IRA Rollover

Archive for March, 2007

Question: how should i split up my money b/w my ira & regular acct?

i’m 34yrs old. i have both an ira & a regular acct. my ira is about 3x larger than my regular acct b/c it was a 401k Rollover. my ira consists of mostly growth/speculative stocks. my regular acct is cash as i just opened it w/ leftover money from my 1st home purchase. i’m looking to diversify, & rather than diversify each acct, i’m thinking about making my ira a growth/trading acct & my regular a value/buy & hold acct. the basic reason is i i don’t wanna deal w/ 1099′s & reporting all my transactions every yr. at the end i think it does what i want to do which is diversify, but wonder if reversing is a better way? ie: make my ira value/buy & hold, & my regular growth/trading. i know i’m not taking into consideration the tax implications as i’ll be in a lower tax bracket at retirement than in now. does that affect where i put my dividend stocks (treated as regular income) vs growth stocks (capital appreciation)? thx for your feedback/suggestion/comment.

Answer: Not sure if I am going to answer this for you but this is what I would do. First, make sure that your “regular account” has at least six months worth of living expenses in it at all times. I have my “regular account” at Fidelity and invested in their cash reserves money market fund. It earns about 5% currently. I don’t have an investment account outside of my IRA. I do all of my investing within the IRA so I don’t have to worry about 1099′s, capital gains, etc…Unless you are an active trader, I would pick a solid lifestyle fund that is tailored to your own age/situation and let the fund manager do his job (make you money). TRowe capital appreciation is also a good fund. Hope this helps.

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