CD Rates

mathjak107 said:
Even at 65 we have money we won’t eat with for two to three decades ….that is still very long term money , you have as much recovery time as you did in your younger years .

a 40 to 60% equity portfolio allows you enough short term and intermediate term money to be safe whilvkeep that long term money invested ….a 50/50 has never ever lost a penny in any ten or twenty year period or longer
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Yes, I know that, but feel for all those old folks who don't have that "decades" of long term money they won't have to touch. Its only then you really feel "ok" about shoveling it in the market and hoping you won't have to wait another decade to not lose any of it and hopefully might be able to keep up with inflation.

Somewhere between that option and the zero CD "savers" options should be a real OPTION for those folks, don't you think now? Like maybe a nice 3% for a couple year CD or something. We used to have that.
 

if people are planning to live off their portfolio over their lifetime they ALWAYS have the same long term money …

The math and allocation is the same whether they are drawing 4% of 250k or 4% of 2.5 million .

the ratio of short , intermediate, and long term money is the same..

a 50/50 provides the same longevity of the money , success rate of not failing and percentage of draw in both cases
 
Liberty said:
But, now, in weeks like this past one, it would be easy to see the market taking and inflation dive, hitting rock bottom and thentaking quite a while to grow it back. Not nice for old folks to be forced into putting so much of their savings into the market. Thank heavens we aren't in that position.
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We are in a volatile market now. It might tank this week but be right back up there next week. That is what I have seen with our accounts the past several weeks. For us, we can ride it out without too much problem. The problem comes when your risk tolerance is low and you don't want to put up with that up and down volatility.

You are right that there doesn't seem to be a decent return on "savings" type investments other than in the market. 😞
 

The markets Always have their "ups and downs". In many cases, I tend to believe the theory of "go away in May, come back in Sept". But the few times I've tried to "time" the markets, I've guessed wrong. I just accept the downturns, and hope for recovery. Staying diversified, and not stressing over every "glitch" seems to be the best approach....after all, there is nothing I can do to influence the markets.
 
Yes, Don. Don't believe you can "time the market". I tell those beginning to invest, just get in there and don't look back. So many don't invest though and then when its time for retirement to come around they just aren't ready. Really do feel for them.

Pedro mowed the 6 acres around this big joint yesterday and it looks like a green velvet park. We treasure each golden hour we have here, living the dream...lol. Would wish the same for others!
 
rkunsaw said:
I just sold some stock, and have the cash making almost nothing. I have a list of stocks I want to buy but most of the are at a high point right now. I'm hoping for a quick drop in the market so I don't have to keep so much cash for too long.
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Why not just put it into an index fund?
 
rkunsaw said:
I just sold some stock, and have the cash making almost nothing. I have a list of stocks I want to buy but most of the are at a high point right now. I'm hoping for a quick drop in the market so I don't have to keep so much cash for too long.
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Good luck...if you have the same experiences I've had in trying to time or predict the markets. If you are retired, and expecting to generate some income from the markets, I would think that investing in a diversified, and fairly conservative portfolio of mutual funds, would be far less risky than individual stocks. There are any number of good funds out there which have a long history of generating good positive returns. Let the "professionals" stress out over every rise and fall of the markets, while they try to keep your balance moving in a positive direction.
 
I've resigned myself to the fact that every time I put new money into the market it will drop before it begins to go up and create value for me.

The good news is that over time the trend has always been up.
 


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