FloridaJim57
Recycles dryer sheets
I have a traditional IRA with Vanguard. Can someone explain how I can transfer some of the funds in my mutual funds to CDs? Are there drawbacks, etc?
The only drawback is your money will grow at fixed rate. It may be actually an advantage these days when market is falling apart. But it quickly become a looser investment when market recover.
I have a traditional IRA with Vanguard. Can someone explain how I can transfer some of the funds in my mutual funds to CDs? Are there drawbacks, etc?
But, we don't know if, or when the market will recover, or from what level the market will recover.
Do you have a fixed income part of your AA? It serves a purpose. It's never a "loser" investment, because you put your money into it for a purpose, and that purpose is rarely to get the maximum return. What you are guaranteed (with the CD), is that it will not lose money - you are guaranteed to get your principal back and interest with no risk.
Yes that's correct except one thing: money are still lost if CD return is substantially lower than equities. But I agree CD need to serve its purpose i.e. a temporary shelter for money to use in near term for example.
I have a traditional IRA with Vanguard. Can someone explain how I can transfer some of the funds in my mutual funds to CDs? Are there drawbacks, etc?