IRA Rollover Question

[street]

I have a Non taxed IRA that I'm going to move/transfer that IRA to a new company. The process will take about two weeks to complete.

I'm doing this move just to make it easier for me and to have this account closer to my family etc..

I will be investing in Mutual Funds with the new company and I see they have a money market fund. It doesn't pay much but wondering if I should take advantage and stick some of those funds in that MM account.

My reasoning for thinking that way is leave some of it in MM and if things start the market starts to tank I could bought more of those funds as a discount.
Please let me know what your thoughts are doing that.

 

[street]

I hope a get some feedback opinions on this subject. I'm actually a little nervous till they have the check and I get thing invested and squared away with fund picks.

Any help suggestions if this would be a good idea, to put those funds in a save MM in an IRA mutual funds and wait and see what happens with markets. One thing if I put it in MM I won't lose anything from market fluctuation and can always buy into new funds.

I don't plan on taking any of this money till RMD time which is 10 years away.

 

[RetireBy90]

My suggestion is to stick with you asset allocation. That is the prudent thing to do. So if a 60/40 stocks/bonds is your planned AA then use 60% to but stock fund and 40% in bonds and cash.
Having said that, I have an AA I try to stick to but also have a small pot I try to time the market with. I don’t mess with the AA of the remaining funds except to rebalance. I also have a MM with 2 years of spending outside of my AA that I replenish when needed so I don’t have to sell in a down market for my expenses.
I find that having the small portion in my market timing account let’s me play but keeps the remainder in AA balance.

 

[scrabbler1]

You have to weigh the cost of not investing in something which may return better than a MM fund versus basically keeping some money on the sidelines in a MM fund. And you have to guess the right time to get back in, something which would require a crystal ball.


Back in late 2008, when the markets were tanking, I left my company and did a direct rollover from my 401k into a tIRA. I didn't want my 401k funds to sit in a MM fund, earning nearly zilch, while I guessed the right time to get back in. I had an AA in the 401k which I maintained when I did the rollover. The markets kept declining into early 2009 but then recovered, and pretty quickly. So, I lost a little bit for a few months before gaining a huge amount later in 2009 (and ever since).

 

[Spock]

Nobody can really tell you what to do because each situation and temperment is different.
Your situation depends on things like your total assets, size of emergency fund (if you're fired tomorrow, are you retired or do you need to find another job?) etc.
Temperament goes to your amount of risk taking vs. ability to sleep at night when the market tanks.
Personally I went all cash (MM, stable value fund, CDs) in January. But even then I had a very small stock position. As a lean fire I can't stomach big down drafts in the market and I'm fairly risk averse to start with.
So if it were my money, I'd be putting it into a MM (option you listed) at least until things "stabilize". You might miss a big rise. You might miss a big fall. Welcome to Casino De Wall Street.

 

[street]

Some solid advice, and yes it is my decision at the end. It is nice to hear what others ideas are simply, if I have missed something or not understanding of what or might happen and I'm always trying to do it right or best way. Years I never knew or even thought much about investing but did save all I could afford too. So, I'm very raw when it comes to savvy or knowing what to do in financial situations.

As far as needing it I may never use it for myself and will be left for my wishes after death.

 

[street]

I know there is only so many options that I have the roll over. With the down turn in markets wasn't my timed plan to move this fund. I was hoping to move from IRA to IRA to be having that move when markets where better.
So, it will be maybe next week when I will have to make the decision to throw it all in mutual funds at better prices to buy in or place money in a MM within the IRA accounts and wait for lower markets.
I'm at a lose what to do wish would be best. I can see why trying to time would be a difficult and mixed results at best.

 

[street]

Update on my delemia.
After hearing about the oil market trade war last night, I got on the phone this morning and stopped the transfer of funds. It would of happened today after the the close of markets. I did dodge a bullet and will let things calm down, before attempting this move again. I am just staying the course and going to weather the storm for now. You don't know how glad I was to get the event from happening.