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Ask Dave

Moving The Money

Steve thinks, with all the market volatility, he needs to move his money into certificates of deposit. Is he right?

QUESTION: Steve retired in January and has no debt at all. He started drawing Social Security and a couple of IRAs. He is seeing volatility in the fund. Is it safe to leave them in the funds or should he move it to CDs?

ANSWER: If you cash them out now, you are probably getting out when things are bad. If you are going to leave the money in there for an extended period of time, now is a horrible time to take it out. You only get hurt on a roller coaster if you jump out before it gets to its destination. I’ll tell you that 100% of the 10-year periods in the stock market history have made money. That includes the Great Depression, 9/11, Pearl Harbor, Black Monday and Nixon resigning. If I woke up in your shoes, I would leave it alone. If the stock market goes to nothing, you’ve got bigger problems. Even in the Great Depression the stock market didn’t go to nothing.