Retirement funds question.

[HUAJIAO]

What do you think is the likely hood of retirement funds in an IRA - in a major brokerage house- being "safe", (whatever that means) - 12-month Treasury Bills and 1-3 year Bank CDs---given, well ya know--the fact that 'somebody' wants all the money, wants to demolish the FDIC, etc etc?

Asking for an 81 year old friend !!

[mahatmakanejeeves]

1. Recommended forum for this question: Personal Finance and Investing

https://www.democraticunderground.com/?com=forum&id=1121

[HUAJIAO]

4. Thanks.. I'll post there also.

[dawg]

2. The 12 month treasuries are "safe", although they might not outpace inflation.

As for the bank CD's, he just needs to stay under FDIC lmits (and be prepared to make adjustments if those limits change).

[HUAJIAO]

3. Do you think they are safe IN SPITE of trump, musk et al?

[dawg]

8. Yes.

If we default on treasuries, our entire economy will collapse, and money will be useless anyway. Not saying it couldn't happen, but there's no alternative investments to protect against that other than canned food, ammunition, and maybe tanks of propane (gasoline doesn't have a long enough shelf life).

[HUAJIAO]

11. "If we default on treasuries, our entire economy will collapse, and money will be useless anyway"

In my sister's and BIL's views that is not entirely out of the question, anyway!

[Igel]

13. Yes.

The doom and gloom from fall 2016 didn't quite happen. And by "not quite" I mean "not even close."

The government will not default on T-bills.

Don't believe all the hype.

[Yavin4]

5. If your safe investments lose value, then everything that you know will also lose value, and we will be in Mad Max world

There's only so much one can do to protect oneself in a total collapse of society.

[Silent Type]

6. If those tank, we will all be broke, houses will be worthless except to those living in them, stock market will tank

and most billionaires will get smoked because their wealth is based on investments.

[Fiendish Thingy]

7. You shouldn't have all your money in T bills and CD's, regardless of who is president

Our balanced and diversified portfolio has weathered the crashes of 1987, 2001, 2008, and COVID, dropping less than the market overall, and rebounding quicker to make healthy gains enabling us to retire at 62, and live comfortably to the present (we are 67 now).

T bills and CD’s will barely keep up with inflation, if that.

Unless this is a relatively small amount of money (less than, say, $50k), I would suggest talking to a financial advisor (preferably not somebody who works for the bank) whose legal capacity is as a fiduciary, and not merely a broker or commission based agent.

Someone who is 81 would likely want a fairly conservative portfolio, but that could still include some index funds that would offset fluctuations in the bond market.

If Trump succeeds in linking treasury bills to cryptocurrency, and abolishes the FDIC, nobody’s money will be safe, and we better start stockpiling recipes for squirrel and possum.

The sane Wall St. Billionaires don’t want to see their hedge funds evaporate, so let’s hope they can exert enough leverage on Trump to balance the nonsense his sons and Musk are whispering in his ear.

[HUAJIAO]

12. Thank you for your advice.

"If Trump succeeds in linking treasury bills to cryptocurrency, and abolishes the FDIC, nobody’s money will be safe, and we better start stockpiling recipes for squirrel and possum."

Yeah, That is probably not beyond the realm of possibility..

[XanaDUer2]

9. Isnt all this fear so sad?

I'm terrified my Medicare and ssdi will be taken away. Millions could lose Healthcare. This is living in the greatest country in the world is like

[bif]

10. I'm considering putting 1/3 of my money in MMFs

But I'll wait a bit. I'll be keeping a close watch on the stock market for the next several months.

[LogDog75]

14. I'm not sure he's talking about an IRA

If he has an IRA, is it a regular or Roth IRA.?
Under a regular IRA, you have to begin withdrawing at age 73. Since your friend is 81, he would have had to begin withdrawing at age 70.5. so this year he would have to complete the total withdrawal from his IRA.

If he has a Roth IRA, then he's not subject to the mandatory the withdrawal requirements as a regular IRA is.

If he's looking to move his money for protection of his assets, then at age 81 he'd probably do well putting it into treasury bills.