I think you're being afraid, which is different from being dramatic. As for stupid, moving your money into an account paying 2.75% seems like a stupid move when you could put that cash in a money market fund or purchase short-term Treasuries paying 4%+.I'm in my 50's and currently have around 600k between a Traditional and Roth Ira on Vanguard. I've been a bit worried lately about the economy collapsing [unnecessary comment removed by admin LadyGeek]. My thinking is that I could simply sell all of my holdings and let the cash sit there in the settlement account. According to what I see on Vanguard, doing so would not count as a distribution so there would be no tax implications or penalties. The current interest rate of the settlement account is 2.75% so while it's not anything great, it's better than losing a bunch of money if my fears are realized. Once I felt good about things, I'd buy back into the funds I currently hold.
So, am I just being dramatic or is this something that sounds reasonable to be considering? Please don't make your replies political, I'm not here to debate politics or try to start a fight.
Thanks!
Looking at 20-year periods starting on Jan 1, there has never been a 20-year period in which the S&P 500, with dividends reinvested, has failed to beat inflation as measured by the CPI-U. No guarantees that this record will hold into the future, but if you're not going to need X% of that 600K for the next 20 years, leaving that portion of the money invested in the market seems like a better bet than the path forward you've laid out.
Statistics: Posted by YangtzeCruiser — Sun Jan 12, 2025 5:45 pm — Replies 125 — Views 10510