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60 years old, hoping to retire in 2 years. Have lots of cash, bout 800K.( no debt, house/cars paid off). Want to invest in market at some point but the fact we have been over duefor a recession then factor in Covid on top that that........Not sure what to do at this point.
I know I need to get my $$ growing, but don't want to get into the market if it's going to tank over the next year or two.... just about the time I want to retire.........
I have run the numbers (various retirement calculators) and if I can get a solid 4% returns, on what I have to invest, it will work to fund my retirement for the next 25-30 years to retire at age 62.
Been looking at an Annuity, 10 year, average return is 4.95%, for some of the money, but puts your money in jail for 10 years too!!
60 years old, hoping to retire in 2 years. Have lots of cash, bout 800K.( no debt, house/cars paid off). Want to invest in market at some point but the fact we have been over duefor a recession then factor in Covid on top that that........Not sure what to do at this point.
I know I need to get my $$ growing, but don't want to get into the market if it's going to tank over the next year or two.... just about the time I want to retire.........
I have run the numbers (various retirement calculators) and if I can get a solid 4% returns, on what I have to invest, it will work to fund my retirement for the next 25-30 years to retire at age 62.
Been looking at an Annuity, 10 year, average return is 4.95%, for some of the money, but puts your money in jail for 10 years too!!
What would you do?
Where did you have the money invested to accumulate 800K?
You could dollar cost average into a balanced fund, like vwiax (40/50), or vwelx (60/40). I’m dca-ing back into vthrx. If the market tanks in the next year you could move a significant amount, which is what I plan to do.
I'd suggest looking for big companies that have a long record of paying dividends in the range of 3-6%, and that fared well during market drops in the last few years (and especially earlier this year). They are often called dividend aristocrats.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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Depends. You got to decide if you want an Asset based retirement (SWR), an Income retirement, or a combination of the two.
We chose a combination with heavier weighting towards Income.
Currently, gross, 40% Income from secured products of SS, pension, GLWB annuities; 60% from Rentals. 0% from Assets-Stocks and annuities not in Income mode but have Market Value. Sometime we expect to be 40% secured products, 40% Rentals, 20% stock based. +/- 10%.
If you want annuities (many types) for VA and fixed-indexed, they IMO, have their "best" performance for Income, when the Stocks are relatively high (VA) and Bonds (are at low rates)deferred fixed-index, fixed, and SPIA. The "better" performance is the opposite-when stocks are low and bonds are high. DUE DILIGENCE. I spent months looking and analyzing. Several informative books pro and con are available.
Age 70/73. First annuity purchased fall 2008. Last 2012: 11 GLWB annuities purchased. 9 remain; 4 in withdrawal mode; 2 closed; 3 are still in accumulating mode; 2 will be withdrawal-suspended for 2020 but a double withdrawal in 2021 (tax purposes). LTCi purchased at age 52/55. Low leverage on rental but haven't raised rents in 4 years. Seattle region.
Trading accounts (100% at risk) are now holding 40-60% cash. Against my ethos to be so much in a cash position but a lot this money is Wife's funds and she wants security, even though we have adequate retirement income.
Due Diligence, What ever you decide.
Last edited by leastprime; 08-26-2020 at 01:00 PM..
How long has the cash been sitting out? Why didn’t you buy in March?
Agreed. I bought an index fund for the Dow in March and it is now up 20%. I put a laddered stop loss on it, but one reason I might not need it is the DOW dumps underperformers and replaces them. It is weighted to increase in value over time.
Frankly, I'm more concerned about near term inflation devaluing the buying power of the dollar than solid stocks. YMMV
I'd be making small targeted buys of dividend stocks in sectors that are recession-resistant.
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