Financial Planning
Your "Financial Planning" Guides
Questions and Answers
I am a 61 year old woman and I only have about $10,000 in an IRA mutual fund with VanGuard. Is there any way that I could make it grow? Could I change it to a Roth or invest some of it? Or is that not practical?
I am not working now, but I plan to in a year, because I am taking a course in medical transcription at home.
— Rosemary Sheehan
Your account with Vanguard will grow-- how much
depends on which fund you have the money invested in. There are 50 or more
funds including stock, bonds or money market accounts-- all called mutual
funds.
If this is your total retirement savings and you
plan to use it next year, it will not grow very much. If you will not use
the money for 5 or more years I would recommend a fund such as the Vanguard
S&P 500 which is an index fund of the 500 largest companies. You
will get market returns. I must also state that there is some investment
risk whenever you choose to invest in the stock market as it can go down as well
as up. Since the 1920's it has averaged about 10% increase per year.
I cannot be more helpful without knowing more
about you and where the money is currently invested.
Solomon Levy CFP