November 4, 2008
I have my IRA with Fidelity. The IRA contains Bonds, FDIC insured CDs, cash and Mutual Funds.
I am by definition a long term investor who is attempting to live off the interest.
Each month when my statement arrives I have trouble determining exactly how much money I have due to this Mark to Market requirement. Even an FDIC CD can be marked below PAR value if interest rates go up, it seems.
I have AAA rated General Electric Bonds which are marked down as much as 25% below PAR Value. When I opened my statement it says that I lost $17,000 this month alone although I havent, in reality, lost anything, its all mark to market manipulations designed, it seems, for some other financial entity.
When I buy bonds I am aware that if the company issuing the bond goes under I will loose some or all of the value...that is however, the risk I take.
While you are at it please look at the rating agencies, they seem to react after the fact and are therefore useless to the investor.
Please eliminate mark to market in IRAs for bonds and CDs.