We got out in May 2021. Yes, we lost out on the last couple of years of enormous gains, but interest rates were high enough to keep us okay. And sleeping well is important. I haven’t felt good about the market since we got out. I’m starting to feel better, all of a sudden and might move some money back in.
We got out in May 2021. Yes, we lost out on the last couple of years of enormous gains, but interest rates were high enough to keep us okay. And sleeping well is important. I haven’t felt good about the market since we got out. I’m starting to feel better, all of a sudden and might move some money back in.
I have an IRA, and unfortunately didn’t adjust anything before “Liberation Day”, so I guess I’m in for the long haul.
My financial guy also recently advised me to start a Roth IRA, and I just sent him 2 checks last week, one for 2024 taxes and one for 2025. I’ll probably still deposit the 2024 check for tax purposes, but thinking I should wait a while for the 2025 one until the dust settles…
You can invest the money and choose a money market account to invest in. That way you’ve taken advantage of the tax benefits but your money is safe. You aren’t going to make much of a return, but for a temporary place to hold it, it works.
Just a thought for you. Roth IRAs are betting on higher tax rates in the future, IOW when you are forced to cash out after age 70, the taxation will be a higher %. Paying taxes now and none later would be a good thing. However, your need for cash now is probably more than when you retire, and if tax rates decline, you are losing out with a Roth. It all depends on your needs.
We got out in May 2021. Yes, we lost out on the last couple of years of enormous gains, but interest rates were high enough to keep us okay. And sleeping well is important. I haven’t felt good about the market since we got out. I’m starting to feel better, all of a sudden and might move some money back in.
I have an IRA, and unfortunately didn’t adjust anything before “Liberation Day”, so I guess I’m in for the long haul.
My financial guy also recently advised me to start a Roth IRA, and I just sent him 2 checks last week, one for 2024 taxes and one for 2025. I’ll probably still deposit the 2024 check for tax purposes, but thinking I should wait a while for the 2025 one until the dust settles…
You can invest the money and choose a money market account to invest in. That way you’ve taken advantage of the tax benefits but your money is safe. You aren’t going to make much of a return, but for a temporary place to hold it, it works.
Thanks that’s a good idea
Gabe
Just a thought for you. Roth IRAs are betting on higher tax rates in the future, IOW when you are forced to cash out after age 70, the taxation will be a higher %. Paying taxes now and none later would be a good thing. However, your need for cash now is probably more than when you retire, and if tax rates decline, you are losing out with a Roth. It all depends on your needs.