IRA Rollover

Archive for April, 2008

Question: Should I take my money out of the stock market?

I am 28 years old. I have 24k in a general account (Vanguard Total Stock Market Index) and was wandering if I should bail on the account right now? I already have a roth ira and a rollover 401k with vanguard and I am not touching that. It is about 20k right now. I am afraid of the financial market right now here in America and globally. European nations are in debt along with the US. I think a domino effect is coming soon, Do you think I should take my 24k out now?

Answer: I don’t think the stock market is going anywhere for the next several months, maybe longer. It has gone up too far, too fast and is due for a correction. You’ve noticed the increase in volatility. That scares me. Especially being in an index fund you are totally dependent on the market, you can’t get lucky by being in the right sector at the right time.

How to rollover your 401(k) – Vanguard