i have 30k in an ira. It hasn't gone up, just down 10%. What should i do?

[Mortikhi]

do you think I should let it ride or cash it out, take the penalty and pay off debt?

Since it isn't going up and with inflation, it is getting less valuable as time goes on. Also, if I leave it there, it may become worthless if the economy goes the depression route.

If I take it out, I get hit with a 10% penalty and what...25% tax?

 

[torchbearer]

Ask a financial adviser.
NO telling what kind of advice you'd get on a public forum.

 

[Primbs]

You should really plan out your overall financial goals. If it is long term money, I wouldn't panic.

There is always the risk of inflation which is why investing in stocks or certain businesses over the long run will help you keep ahead of inflation.

Make sure you are diversified with no more than four percent in any one stock.

When the dow was near fourteen thousand some people sold out then. Now we are in the middle of a problem, where the DOW has dropped twenty percent already.

Definitely talk to a financial planner. But many financial planners can make mistakes too, so get several different opinions.

 

[Mortikhi]

Yeh I'm going to ask my advisor..just was wondering what people here would do

 

[pacelli]

Ask a financial adviser.
NO telling what kind of advice you'd get on a public forum.

Good advice right there.

 

[tmosley]

How close are you to retirement?

My first impulse would be to put it into silver since it is so low, but that's high risk in the current market (I'm a young guy, so I have a high risk tolerance).

Hell, you might take advantage of crashing mortgage market and pick up a nice little piece of land somewhere, and maybe a few rental properties. It all depends on your location and situation.

 

[Johnnybags]

I'll give you advice

do you think I should let it ride or cash it out, take the penalty and pay off debt?

Since it isn't going up and with inflation, it is getting less valuable as time goes on. Also, if I leave it there, it may become worthless if the economy goes the depression route.

If I take it out, I get hit with a 10% penalty and what...25% tax?

Roll it into a self directed IRA(ask your advisor) and buy agri land with it for Ron Stock 09'. Just kidding about that part but seriously, buy a rural plot with water, some farmable land and scope it out as potentially a self sufficient site. Southern exposure to sun, the whole 9 yards. My absolute best advice. You can also enjoy it now on the weekends and over time the value will only increase.

 

[rockandrollsouls]

do you think I should let it ride or cash it out, take the penalty and pay off debt?

Since it isn't going up and with inflation, it is getting less valuable as time goes on. Also, if I leave it there, it may become worthless if the economy goes the depression route.

If I take it out, I get hit with a 10% penalty and what...25% tax?

Never take your money out of an IRA. If it's down 10% you're not paying attention to it. Start investing wisely.

 

[rockandrollsouls]

How close are you to retirement?

My first impulse would be to put it into silver since it is so low, but that's high risk in the current market (I'm a young guy, so I have a high risk tolerance).

Hell, you might take advantage of crashing mortgage market and pick up a nice little piece of land somewhere, and maybe a few rental properties. It all depends on your location and situation.

It would be foolish to put the majority of that in silver.

 

[theoakman]

How close are you to retirement?

My first impulse would be to put it into silver since it is so low, but that's high risk in the current market (I'm a young guy, so I have a high risk tolerance).

Hell, you might take advantage of crashing mortgage market and pick up a nice little piece of land somewhere, and maybe a few rental properties. It all depends on your location and situation.

a few rental properties? He has 30k. That's barely a down payment for 1 rental property.

 

[Brian4Liberty]

Yeh I'm going to ask my advisor..just was wondering what people here would do

Beware! Most "advisors" are really sales people. Are you paying this person a fee to sit down and talk to you (like a lawyer or accountant would do)? If not, it's probably a commisioned sales person. Never buy loaded mutual funds or funds with high annual fees. Diversify.

See another thread on this today.

 

[icon124]

^ Going into the field myself I can tell you that MOST are salesman before actual advisors...also by just saying your down 10% isn't going to give us enough information...I would need to know pretty much everything about your IRA and yourself personally before I could give you any advice.

Since I don't and this is a public forum all I'll say is watch your advisor...and get many opinions.

 

[OptionsTrader]

Self directed IRA.

 

[rodo1776]

get into cash and work capital preservation

Any IRA gives you the option to be in cash or money market. Switch it all to cash and ride this storm out. Easy option. Only downside is if market goes up big after switching. Up side is you don't get burned on a meltdown which after today appears more likely. IMHO

do you think I should let it ride or cash it out, take the penalty and pay off debt?

Since it isn't going up and with inflation, it is getting less valuable as time goes on. Also, if I leave it there, it may become worthless if the economy goes the depression route.

If I take it out, I get hit with a 10% penalty and what...25% tax?

 

[tmosley]

It would be foolish to put the majority of that in silver.

Well, duh. I said it would be very risky, but it has a good upside, and would at least average out to match inflation, so he doesn't lose everything, no matter how bad the economy.

I put most of my money in metals (I don't have much, most of it goes to my business), but only because I'm so young that I can afford to start over easily. If I were 55, I would be invested much more conservatively.

 

[rockandrollsouls]

Well, duh. I said it would be very risky, but it has a good upside, and would at least average out to match inflation, so he doesn't lose everything, no matter how bad the economy.

I put most of my money in metals (I don't have much, most of it goes to my business), but only because I'm so young that I can afford to start over easily. If I were 55, I would be invested much more conservatively.

Incase you didn't notice metals haven't been moving to upside much. And, rule of thumb is the younger you are the more you risk in stocks.....metals aren't the place to maximize profit or "grow" your investment. Not only that, you should be diversified.

Case and point you don't know what you're talking about and I don't appreciate you lecturing to others on their finances when you could very well cost them money if they listen to any of your nonsense.

 

[theoakman]

Incase you didn't notice metals haven't been moving to upside much. And, rule of thumb is the younger you are the more you risk in stocks.....metals aren't the place to maximize profit or "grow" your investment. Not only that, you should be diversified.

Case and point you don't know what you're talking about and I don't appreciate you lecturing to others on their finances when you could very well cost them money if they listen to any of your nonsense.

who came up with this rule of thumb? Furthermore, metals outperformed US stocks for 8 years straight and will continue to do so after the current dollar rally.

 

[freelance]

who came up with this rule of thumb? Furthermore, metals outperformed US stocks for 8 years straight and will continue to do so after the current dollar rally.

No one except the talking heads. They scream that the sky is falling every time this happens, yet gold continues its generation bull.

 

[rockandrollsouls]

who came up with this rule of thumb? Furthermore, metals outperformed US stocks for 8 years straight and will continue to do so after the current dollar rally.

You don't know what you're talking about. I'm a believer in metals, but you're one of those nonsensical gold bugs that thinks gold is a profit maker like day trades. It's simply not the case. Metals save purchasing power...if you're looking to grow, especially if you're young, a portfolio invested heavily in metals isn't for you. Different portfolios have different goals, and typically, if you're younger, your goal is to grow your money.

Listen, I don't need some nobody with no financial experience trying to debunk common knowledge because they read Schiff's book and suddenly think they are financial experts. Talk when you're makin' more money than me, buddy.

 

[angelatc]

Yeh I'm going to ask my advisor..just was wondering what people here would do

I'd leave it alone.