How to reinvest an IRA

greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread

Having only been "plugged in" to the Y2K situation for about a month, my husband and I are in a major learning mode. As we try to prioritize what we need to do in the next 18 months to prepare for the "unknown consequences" ahead, our first concern is in protecting the funds we've worked so hard to build. A good portion of our IRA funds are invested in stocks, and a Y2K savvy friends has advised us to move over to Treasury Bills. However, it's my understanding that T-bills are debt instruments of the federal government...which is hopelessly in debt and will possibly default on all obligations if Y2K hits as hard as some seem to think it will. Any suggestions from anyone out there with investing expertise would be greatly appreciated.

-- patricia (dewinter@Alaska.Net), July 04, 1998

Answers

Patricia, some food for thought:

I may be wrong but I believe any president has at their disposal the ability to activate the executive order forcing t-bills to be magically transformed into t-bonds(30 year maturity) to avoid coughing up any immediate cash outflows.

Would'nt that be special!! I'm staying away from electronically credited or debited transactions starting a few months(6?) prior to the rollover myself. A few eagles and mapleleafs are pretty cheap insurance presently for some financial diversity. Also, extras of any other necessary commodity you might consume in the normal course of present daily activity might be warranted with or without any forseeable disruption. Try to think "needs" rather than "wants".

Have a nice rollover!

-- Mike T. (anita_martini@hotmail.com), July 05, 1998.


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-- J.C. Stefan Spicer (sspicer@nas.net), November 01, 1999.

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