I'm just not a risk taker

[CathyA]

I have several IRAs with mutual funds. But it just gives me too much angst. So I'm moving alot of it to my Credit Union. I know it won't make me much money there, but I worry too much about losing it all in the stock market. So there.

[herbgeek]

I understand your concern. We moved to safer investments over the last few years as well. Just keep in mind, that in a high inflation time, you'll actually be losing money by keeping it in the credit union. If you are getting 2% in the credit union, but inflation is at 5%, you're losing money. Not as much as if you stuffed it under the mattress however.

[Spartana]

I'm also not a risk taker - at least not when it comes to money - and also don't invest - I'm a saver not an investor. I have never put anything I have - IRA's, 457 (like a 401K), etc into stocks or mutual funds. just put them into CD-type "safe" things where I earn a smaller, but guanteed, return. Even now most of my IRAs are earning over 7% interest because I locked them into 5 year CDs back when the rates were higher (and I will whine about the 2 or 3 % I'll get when that expires) but I KNOW that I can get that money back because it is FDIC insured up to $250K (right now). And since those things are tax deferred I never even think about them. They will be there when I need them and I can sleep soundly at night.

[Spartana]

I understand your concern. We moved to safer investments over the last few years as well. Just keep in mind, that in a high inflation time, you'll actually be losing money by keeping it in the credit union. If you are getting 2% in the credit union, but inflation is at 5%, you're losing money. Not as much as if you stuffed it under the mattress however.

Inflation is all relative though. It can effect people differently. I've been retired for going on 12 years now and have found that my "personal" inflationary level has dropped even as prices for food and fuel and energy have increased. Of course I have free medical coverage thru the VA, don't HAVE to drive anywhere if I don't want, and choose to live in an area with moderate temps year round so don't have excessive utilities, have low almost fixed property taxes, and don't have a family to feed, cloth or pay for so I can keep things low and not be effected by inflation very much if at all.

[CathyA]

Thanks Spartana and herbgeek,

The CD rates at my credit union are awful. Moving some of my stock money there will give me a tiny higher percentage on them, since the amount I have there will raise, but not much.
Still though, I just don't trust the economy these days to leave it even in socially responsible mutual funds.
DH has alot more faith than I do, and he'll probably make alot more money than I will, but if something horrible happens to the stock market, he'll thank me for moving my stuff.
My older IRA CDs at the credit union had to be rolled over, and its really painful to give up those 4+ percent rates for really low ones.

[sweetana3]

An alternative is to balance investments with savings. I feel a lot better since approx. 50% of our porfolio is in CDs (all at credit unions) and the rest is in a balanced group of mutual funds, etc.

[CathyA]

I just don't want to lose any of it. I still have a little in some other mutual funds, but if it crashes........its all gone. Things seem to be so unstable these days, to put a whole lot of trust in the stock market.
I lost almost $10,000 when I first started investing about 20years ago. My broker told me since a big bank was having problems, it was the time to buy more. Stupid me said ok, and I lost it all.
The whole world economy seems a little rocky to me now. So I'm hiding my mula under my mattress (so to speak).

[Spartana]

I just don't want to lose any of it. I still have a little in some other mutual funds, but if it crashes........its all gone. Things seem to be so unstable these days, to put a whole lot of trust in the stock market.
I lost almost $10,000 when I first started investing about 20years ago. My broker told me since a big bank was having problems, it was the time to buy more. Stupid me said ok, and I lost it all.
The whole world economy seems a little rocky to me now. So I'm hiding my mula under my mattress (so to speak).

I think age has something to do with the amount of risk someone is willing to take. I know you said you were 10 years older than your hubby (my kind of woman!!) so you are probably more adverse to risk than he is. I was always adverse to risk money-wise but have faired well. Not as good as people who invested in the market but comfortably OK.

[CathyA]

No, that must be someone else. DH and I are the same age........61. I guess you could say I'm too cautious and DH and not cautious enough. Hopefully we'll end up with something.

[Life_is_Simple]

Cathy,

I know what you mean, not being a risk taker myself. First question, you can have CD-based IRAs? That's good to know. I'm looking at my credit union site, and it looks like they offer them. I might do that, when rates go up a bit.

I have a chunk of my actual IRA in a supposedly safe fund. It's money-market-like, but not really because it can lose money supposedly. I would really like to have some amount in more of a CD thing that NEVER loses. Hmmmm... Then I'd feel better about the other percentage of funds that are more risky.