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I have $100k "parked" in Vanguard Prime Money Market Fund for the short term until things clear in DC (election, interest rates, correction).....I know I'm not supposed to time the market, but I'd hate to see my portfolio dwindle again like it did in 2008 - but long term investors aren't supposed to care, right?
Nothing wrong w/ a 1 YR CD (did that last year). Gives you a few dollars in spending - just a holding spot. I used Synchrony last year for that.
No I do not have 100K laying around. I am putting my former house payment into a savings account type vehicle to accumulate 100K or more in 10 years.
Great move, I keep seeing how our thinking and planning is similar. I have advocated a minimum (if possible) of 100k in after tax accounts which you are striving for and have a plan to get there. Kudo's. When I suggested that goal in thread a few months ago I got some interesting responses. You are striving for a balanced financial resource package in retirement and that is awesome.
Closed End bond funds.
Especially municipals, and in states that are in decent financial shape.
NNC (North Carolina)
NAZ (Arizona)
NPV (Virginia)
I've rotated a good portion of my retirement fund into these funds.
In the past I had higher return funds, PCN, PTY and PHK -- traded out of them a while back after taking some profits. Now is a time for safety, or at least as much of it as you can get. If Trump wins --- fasten your seat belt.
Great move, I keep seeing how our thinking and planning is similar. I have advocated a minimum (if possible) of 100k in after tax accounts which you are striving for and have a plan to get there. Kudo's. When I suggested that goal in thread a few months ago I got some interesting responses. You are striving for a balanced financial resource package in retirement and that is awesome.
Thanks Tuborg,
I am very conservative by nature and have structured investments that way. To me Vanguard, Fidelity and
T Rowe are good as it get for investment firms. Of course with my 401K, I have to go with what the company has selected (Black Rock)
My way of thinking in retirement is to have no debt and a good stash of available cash just in case along with 401K's, Social Security, IRA's and pension if available
Closed End bond funds.
Especially municipals, and in states that are in decent financial shape.
NNC (North Carolina)
NAZ (Arizona)
NPV (Virginia)
I've rotated a good portion of my retirement fund into these funds.
In the past I had higher return funds, PCN, PTY and PHK -- traded out of them a while back after taking some profits. Now is a time for safety, or at least as much of it as you can get. If Trump wins --- fasten your seat belt.
the thing that may prove all our thinking wrong is that many who fear trump already got out or reduced down to what they wanted to .
generally when we all see and think the same thing it rarely happens that way
Better interest than savings. But then all the money is not available at once. I haven't looked at this in a while, but I once did look into 6 month cds, planning on buy one each month for 6 months and keep them revolving.
Yes, it's the best you are going to do--maybe a whole 1.5%!--unless go the "Vegas" route and put it in the inflated stock market, and have incredible luck or insider information that lets you get out before the next collapse confiscates it to cover the bigwig's losses (which was the only change since the 2008 collapse).
You can always get the CD money out if you really need it; you just lose the interest and maybe pay a penalty. Unfortunately, near-zero interest rates are already the equivalent of negative interest rates, and we're all still eroding our hard-earned savings since the cost of living continues to rise far above the meaningless government "inflation rate" (my property taxes alone this year went up 28% thanks to frequent and corrupt re-assessment). You'd need over 3% interest just to break even.
It shows how complicit our media is with the criminals in Washington, as the Baby Boom--supposedly a politically important group--has been robbed of any way to accumulate retirement savings after over a decade of near-Zero interest rates that will continue far into the future, thanks to Big Government's infinite over-borrowing. With 24-hour a day media coverage of the election for the last 8 months, there's been NOT A WORD about near-zero interest rates making retirement impossible as the "pig in the python" moves into retirement.
Too bad we can't scrimp and live like paupers to make ends meet, when the health problems of aging accumulate and you are personally responsible for whatever health insurance doesn't cover. Too bad Obamacare didn't address the highest health care costs in the world, or the perfectly-legal "balance billing" that means even if you go to a facility covered by your insurance, any health care worker can charge WHATEVER THEY WANT above the accepted and reasonable rates for your area, without any notice to you, and you are personally liable for whatever insurance doesn't pay.
I am very conservative by nature and have structured investments that way. To me Vanguard, Fidelity and
T Rowe are good as it get for investment firms. Of course with my 401K, I have to go with what the company has selected (Black Rock)
My way of thinking in retirement is to have no debt and a good stash of available cash just in case along with 401K's, Social Security, IRA's and pension if available
Your last line is the most important one and that is the fixed annual income of SS and pensions. I know they aren't large pensions but what in your situation is important is the percentage of desired income they provide together. If you look at that as a cash part of your portfolio and add to that what ever amount from your 401K's IRA you need to generate the income on top of your pensions and SS that will give you the amount you have to play with. Keep the after tax at a minimum of 100k that will give you a nest egg for emergencies or whatever you can access without triggering an unwanted tax consequence. A note for other readers Jasper and I have discussed somethings in PM.
Jasper if not already working this into your plan you may want to. Your 401K etc will be taxed as normal income while your after tax fund will be taxed as the type of investment they are. This is a balancing of diversification over you portfolios you might want to consider.
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