| Would It Be Wise To Transfer My Trad. IRA Somewhere Else? |
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snapmacro
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Cash: $ 3.30
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Joined: 01 Feb 2007
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| Would It Be Wise To Transfer My Trad. IRA Somewhere Else? |
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I opened a Traditional IRA 2 years ago with $1500 sitting in there making 1% interest. I want to take it out and put it into a higher yielding Traditional IRA account. Can I transfer my account and are the transfer fees worth it?
http://decluttermother.wordpress.com/
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Thu Feb 01, 2007 11:58 pm |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
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Location: Illinois
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There should be no (or minimal) costs associated with transferring your IRA to a different custodian. Ask your present custodian if there are any trailing fees that would be applied in the event of your selling whatever security it is presently invested in.
Jim Blankenship, CFP®, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Fri Feb 02, 2007 4:22 pm |
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coaster
Senior Advisor
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Location: Wisconsin
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What is your age? If you're under age 60'ish, then you shouldn't be looking for yield, you should be looking for capital gains.
~Tim~
Eye Candy : Why Whimsy
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Sun Feb 04, 2007 12:37 am |
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Fern123
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With a 3% inflation rate, that IRA is actually losing you money. So, yes, move it somewhere else. How is that IRA currently invested? In a bank product I'm guessing?
Consider a mutual fund with a conservative, reputatble fund house like Vanguard or t. rowe price.
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Thu Jun 28, 2007 8:05 pm |
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efflandt
Senior Member
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Location: Elgin, IL USA
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1% sounds like one of those plans that tax preparers got in trouble for. Even money market funds pay around 5%.
If you figure out where you want to transfer it to, you can initiate the transfer from the new trustee's end. I cannot imagine they would charge you more than $50 or so to close out the old account unless they you got into a worse deal than it appears.
Whatever you do, do not have the old trustee pay you or a check in your name, because then they are required to withhold 20% that you have to add when rolling it over to avoid tax and penalty. There is no withholding with direct trustee to trustee transfer.
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Fri Jun 29, 2007 12:27 am |
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Sonoran
First Time Poster
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| Use Vanguard Index Funds |
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I think it's very wise to use a self managed investment plan for your IRA. Transfer the money to Vanguard and invest using a balanced mix of index funds. I recently read a book that opened my eyes and I've referred it to others. You might want to check this out. How To Invest If You Can't Afford to Lose by James Gleason.
The book explains how to create various portfolios that never lose money and produce returns that are excellent on a risk-adjusted basis. By all means, move your money into higher returning assets, but don't take on excessive risk. That's my opinion but it's based on many years of experience.
[edited]
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Tue Jul 24, 2007 2:52 am |
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