Good time to be in cash

[Craig]

Agreed. I hope the stock market stays boring for the next 5 years and then gets very exiting just after I quit working full time.

That's what concerns us a little ... that exiting part.

Just ribbing you, Yrs to Go

 

[Gone4Good]

That's what concerns us a little ... that exiting part. 

Just ribbing you, Yrs to Go

Mangled Chinese proverb: "may you invest in exiting times"

 

[SteveR]

I was cleaning out some files last night and ran across a 401K statement from 1997. It is hard to believe that it has gone up over 300% from then to now and that is counting a 30% hit in company stock in 2000. I sure gave me pause and made be happy I jumped into diversification and maxed out my contributions over these past years. I also found one from 1988 and it was essential zero back then. Thanks to my first wife. :

I am floating some CDs waiting for another jump in the medium and short range rates to go up a bit. This is my emergency fund and is also my first year of ER income so I am not risking it much; just rolling a 3 month jumbo and a couple of other 6 month CDs....a mini ladder of sorts. We don't touch this for anything. We use our MM account for cash that we think we will need in 3-4 months and the rest goes into another CD. I am looking at Ibonds as a longer term approach but I have not convinced myself that this is what I really want to do yet.

 

[brewer12345]

I was cleaning out some files last night and ran across a 401K statement from 1997.  It is hard to believe that it has gone up over 300% from then to now and that is counting a 30% hit in company stock in 2000.  I sure gave me pause and made be happy I jumped into diversification and maxed out my contributions over these past years.  I also found one from 1988 and it was essential zero back then. Thanks to my first wife.  :

I have come to realize the same thing. It is interesting to see that the positions I have maintained the longest have the highest % of total unrealized gain. That tells me that despite going through a pretty ugly bear market, I'm not doing too badly. FWIW, I only started investing in 1999.

 

[renferme]

Would you feel better investing in equities today if stocks had posted double digit returns over the past five years? I wouldn't.

I like the idea that the economy is humming along, companies are growing, and all the while I'm paying less for stocks then I did in 2000.

.

I would definitely feel better if stocks had posted double digit gains the past 5 years. Why? Because I'm in retirement now and not in the aquirement of wealth phase. Right now, I want my investments to grow as I make withdrawals during retirement !
.

 

[retire@40]

I would definitely feel better if stocks had posted double digit gains the past 5 years.   Why?   Because I'm in retirement now and not in the aquirement of wealth phase.    Right now, I want my investments to grow as I make withdrawals during retirement !

You have it backwards.

You want double digit gains in each of the 5 years AFTER retirement. You don't want huge gains as you are acquiring. In fact, you may want losses in those years. That's what has actually made the past 5 years of sideways action in the market so nice for those who are still in the accumulation phase.

 

[SteveR]

You have it backwards. 

You want double digit gains in each of the 5 years AFTER retirement.  You don't want huge gains as you are acquiring.  In fact, you may want losses in those years.  That's what has actually made the past 5 years of sideways action in the market so nice for those who are still in the accumulation phase.

Buy low....sell high....Works everytime.

 

[Gone4Good]

.

I would definitely feel better if stocks had posted double digit gains the past 5 years.   Why?   Because I'm in retirement now and not in the aquirement of wealth phase.    Right now, I want my investments to grow as I make withdrawals during retirement !
.

That is an important caveat. You are absolutely right.

 

[yakers]

Theres that old timing thing again, which we're not supposed to do. I don't mind working in a down market for capital accumulation and I would like to retire into a rising market. Just need to know when that is so I can pull the plug at the right time.