I thought it was a loser.

 

[maraba]

I continue to watch this retirement fund dwindle. I have a meeting on Wednesday with the family's retirement fund financial adviser, and I am seriously considering cashing out and investing the remaining funds in "tangibles".

I am even thinking this may be an opportunity to finally buy in on a Registered Magnum, or two, or three.

What are you folks who have Roth's doing with them?

Mike

.

You are very likely to incur tax penalty if you cash out roth ira before you turn 59.5.

 

[Pete99004]

.

You are very likely to incur tax penalty if you cash out roth ira before you turn 59.5.

True if he does the cash out route - but the OP is self directed on his fund so he can transfer into other areas including real estate, gold, silver etc. There is no limit as long as they are classified as legitimate qualifying investments. Might be tough to get collector firearms done but if he tried hard enough and can show intent - might work. I'd get something in writing from the IRS before I did it.

Pete

 

[Engineer1911]

My S&W Utilities and Municipals have not paid a single dividend, gone up significantly in value, or LOST 10¢ IN VALUE. My stock portfolio is a roller coaster that I stopped watching too closely. I bought "sound value securities " and now am waiting for the 'long term gains '.

 

[sourdough44]

Diversity is key, work towards a mix that's right for YOU & your time horizon. If you have 401k type options go with those 1st(Usually, with reasonable or better investment choices/expenses). I lower my taxable income as much as possible. Then there's the FSA, at just the right level & a tax friendly 529. Throw in a charitable deduction here & there & we're on our way.

My friend has accounts outside of the IRA/401k/529 & other umbrellas. Here he is paying in all the time to even out gains(hopefully) on some of these accounts. Yes, I realize a tax return(if any) are tied to withholding throughout the year. I'm talking more about overall taxable income, deductions, & one's 'real' tax rate. Yes, we have pre-tax $$ & other post tax that can grow tax free.

Don't wait for help from Wash D.C. for tax relief, you'll be waiting your whole life. There it is right in front of you.

 

[The Highlander]

Roth is one of the only legal ways to make money tax free. Don't cash out, buy. And stop looking at your balance every day.

I didn't sleep at a Holiday Inn Express last night, but I am a retired Financial Adviser.

 

[tripledipper]

Converted from traditional to Roth when you could spread out the tax over a couple of years. Non-speculative investment which continues small growth, probably will leave this alone and pass it on. Got out of the stock market a long time ago. I'm boring but don't lose money or sleep.

 

[vytoland]

I do not use credit, I only review the Roths when the statement arrives. These statements have lost money for four straight years.
Mike

if you have truly lost value in your account 2008 - 2011, you need to take a closer look at the content of your portfolio.

2008 was a looser, 2009 & 2010 were on the up side. 2011 hasnt been great.

 

[mtgianni]

if you have truly lost value in your account 2008 - 2011, you need to take a closer look at the content of your portfolio.

2008 was a looser, 2009 & 2010 were on the up side. 2011 hasnt been great.

Absolutely correct. You need to find a new financial adviser, whether it is you or someone else, get a new one.