Quora Answer: Reaching Age 70, is It Better to Transfer My IRA from Money Market to US Bonds or Elsewhere?

The following is my answer to a Quora question: “Reaching age 70¹/², I now have to start redistributing my IRA.  Is it better to transfer from a money market IRA to a US bonds market fund, or something else?”

Considering your age, you are well into retirement.  As such, it does not make sense to take risks with your IRA for wealth accumulation.  Rather, now is the time to enjoy the fruits of your investment in a controlled responsible manner.  In light of this, it would make sense to put some of them into bonds, which are safe; although they have a low yield, that yield is guaranteed.  However, leaving it in the money market, while leaving the funds accessible, has no yield and leaves it open to currency risk.  That is very risky at this stage.  You may consider a portion for the equity market, but I see more to lose than gain since we normally look at an investment horizon of 15 to 20 years if the funds just sit there, and that is not helpful for you.