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Subject:  Re: Need Help With the Parent's IRA! Date:  9/2/2003  11:22 AM
Author:  billjam Number:  37076 of 88772

If your father has $650,000 in his IRA even after the last 3 years, I'd say the broker has done a pretty good job. Without doing the math I'd say that's a heck of a return on IRA contributions spread over 22 years.

If you want to shift to a less risky portfolio, meet with the broker and explain that. He'll probably be happy to work with you. I would make the change gradually over the next two years. First, we are in a rising stock market so moving slowly out of stocks shouldn't hurt you. Second, bonds are probably going to suffer over the next couple years as rates rise. You could move into short term fixed investments and then shift to longer term bonds when you feel most of the rate increase has occurred.

Check with a tax expert on the Roth conversion. Your father would have to pay tax on anything transferred to the Roth and with his current income it would be very expensive. Depending on his pension plan he may be in a lower tax bracket in retirement.

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