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|Subject: Re: Rollover 401(k) to Roth IRA?||Date: 1/14/2005 12:40 PM|
|Author: Fuskie||Number: 44034 of 80170|
So you say, Fuskie. If you imagine moving money out once a month is excessive, why would you keep funds in any money market fund? Why not choose an investment that pays better?
Because I can not afford to lose it. Speaking from an experience, an eFund is a lifeline when you lose your source of income, as happened to me in July 2003 when the FEWMNBN&trade informed me they had no more work for me. I knew that was not true, but there it was.
I had an eFund, but I thought I could do better than a savings account (this was before I became INGed) and had about $20k in a combination of non-retirement stocks and mutual funds. The mutual funds were spread among bonds and equities, small cap and large cap, etc.
I sweated every market fluctuation, afraid to liquidate shares of funds that were depressed, unable to give up on a potential recovery that exceeded the 2% ING was bringing at that time. So I only moved out a little bit at a time, trying to give as much time to my investments to fulfil the hopes I had placed in them.
Fortunately I was able to stretch $14k over 10 months until Fuskie's Re-Employed Life&trade, but in looking at my tax returns, I took some big capital gains losses because I was forced to sell shares before they had had the opportuntity to mature. I as lucky as I had invested well enough to not lose my shirt between 2001-2003 when watching the stock market gave so many stress.
If I had to do it over again, I would have stored my eFund from the beginning in the ING account to provide a stable and secure insurance against sudden income loss. Now my quest is to rebuild my ING eFund, which has not progressed as much as I would have liked in the 8 months of FRL&trade, since my income is substantially less than at the FEWMNBN&trade, but that is another story.
Who could summarize the above by just saying that different investment goals warrant different investment strategies...
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