AboutDavid M Iannopollo Expertise I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances.
Experience I have over 20 years experience in the business and financial world.
Question QUESTION: I was out sick for two weeks with no vac or sick leave, that I pull monies from my 401K and paid taxes. I also withdrew and extra $1000.00. I would like to know which is better for me to invest it in. I make $35,000.00 > $40,000.00 a year, 60 yrs old, single, no kids. I want one where I can make some money and if I get into another situation I can withdraw w/o penalties. I will be putting money in once or twice a week. Please advise, Thank you, Maria
ANSWER: Hi Maria,
Unfortunately at this point in time, there really is not much out there where you can get a reasonable rate of return and have access to your money without it costing you on some level. A money market or savings account will give you access to your funds but will pay almost nothing in interest. Conversely, an investment account may offer you the potential for more return but if you would be subject to an upfront or deferred sales charge which could eliminate all or part of your return. If you think you are going to need the money it probably doesn't make sense putting it into an investment type account. A money market account would probably be your best bet. I hope this helps. Good luck!
Dave
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QUESTION: I guess its better if I just put it back into my 401k or as you said an Investment account, which is????
Answer If you are sure you are not going to need to withdraw funds, then go ahead and put money into your 401k or IRA. If you are going to need the use of these funds, you would be better off in an account such as a money market. Putting money into retirement accounts for only a short period of time is not a good idea as you will lose tax benefits and possibly a good portion of your funds.
