ira portfolio

bigalle,

You didn't indicate what your advisor invested in during the time your IRA lost the 40%. Assuming it was primarily stocks(or equity funds), your return is not that bad if it was for 2008. Losing 40% is bad, but not when the indexes are in the same range! International Funds lost almost 50%.

However, I would recommend you consider another advisor because of the 2.5% fee you indicate your advisor is charging. I don't know how much is in your account, but you should be able to find a much lower costs option from another advisor. If your IRA is below $100,000, you might consider a managed account with a major mutual fund company, like Vanguard, Fidelity, Schwab, etc. I would suggest you bring that fee down to 1% or less.

As to cd's, if you are under 50 years of age you should stick to equity mutual funds and not sell at this time. If you are already retired, you should consider a balanced approach (a portion in stocks and a portion in bonds and cash). Your advisor should help you do that, at 2.5%, they should also mow your lawn, wash your dishes, walk the dog, etc!

Disclosure - I am the principal of a state registered investment advisory firm. This answer is provided anonymously and should not be considered a solicitation.