Quote:
Originally Posted by tcxr750
With the stock market moving down and your instinct being not to make withdrawals, just remember if you have a conventional IRA and you are 70 1/2 you are required to make withdrawals wether you want to or not.
That means that RMD is going to take another bite out of your IRA in a down market.
Example: 4% RMD and 1% management fee add to the losses in valuation of you IRA.
Any thoughts about a ROTH IRA?
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A simple idea to find someone you can trust. Unfortunately it is far easier to say than to do. Most financial advice comes from someone trying to sell you something.
Required Minimum Withdrawal. NO ONE WANTS TO PAY TAX.
But, we lived in NY when I was earning the money. Money I put into an IRA, actually a SEP IRA allowed me to put away more than the original $2,000 limit. The deal was, save now and pay the tax later. As ex NEW YORKER'S, b moving to Florida, we escaped ever paying a 6% state tax, a 3% city tax on top of my higher than now federal income tax-I'm in a lower fed tax rate.
Oh and not certain but I think I also escaped the 13% I had to pay into social security.
I am not qualified to advise but that stated 4% RMD and 1% management fee. The percentage, your stated 4%-I'm not sure that is right or wrong. It goes up percentage wise as you get older. As I understood it you are supposed to expose your entire IRA to tax due to forced withdrawals by the time you reach 100.
Being a bit of a wise guy I told them they could keep xxxxxxxx if they will guaranty I live to 100.
If, you are paying 1% for someone to manage your IRA. You may want to check to see what the TRUTH is. If, you are paying 1% in total fees that may be reasonable. If, you are paying someone 1% to pick investment funds for you, you are paying twice. Once to the 1% person and then again you are paying management fees to the fund.
It is mind control by EXPERTS. If, you have a stock fund or whatever. You made 10% on it in ??????? and the management fee is 1%. Same number stated differently. At 1% they are taking 10% of what you made by risking YOUR MONEY. In a down year. Reminder the stock market goes down some years.
YOU lost say 10% so your return is minus 10% they still will take 1% of the total you have in that fund. Actually today, unlike in the past, the return they show on the fund is after the fees.
As, to shoulda coulda mighta. Hindsight is always 20/20. The best place to have had your money in 2018 was CASH. Right now you can get about 2.5% in the money market You can get free checking with that.
TAKE NONE OF THIS AS ADVICE-I JUST TRY TO POINT OUT WHAT MANY DO NOT SEE