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11-20-2008, 12:03 PM
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52 posts, read 589,207 times
Reputation: 124
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I have a Vanguard IRA account and a 401K account, both have index funds in there. I don’t want to lose money any more. 
How do I take out the money and put it in an IRA CD account?
Thanks. |
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11-20-2008, 02:32 PM
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Location: Texas
4,937 posts, read 7,159,801 times
Reputation: 5512
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If things get as bad as I believe they are going to get, a CD isn't going to do you much good. The government will nationalize your assets within a couple years. Depending on the amount of money you have, I'd look into rural real estate. Purchase real tangible assets that will help you pull through the hard times ahead.
On a side note, if you think the market is heading further south, you can purchase an ETF (exchange traded fund) that inverses (gains value) while the Dow continues to fall. DXD does this for the Dow index and SDS does this for the S&P 500 index.
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11-20-2008, 02:33 PM
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Location: Yootó
1,305 posts, read 3,377,751 times
Reputation: 809
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Quote:
Originally Posted by helenocean
I have a Vanguard IRA account and a 401K account, both have index funds in there. I don’t want to lose money any more.
How do I take out the money and put it in an IRA CD account?
Thanks. |
If you have something like a stable asset fund, that would be safer, BUT, if you remove it now you will not get it back. I would advise riding it out since you didn't get out earlier. |
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11-20-2008, 02:36 PM
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59,596 posts, read 46,516,177 times
Reputation: 36946
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Quote:
Originally Posted by helenocean
I have a Vanguard IRA account and a 401K account, both have index funds in there. I don’t want to lose money any more.
How do I take out the money and put it in an IRA CD account?
Thanks. |
Insufficient information. How old are you, what are your goals? Be wary of selling AFTER a dip.
Tex, if we believed what you posted here the advice to her would be to cash it all in, buy guns and convert to the practical religion of cannibalism.  |
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11-20-2008, 03:31 PM
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52 posts, read 589,207 times
Reputation: 124
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Thanks for the reponse.
Here is more info:
I still have an active 401K account with my current employment that I put in 5 percent plus company's matching.
The IRA and 401K accounts I was talking about are not active (no deposit any more). They are from my former employemnt and when I had no 401k.
Can I open an IRA CD account with a bank, then transfer the money from my vanguard accounts to the CD account?
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11-20-2008, 08:48 PM
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Location: Keller, TX
5,674 posts, read 5,589,527 times
Reputation: 4093
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Quote:
Originally Posted by helenocean
Here is more info:
I still have an active 401K account with my current employment that I put in 5 percent plus company's matching.
The IRA and 401K accounts I was talking about are not active (no deposit any more). They are from my former employemnt and when I had no 401k.
Can I open an IRA CD account with a bank, then transfer the money from my vanguard accounts to the CD account?
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You can open an IRA and do a Transfer of Assets from the IRA to the bank. You can roll over the 401K.
Many brokerage firms have available a large selection of CDs which you can buy in an IRA. A CD is not your only choice. Look into bond funds as well (government bond funds -- I'm not so sure about corporate bonds right now and muni bonds would not be appropriate for an IRA). I'm not certain what options Vanguard offers in its retail IRA accounts, but you might be able to keep things at Vanguard, roll over the 401K to the IRA, and put everything into a bond fund, CD, from the existing IRA.
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11-20-2008, 09:19 PM
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Location: NJ
2,111 posts, read 7,484,358 times
Reputation: 1018
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Quote:
Originally Posted by helenocean
I have a Vanguard IRA account and a 401K account, both have index funds in there. I don’t want to lose money any more.
How do I take out the money and put it in an IRA CD account?
Thanks. |
Go to the bank where you want to take the CD out and tell them what you want to do. Have your info with you. They will fill out a form to do a direct transfer (rollover) for you.
You can also take a distribution direct to you from where your money is invested which is easier. You have 60 days to roll it over into an IRA (CD). Then invest it the way you like. It gives you time to shop around for a good rate. |
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11-21-2008, 02:03 PM
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28,461 posts, read 76,435,588 times
Reputation: 18552
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Some decent advice and some pretty funny replies above, but the reality is that before you move out of anyplace like Vanguard or Fidelity or whatever you really have to ask yourself what you want to accomplish. Obviously NO ONE WANTS TO lose money, but being OUT of the market when it does stop dropping is NOT going to be smart.
Basically all the fund family have a "stable asset fund / money market" option that you can shift your money into. Typically these things pay very pathetic interest, rarely more than 3% or so. While it is true that right now that is better than watching index funds lose 5% or more per WEEK, you have to realize that unless you are very close to retirement that you will have to move back into SOMETHING that grows. If you move into a CD what term will you select? Basically all you need to do is go to bankrate.com and you'll see that it really makes little sense to even lock the money into a 5 yr CD as the premium is so pathetic over just moving it into the fund family MMA/stable asset fund. From a stable asset fund you can move BACK to any sector or an index when you have evidence that things are going back up. And it will be MUCH MUCH faster than trying to get back into a fund from "outside".
The statistics on people that successfully take a "direct transfer" and then reinvest w/o penalty are NOT encouraging. Unless you are exceptionally committed to being on top of things I would really hesitate to do anything other than move into a stable value fund. Even then, you really NEED to be committed to moving BACK into something that will grow!
Of course, you could just cash in, fill the house with guns, MRE's and ammo and prepare for Armegedon...
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11-21-2008, 03:33 PM
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Location: Prescott AZ
6,635 posts, read 10,217,145 times
Reputation: 13092
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I had an Edward Jones account with my IRA in it and I decided I had had it with them. I called them up and said I want all the money and I put it in a Bank of America CD, so it would stop losing money. Its a short term 7 month, and at least its making something now. Its an IRA CD and BOA was very helpful in accomplishing this.
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11-23-2008, 12:30 AM
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Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
27,215 posts, read 45,390,928 times
Reputation: 31515
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if it is allowed in your 401k, you can put it into VFIIX (Vanguard Ginnie Mae currently paying 5.3%), or roll it to a "Self directed Rollover IRA", then you can invest in what you want and do options once you get some training....
You can also place the IRA in a company that allows you to buy Real estate within an IRA, but I have found them spendy on management, but not like loosing 50%... (unless you are a poor real estate shopper). BE CAREFUL There are lots of rules restricting 'alternative IRA investments' (businesses, real estate, ...) but... I think it is probably one of the best inflation hedges if you look at the long term
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