No. of Recommendations: 1
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.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.