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Old 04-17-2015, 09:44 AM
 
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if living off it in retirement you need even more than that. you don't want to liquidate things at a loss if we are down a year or two. two years is the most common but some buckets systems call for 7 years cash and 7 years bonds . the idea being we never had more than a 15 year period where you couldn't liquidate stocks to raise cash a profit.
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Old 04-17-2015, 10:05 AM
 
Location: Great State of Texas
86,093 posts, read 72,534,315 times
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Quote:
Originally Posted by mathjak107 View Post
if living off it in retirement you need even more than that. you don't want to liquidate things at a loss if we are down a year or two. two years is the most common but some buckets systems call for 7 years cash and 7 years bonds . the idea being we never had more than a 15 year period where you couldn't liquidate stocks to raise cash a profit.
Those of us with a pension though have it replenished monthly. When it goes over my target number I move some of that cash to my Fidelity account and invest it. Besides a pension check I also do tutoring in the local schools.
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Old 04-17-2015, 10:24 AM
 
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that is an ideal situation.

we need quite a bit of cash as if markets hold i will delay social security otherwise i will file early. so for us we are comfortable with 5% cash.

when retired the story isn't about maximizing every dollar for many folks. it is about having a use or plan for some of that money
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Old 04-17-2015, 11:04 AM
 
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Same boat here; had my money in investment property, but sold these in order to ready myself for retirement. However, having $300k sitting in the bank earning less than 1% interest just seems insane! Also not a risk-taker and want it liquid (like you, I plan to relocate and buy property elsewhere in a few years), but there's got to be something better than this.

I considered buying beachfront property as an investment and for future vacation use, but other have pretty much convinced me that this would be a not-so-profitable headache.

My parents earned 12% on CDs back in the day; that would solve the problem, but those days are gone.
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Old 04-17-2015, 11:42 AM
 
6,287 posts, read 4,740,348 times
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Originally Posted by otterhere View Post
..

My parents earned 12% on CDs back in the day; that would solve the problem, but those days are gone.
I also remember those days. The rate of inflation was also 12% during many of those years.
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Old 04-17-2015, 11:43 AM
 
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there are lots of things to invest in but nothing that will keep your money liquid and whole in the short term.
the money and time frame for its use need to be matched
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Old 04-17-2015, 11:55 AM
 
Location: Great State of Texas
86,093 posts, read 72,534,315 times
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Quote:
Originally Posted by otterhere View Post
Same boat here; had my money in investment property, but sold these in order to ready myself for retirement. However, having $300k sitting in the bank earning less than 1% interest just seems insane! Also not a risk-taker and want it liquid (like you, I plan to relocate and buy property elsewhere in a few years), but there's got to be something better than this.

I considered buying beachfront property as an investment and for future vacation use, but other have pretty much convinced me that this would be a not-so-profitable headache.

My parents earned 12% on CDs back in the day; that would solve the problem, but those days are gone.
Rates for conservative investments are dismal and have been for years now.
Almost like they did it on purpose to push everyone into equities.

And to keep some liquid you have to bite the bullet and take the low rates.
I have my liquid bank money in a MM account and just move to checking what I need.

I keep waiting for the Fed to raise rates but every time some bad news comes out (oil price drops, new home permits drop, etc.) the Fed gets all murky about exactly when they plan to raise rates.
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Old 04-17-2015, 11:57 AM
 
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I think "Big Bother" is trying to discourage saving money, personal responsibility, and financial independence... But maybe that's just me!
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Old 04-17-2015, 11:58 AM
 
71,697 posts, read 71,801,099 times
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Originally Posted by jrkliny View Post
I also remember those days. The rate of inflation was also 12% during many of those years.


yep if inflation didn't eventually crumble those rates were a loss in real return. everything is relative to inflation.

Last edited by mathjak107; 04-17-2015 at 12:17 PM..
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Old 04-17-2015, 11:59 AM
 
71,697 posts, read 71,801,099 times
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Quote:
Originally Posted by HappyTexan View Post
Rates for conservative investments are dismal and have been for years now.
Almost like they did it on purpose to push everyone into equities.

And to keep some liquid you have to bite the bullet and take the low rates.
I have my liquid bank money in a MM account and just move to checking what I need.

I keep waiting for the Fed to raise rates but every time some bad news comes out (oil price drops, new home permits drop, etc.) the Fed gets all murky about exactly when they plan to raise rates.
low rates have been happening all around the world , not a plot by the fed,. recessions and failing economies are the cause. as the great depression and japan taught everyone low to know rates are the lubricant for the economy and not doing it can have horrible consequences.

we may not be back yet but we are a whole lot less bad then we were in 2008-2009

recession and job losses are not plastered in everyone's mind anymore.

Last edited by mathjak107; 04-17-2015 at 12:16 PM..
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