http://www.mytwodollars.com/2009/01/20/move-retirement-account-or-stay-where-i-am/ A place to discuss money...for the rest of us. Mon, 23 Nov 2009 05:09:30 -0500 hourly 1 http://www.mytwodollars.com/2009/01/20/move-retirement-account-or-stay-where-i-am/comment-page-1/#comment-31153 David Wed, 21 Jan 2009 02:28:59 +0000 http://www.mytwodollars.com/?p=1866#comment-31153 Thanks for the advice Michael! Thanks for the advice Michael!

]]> http://www.mytwodollars.com/2009/01/20/move-retirement-account-or-stay-where-i-am/comment-page-1/#comment-31151 Michael Harr Tue, 20 Jan 2009 19:38:18 +0000 http://www.mytwodollars.com/?p=1866#comment-31151 I would add that if you are retired, you should also be very careful to keep a significant portion of assets in cash--usually two years' worth of expenses or more. By doing so, you can avoid worrying about these kinds of market swings, as your withdrawals will come from cash and not the market. The biggest problem I've seen with investors is that most were over-positioned toward equities and few realize that a 50/50 portfolio has experienced higher returns with less risk than an all stock portfolio in the last decade plus. In addition, Fidelity's own research demonstrates this fact. Also, the odds are pretty good that you can find a fee based manager by the hour that will save you money compared to a percent fee based account. I would add that if you are retired, you should also be very careful to keep a significant portion of assets in cash–usually two years’ worth of expenses or more. By doing so, you can avoid worrying about these kinds of market swings, as your withdrawals will come from cash and not the market. The biggest problem I’ve seen with investors is that most were over-positioned toward equities and few realize that a 50/50 portfolio has experienced higher returns with less risk than an all stock portfolio in the last decade plus. In addition, Fidelity’s own research demonstrates this fact. Also, the odds are pretty good that you can find a fee based manager by the hour that will save you money compared to a percent fee based account.

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