There are many of us in here retired and of that certain "golden age", so I was going to ask a question about IRA roll overs and wondered if it were even RV related. Well decided it really isn't, however I value a lot of people's opinions in here. I come in here for answers to more than just Rving, because experienced, real people, give real unbiased answers. I don't take them to the bank, but it opens up new windows for me to investigate further.
So here's my query, what is the best IRA to do a direct roll over to? Do any IRA's earn interest? Can you withdraw from them, how does the IRS get there 2 cents?
Thanks for any info, appreciate it.
Mods, I think this would be an interesting subject for a lot of us.
Since it really has nothing to do with RV'ing, I see no place for it on this Forum.
Besides that, you'd be MUCH better off getting financial advice from a professional than from a bunch of amateurs. Everyone's situation is different and requires individual attention.
And NO, I'm not (nor have I ever been) a financial advisor.
emzee wrote: There are many of us in here retired and of that certain "golden age", so I was going to ask a question about IRA roll overs and wondered if it were even RV related. Well decided it really isn't, however I value a lot of people's opinions in here. I come in here for answers to more than just Rving, because experienced, real people, give real unbiased answers. I don't take them to the bank, but it opens up new windows for me to investigate further.
So here's my query, what is the best IRA to do a direct roll over to? Do any IRA's earn interest? Can you withdraw from them, how does the IRS get there 2 cents?
Thanks for any info, appreciate it.
Mods, I think this would be an interesting subject for a lot of us.
not sure what you mean by 'best'. what are your investment goals? growth? safety? do you want to invest in stocks, bonds, CD's, mutual funds, precious metals (gold, silver), real estate? all of those things are possible IRA investments. about the *only* IRA investment i would avoid is an annuity. an annunity is a tax deferred instrument and to put one tax deferred instrument inside another seems silly...especially since one normally pays a commission to buy an annuity.
what are you rolling over from? how old are you? what is your risk tolerance level? will you need the proceeds from an IRA to fully or partially fund your retirement or will you not need to touch the IRA? the answers to those questions are important before anyone can advise you or answer questions. and that goes for people in this forum or if you walked into a bank and asked those same questions.
stocks, bonds, precious metals and real estate usually carry a commission to purchase. some mutual funds do also (called front end loading) but most mutual funds are 'no load' meaning there is no commission or sales charge to buy them. companies selling the investments are paid by charging fees that are either deducted from your IRA balance, by charging a 'back end load' when you sell your investment or by other similar means. if you want to do mutual funds studies have shown that funds which charge a front end load do not do any better, in general, than funds which have no front end load.
if you're rolling over it's likely from a 401k, 457b or similar plan. an IRA works in pretty much the same way as those plans but with smaller annual contribution limits. your contributions may or may not be deductible depending on your adjusted gross income for the year, the type of IRA chosen (traditional or Roth) and so on. and a roll over from a qualified plan (401k, 457b, etc) into an IRA is not considered a annual contribution.
depending on your investment and the condition of the market you're invested in you'll earn either interest or dividends. your shares in stocks, bonds and mutual funds will also increase or decrease in value again depending on market performance. if shares increase then you may also have long and/or short term capital gains. if invested directly in precious metals then the intrinsic value of that metal will rise and fall as will actual real estate. but you can also invest in precious metal and real estate stocks and/or mutual funds.
lots and lots and lots of options. also understand that withdrawls from an IRA must begin in the year during which you turn 70.5 years of age. you *may* withdraw from an IRA at age 59 but you *must* withdraw in the year you turn 70.5. you can contribute until the day you die but you must withdraw a minimum amount each year generally based on the value of your IRA/IRAs, your estimated life span and the age when you begin withdrawing.
there's lot to learn but it really isn't that complicated. check this link for a list of websites providing basic IRA information...IRA 101 if you will. do a bit of reading and then come back here with your questions.
good luck.
73,
rich, n9dko www.bananaboatbytes.com
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Very hard to MAKE any money in the current economic climate...if you can avoid loosing any, you are ahead of the game...
Savings, CD's, money market rates are horrible and real estate is not good either.
Nothing short term out there is really making much of anything..
You would be lucky to get 1.25% on a 15 month jumbo CD... but at least it's insured but not tax protected and will not out pace inflation.
Maybe look at a non-qualified annuity for 5 years..tax protected, very low risk and you can withdraw up to 10% each year without penalty.
First year interest rates with bonuses and bumps may be decent, but that's probably a teaser rate and it will most certainly drop from then on...to as low a 1%. But there are other pitfalls here too as rk911 posted above..
Best advice, find something that will at least protect your initial investment and weather the storm.
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emzee wrote: There are many of us in here retired and of that certain "golden age", so I was going to ask a question about IRA roll overs and wondered if it were even RV related. Well decided it really isn't, however I value a lot of people's opinions in here. I come in here for answers to more than just Rving, because experienced, real people, give real unbiased answers. I don't take them to the bank, but it opens up new windows for me to investigate further.
So here's my query, what is the best IRA to do a direct roll over to? Do any IRA's earn interest? Can you withdraw from them, how does the IRS get there 2 cents?
Thanks for any info, appreciate it.
Mods, I think this would be an interesting subject for a lot of us.
emzee, no offense but I'm out of my comfort zone on subjects like this! Wouldn't want to give someone advice that I thought was good and ended being bad. With me it's like my Winnebago which I like and have had good luck with. It would be a real disservice for me to tell someone to buy a Winnebago because I own one. What if there Winnebago turned out to be a lemon? I like your style in pushing the moderators! I see a PM from Johnny coming on this one.
rk911 wrote: ....your shares in stocks, bonds and mutual funds will also increase or decrease in value again depending on market performance. If shares increase then you may also have long and/or short term capital gains.
If you've rolled over into a self-directed IRA and you sell an asset in the IRA (such as sell an appreciated stock) there are NO capital gains. The proceeds simply become part of your income. I agree with Finally Fulltiming - get professional advice and don't take the advice of anyone here.
George
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A friendly forum, with members of all ages,& walks of life,,,,, great place to chat, ask questions, get great advice for everyone,.. Thanks to everyone,, especially "rk911" on this subject..,, Lots of members just want to hear general advice, maybe not exactly what each individual needs, but nice to just chat. Thats what great forums are for,,,
ps, if someone doesn't like the subject,,,move on,,,
Advice that cost you nothing, may end up costing you!!! !
Try the Escapee Forum, they have a forum segment for Finance and another for Insurance.
Poking around, IMO, some very good advice from some. Others kind of scare me... But as we all come from different perspectives, you could feel 180 the other way then I do.
Finding a 'For Fee Only' Financial Adviser (Not selling stocks, annuities, insurance, precious metals), could be another way to go.
Many Credit Unions, have affiliations with Fee Only advisers, as they are 'Member Non Profit' organizations.
I agree with the previous poster - I do not feel comfortable suggesting fiance moves for others. I sure don't mind trying to point them at things to consider, and areas to go research more - but especially with nephews and nieces, I refuse to ever say 'Do this, or that...' Want them to learn for themselves.
Rich, thanks for all the info. I did say that I wasn't going to get advice from here and take it to the bank. Just trying to get a feel from others in the same boat age wise as us. We are 60 and my dh has been more or less forced into retirement due to the economy. We are getting nothing in CD's as far as interest, might as well be in the mattress. This account we want to move is in stocks and I don't see them going anywhere but down. If we were younger we would ride the wave but at this point it looks like a long time before things turn around. No annuities for us either. My brother has been ok with his but in this shaky economy a plain savings account is safer.
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