Q: I just retired and have a 401(k) with my former employer. I will not need the funds for at least 10 years, and I am not concerned about risk. I have been thinking of moving my 401(k) to our IRA in a fixed annuity. Is that a good idea?
E.W., 66, Chuluota
A: It is a good idea to roll over your 401(k) into a self-directed IRA. However, with interest rates at all- time lows, I would not recommend locking in a long-term investment in something that will continue to pay a low rate after rates go up. I would consider investing in something more balanced that has a chance of doing well in a higher inflation environment.
Q: I am thinking about selling some investment land that currently has a loss. Can I offset the long-term loss from the land against some long-term gains from stocks that I sold this year?
C.C., 62, Orlando
A: As long as you owned the land for investment purposes, you can offset the capital gains (in this case, from the sale of stocks) with the capital loss (from the sale of the investment land). For instance, if you sold the stocks for a $10,000 profit and took a loss of $5,000 on the land, the amount subject to capital gains tax would be reduced to $5,000.
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