Should You Move Your Money?
Volatile times make money and investment decisions that bit trickier. Sometimes it’s easy to over-react and suddenly take all your money out of investments to put it in a “safe place” - but that can often leave you worse off than when you started. CNN Money has some tips on what to do with your money to keep it safe during the coming months and years:
- Don’t stop contributing to your retirement account. In fact, it makes good sense to contribute to your retirement account when the share market is down because then you’re paying less for your investment.
- If you have some capital losses, you may want to realize them now to cut your tax bill - consult your financial planner or tax accountant to see if you’ll come out better off.
- Switch from a traditional IRA to a Roth IRA this year - because when you switch you pay taxes on these assets, so if they are lower than normal, it’s a great time to change and pay less tax. There are various reasons that a Roth IRA could be better for you but there are also income limits so check it out with an expert before you make a decision.
This entry was posted on Sunday, December 7th, 2008 at 5:57 am and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
