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Jerry BeersJerry Beers
Post count: 26

An IRA is usually self-directed, so when you sell a stock from the IRA, it increases the cash balance and you just don’t use that to buy another position. A 401k usually only offers a handful of mutual funds, but one of them is usually a cash-based fund. Like my 401k has one called “Federated Hermes Us Treasury Cash Reserves Inst”. This is a fund that is as close to cash as you could have. Your Roth might be invested in mutual funds or stocks, but you can sell those or change the allocation to cash funds (I’m not recommending anything, just saying what you could do).