HELP... Again!! I Just Heard This AM That Morgan Stanley Will Not

[ChiciB1]

be operating as an investment firm anymore, or so it looks like. I have my IRA with them, but less than $100,00. What I want to know is, should I take my money out and put the money in my local Credit Union.

My husband is on Social Security and I am on Disability and we have taken money out of our IRA each year since his retirement because we can't manage to live on our monthly income. I will call my local Credit Union to see what interest I will be paid through them, but does anyone think my interest rate with Morgan will be more??

And since I don't know what is going to happen to Morgan, I realize this question may be premature, but I don't want to lose what money I have with Morgan AND since it's tax deferred I found out that it has to be added back to my Social Security earnings. Even though we pay the taxes on the money we withdraw, we had to take a great deal out last year because of a crisis, we ended up paying a LOT in income taxes.

Any advice???

[Davis_X_Machina]

1. They are converting to a bank holding company...

...and will as a result be subject to more regulation, stiffer reserve requirements, etc, etc, than when they were an IB. The entity (MS) that holds your money used to be an investment bank, and is now a commercial bank, basically.

I doubt you'll notice any difference.

The CU is a better way to go, but that's for reasons unconnected with the present troubles.

[ChiciB1]

3. FDIC or Better Interest Rates? My Credit Union Is Through CWA Union... n/t

[Zynx]

2. They're going from a free-standing investment bank to something more along the lines of Citigroup.

You will not be affected.