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Old 10-19-2009, 03:02 PM
 
29,772 posts, read 34,856,103 times
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I realize this thread is not for everyone and those it is for are very fortunate and blessed. However it is worthy of discussion for some. Once retired and you have a positive cash flow independent of your investments what strategies and suggestions do you have for investing the extra dollars? Those with pensions and social security may well find themselves not needing to draw down their investments and in fact are still contributing to their investments. What are your thoughts on risk tolerance and fund balance? Tax free municipals, growth funds what are your thoughts on goals and objectives? Are you focused on growing a super large emergency fund? Grand kids college? What is the end game if it isn't to create a large inheritance pool?
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Old 10-19-2009, 03:18 PM
 
6,239 posts, read 4,721,373 times
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Your topics seem to cover a huge number of issues. In addition, everyone has a different financial situation. My wife and I have discussed this topic. If we spend less than our retirement resources will provide, the money will go to 3 funds: 50% to an emergency fund, 25% travel, and 25% for family member support. This last category could include help for emergencies or for college funds. The amount of inheritance we leave behind will depend on our lifespans and and overall costs, but especially healthcare costs. We have told our kids not to expect an inheritance. Hopefully that will not be the case and we are able to pass on some financial help.

I am not wise enough to have a solid investment strategy for my retirement funds or for any additional income that we are able to convert to savings. Like everyone else, I want a good solid return on investment as a source of income and as a hedge against future inflation. I also want security with safe investments not likely to be seriously affected by economic downturns. Since there seems to be nothing with a high yield and safety, I will attempt to diversify in the hopes of partially satisfying both objectives.
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Old 10-19-2009, 03:32 PM
 
Location: Sierra Vista, AZ
16,133 posts, read 20,817,345 times
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Quote:
Originally Posted by TuborgP View Post
I realize this thread is not for everyone and those it is for are very fortunate and blessed. However it is worthy of discussion for some. Once retired and you have a positive cash flow independent of your investments what strategies and suggestions do you have for investing the extra dollars? Those with pensions and social security may well find themselves not needing to draw down their investments and in fact are still contributing to their investments. What are your thoughts on risk tolerance and fund balance? Tax free municipals, growth funds what are your thoughts on goals and objectives? Are you focused on growing a super large emergency fund? Grand kids college? What is the end game if it isn't to create a large inheritance pool?
I guess I too am blessed with the good fortune of having a positive cash flow 12 years into retirement. Initially I had my money in CDs but the interest in them has dried up. I thought I'd buy a forclosure as a hedge against inflation but that turned out to be another suckers game. Most investments wind up costing by the time the managers take their cut.

I'm still thinking about Real Estate as the best hedge if inflation hits.
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Old 10-19-2009, 03:41 PM
 
29,772 posts, read 34,856,103 times
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Quote:
Originally Posted by jrkliny View Post
Your topics seem to cover a huge number of issues. In addition, everyone has a different financial situation. My wife and I have discussed this topic. If we spend less than our retirement resources will provide, the money will go to 3 funds: 50% to an emergency fund, 25% travel, and 25% for family member support. This last category could include help for emergencies or for college funds. The amount of inheritance we leave behind will depend on our lifespans and and overall costs, but especially healthcare costs. We have told our kids not to expect an inheritance. Hopefully that will not be the case and we are able to pass on some financial help.

I am not wise enough to have a solid investment strategy for my retirement funds or for any additional income that we are able to convert to savings. Like everyone else, I want a good solid return on investment as a source of income and as a hedge against future inflation. I also want security with safe investments not likely to be seriously affected by economic downturns. Since there seems to be nothing with a high yield and safety, I will attempt to diversify in the hopes of partially satisfying both objectives.
This is just the type of response I was interested in reading. There is not much written about this and yes the possibilities are multifold. Your plan is broad and encompasses multiple goals and is helpful to others.
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Old 10-19-2009, 03:44 PM
 
29,772 posts, read 34,856,103 times
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Quote:
Originally Posted by Boompa View Post
I guess I too am blessed with the good fortune of having a positive cash flow 12 years into retirement. Initially I had my money in CDs but the interest in them has dried up. I thought I'd buy a forclosure as a hedge against inflation but that turned out to be another suckers game. Most investments wind up costing by the time the managers take their cut.

I'm still thinking about Real Estate as the best hedge if inflation hits.
Your words are wise for those of us still a few years behind you. If we play it to conservative inflation will eat up any gains. How are you planning to play real estate? These are the kinds of questions people need to think about and I am sure that a number of people great thoughts like the ones that have been shared so far.
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Old 10-19-2009, 04:12 PM
 
71,507 posts, read 71,674,131 times
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Quote:
Originally Posted by TuborgP View Post
I realize this thread is not for everyone and those it is for are very fortunate and blessed. However it is worthy of discussion for some. Once retired and you have a positive cash flow independent of your investments what strategies and suggestions do you have for investing the extra dollars? Those with pensions and social security may well find themselves not needing to draw down their investments and in fact are still contributing to their investments. What are your thoughts on risk tolerance and fund balance? Tax free municipals, growth funds what are your thoughts on goals and objectives? Are you focused on growing a super large emergency fund? Grand kids college? What is the end game if it isn't to create a large inheritance pool?
i use a very conservative mix of stock funds , bonds, commodities, real estate....each wiill still get a piece..

actually the bucket system i use dictates where the extra dough goes,

if my 7 years of safe money bucket is filled and my 7 years of income funds, bonds , and bond funds are filled then the extra money gets divided up among the riskier parts of my portfolio in bucket 3.


i tried to give you points tuborg for an excellent topic choice but it wont let me give you anymore
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Old 10-19-2009, 04:20 PM
 
29,772 posts, read 34,856,103 times
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I was waiting for you to weigh in and your response is sort of like I expected. Thank you about the thread it dawned on me while trying to figure some new investments out that there wasn't a lot of literature and discussion out there. Most of it is about folks not having money.
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Old 10-19-2009, 04:26 PM
 
Location: Planet Eaarth
8,955 posts, read 17,696,359 times
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Do not trust the stock market or other investments to protect your savings or investments.

http://www.city-data.com/forum/busin...-illusion.html
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Old 10-19-2009, 04:27 PM
 
71,507 posts, read 71,674,131 times
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i can eleborate a little more as to my mechanics of it but i didnt want to bore those that just wanted a general idea without the specifics
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Old 10-19-2009, 04:28 PM
 
71,507 posts, read 71,674,131 times
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Quote:
Originally Posted by Tightwad View Post
Do not trust the stock market or other investments to protect your savings or investments.

http://www.city-data.com/forum/busin...-illusion.html
isnt that article by chicken little? ha ha ha
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