I have money in an annuity (403b) account, which has lost money. ?

Question

I guess it it due to the economy and I know I'm not alone. However, I had heard some people are taking their money and putting in a safer spot for the time being. Am I able to put the money in a bank CD or.IRA? I was told I'd be penalized to take the money out to put it in an IRA, but I'd rather do that now than to lose more. I am a teacher and this 403b account is like a 401k plan, but for teachers.

Answer 1

If you took it out and put it into a CD or.IRA you would have to pay taxes and a 10 percent penalty. You could put it into a money market account within the the 403b probably, but thats not a good idea either.  As long as its balanced according to your risk profile just keep it where it is and keep doing what you're doing.  The rule of thumb is to have the same percentage as your age in fixed income and the rest in equities.  A 403b is a long term investment.  The economy will have ups and downs.  Dont invest for the long term with a short term perspective.

Answer 2

I would say try the Investor website

http://invetsor.com/article.cfm/id/35552...

Answer 3

If it's a balanced fund,leave it alone

-It's tied to the stock markets and will bounce back,making you more money than moving it around every time things get a little tough

Answer 4

Stick to a plan..... I've been through this several times since 1978.

What you really need to do is understand the basics of Mutual Fund investing..... That will give you a better perspective & ultimatly help you make some good money.

These plans do work! If you stick with them and have a good asset allocation.   You will destroy your retiremnent by putting them in CD's... which lose value to inflation (thus destroying purchasing power).......

Start by reading;

Mutual Funds For dummies

401K's For Dummies

It will be well worth the time!

BTW: You should also open a ROTH IRA.

BTW (again): Never use a bank or insurance company for retirement money..... NEVER!