My IRA's are killing me-can't control market! What programs are available for steady %rate to change to?

Question

I have always hated having my 401k, now IRA's, tied into the roller-coaster ride of the stock market. I'd like to just simply get a comfortable interest rate and let it just sit there for the 20 yrs I have left before I need to withdrawl. It's small amount - only 25k (well, before yesterday, it was!) and I'm just struggling too hard to settle for all of these market adjustments.
What programs are out there? What are they called? Who carries them? What fees are involved? Thank you for your help!
022807 12:48

OH OH OH ! You all sound like you have the answer! I can't choose between such good responses. I'm leaving it up to the Y!A community to vote. Thanks again!

Answer 1

It may be a roller coaster ride, but my 401K still grew 17% this past year even with the market correction in May/June 2006. That is way better than a savings or CD. The thing with 401K and IRA is that you still have to be active in maintaining them as well as being educated about them. Trust me, at the end of the year, your IRA will be higher then where they are right now.

If you want to put your money in something and don't have to worry about it than just stick it in a good bond fund. Just remember that a bond fund is subject to the market just like your mutual funds and stocks. Your bonds are subject to how consumers and banks are spending money and what the interest rate is. However, you can make from 4% to 10% a year depending on the bond fund.

To find a good bond fund go to Yahoo Finance and under the Investment tab you will scroll down to find Mutual Funds. On the left is a line called "Top Performers". You will see a header called Bond Funds. Click on the High Yield line and you will see a list of High Yield funds. I personally would choose a Fidelity fund. They are an excellent brokerage house.

Answer 2

You can move your IRA into a Certificate of Deposit, which will give you a fixed rate of return, and FDIC insured. No fees, except maybe an annual custodial fee, which would probably be less than $20.

You can also get something called a "Guaranteed Interest Contract" from insurance companies.

I think you are making a mistake moving away from the market. You'll end up with a lot more money in the end sticking it out in the stock market.

Answer 3

Look into equity indexed annuities. They have really become a great investment tool.

Principal guaranteed
Guaranteed interest rate
All index gains are yours, regardless of future downturns in the market.
Now offering up to 12% BONUS on initial deposit. That increases your $100,000 to $112,000 that starts compounding.



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