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Rocky Mountain Financial Solutions

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Mutual Funds

Mutual Fund Liquidity

jim Investing, Investing Strategy, Mutual Funds, qualified account February 24, 2018October 20, 2022Investing, Investing Strategy, Mutual Funds, non-qualified account

Received a great question last night from the website form, worthy of a quick post.

Question:  Would a mutual fund give access to cash and what would the penalties be to pull money out?

mutual fund pic erie co

Answer:  First of all, thanks for sending this question our way.  Let’s breakdown this question.  Mutual funds are a type of investment.  Mutual funds are an option of where you can put your cash.  Similar to a bank account, individual stock, exchange traded fund (ETF), index fund, and so on.  Where the mutual funds are held determine a penalty when withdrawing money in the event you need cash.

You have two options; you can open a non-qualified investment account or a qualified investment account.  The difference being a qualified account is a retirement account.  If you pull money out of a retirement account, without a qualifying event, you will receive a penalty tax.  Therefore, if you are looking for an account to invest in mutual funds (or stocks, ETF’s, index funds, etc.) and want to have access to the money without penalty taxes, you can find these advantages in a non-qualified investment account.  Accounts you withdraw money without penalty tax are referred to as “liquid” accounts.  We find these accounts to be beneficial to our clients who are looking for additional growth of their money (compared to a savings or checking account) and also have the quick access to cash if needed.  

Click here if you would like to learn more about your options and if we can assist you with your investment planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

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  • Financial Advisor
  • Financial Goal
  • Retirement
  • Wealth Management
    • Investments
  • Independent Fiduciary
    • About: Rocky Mountain Financial Solutions
    • Blog
    • Schedule a Call
  • FAQ
  • Retirement Review & Portfolio Audit

Blog

  • Love & Money – Long-term & Patient
  • From Halloween to Fall Back – Market Brief Nov 1, 2022
  • Market Brief – October 18, 2022
  • Game-Changing 4th Quarter
  • Inflation Still Running Hot – Market Brief Sept 19, 2022

Disclaimer

All stock data displayed is for informational and educational purposes only and should not be considered as investment advice or investment recommendation.

Author of this website does not accept liability or responsibility for your investment decisions, including but not limited to trading and investment results.  We are Investment Adviser Representatives of Rocky Mountain Financial Solutions. Rocky Mountain Financial Solutions is a Colorado state Registered Investment Adviser. Our current Form ADV Part 2 disclosure is available for your review upon request.

This website is for informational purposes only and is not intended to be specific advice or recommendations. This is not a solicitation or offer of service in states we are not licensed in. For specific advice or recommendations you would need to meet directly with one of our advisers.

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