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When it comes to saving for retirement just one money move can make our break your golden years joining me now with Smart investments for your IRA.
Rick Adelman CEO of Edelman financial services Rick welcome back to the show good to CO.
Still huge -- that's that there was one thing you absolutely should not fight for your -- okay what is it.
Tax free municipal bonds really.
A lot of people love you these because their tax -- -- and there are perceived to be very safe but here's the weird part hiring rules trump.
Everything else so even though the -- is generating tax free income if you put it inside of -- -- -- a the withdrawal will suddenly become taxable you'll ruin the tax free aspect of a mutiny by putting it inside and -- -- Smart.
I love that OK what do I -- and if you don't like that makes some suggestions besides.
Stocks and bonds anything else.
Hurt pretty much everything else the whole -- -- for a proper retirement safety security and retirement income is diversification I know it's a boring old word but it works.
Investments are supposed to be exciting boring works -- when it comes wealth creation.
Owning a little bit of everything and too many people emphasized safety far too much Jerry they have their money invested far too conservatively.
Far too low and interest -- And they're gonna go broke because of inflation over time so stocks make a lot of sense but don't buy individual stocks use exchange traded funds low cost mutual funds.
That's the best way to go.
I agree with TO.
I want your help me solve a problem we had a tweet from a viewer and I wanna read that.
And get your reaction to it it's from one Karl wants that.
Correctly he said.
Hope you can cover reporting by Glenn Beck that SEC is planning rules to limit movement withdrawals.
In money market accounts and we went on the blaze website and found this story.
Small investors scare tactics the headline -- sound like Cyprus the SEC proposed this strict new rule on money market account withdrawals.
We say here Rick I mean.
This is like a little scare mom.
Bring to man.
That's entirely -- is Gerri this rule by the SEC has an outgrowth of 2008.
When one of the biggest and in fact oldest money market funds in the country broke the buck meaning the one dollar per share price fell to 9797.
The FCC wants to make sure that never happens again so they're instituting new rules right now there merely proposed.
That would limit the ability of institutional money market funds not the ones you want values.
To be haven a different way so that we don't have the shock that occurred in 2008.
The fierce Jack stack -- tactics that some people are using is just designed as you pointed out to be fear mongering it is not legitimate -- -- There Rick is very good -- -- -- that's straight here.
It sounds like the rules are not meant to restrict individual investors regular investors like me and you know.
With their money market funds do I have that right.
Half right yeah.
-- one set of rules would.
Require the institutional money market funds to stop using a one dollar fixed share price.
The other one for ordinary individuals from what money markets that we use.
Would basically say that if we run into a market crash like we have in no way and there's a sudden run on the money and everybody wants their liquidity all -- wants.
The SEC will allow these funds to restrict the liquidity does not -- prevent you from I think I -- That's a good and I humbly thank you from mommy and -- well I think that's exactly what the -- talking about that you would have limited abilities to get your cash.
That's what they're worried about who -- -- -- have the -- England.
Did you -- know.
If you have unlimited ability to get your cast your guaranteeing losses and the SEC is saying we don't want -- market power.
-- to cause you to lose money unnecessarily.
So the restrictions are not designed to prevent you from getting your money it's to prevent you from doing something stupid unnecessarily.
-- because of panic in the marketplace.
I -- I think our viewers are Smart enough to do the right thing I have a lot of confidence -- them but.
I think the moral of the story here is that you may see some restrictions inability to get your money at a time when people are panic -- the flip side and that is.
It's never good to that sell an investment when people are panic and because you never know where the florist.
It also means you're right and it also means you have to fully understand how these investments work many people believe money market funds are like bank accounts.
They're not now that.
Now -- can fluctuate and there could be fees.
Well and I think that's a great point because the FCC is trying to make these look more like investments.
And less like bank accounts -- people have assumed that that money will always be safe.
And so that that sort of highlights how they may not they Rick thanks for coming on the show tonight appreciate your time.
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