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Old 06-20-2016, 07:19 PM   #41
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I am one of the "Stock Market" Avoidance team. While we will not make more money than some. We have been very lucky with the "right" CDs. In 1991/2 I invested ALL our retirement money in 7 - 9% CDs for 10 Years. I was poo poo'd by all the "smart" money I knew at the time. (A SoCAL Special at the time forgot where, I think it was OC Credit union). That virtually set up us up for our retirement. Unfortunately when they matured in 2001/2 Interest rates were only ~5% I slung it all in at between 4-5% for 5 years. After that I flopped about in short term money vehicles convinced the rates would go up, they did not. Then in around 2013/4 I jumped on a PenFed 3% 5 Year Special which is where ALL our non essential After Tax Money lives now. Currently Both DW and My IRA's are currently making 3.1% average. We have not regretted it one bit. Honestly, we have not noticed any significant inflation causing us to re-think things. We totally missed all the market crashes (and jumps, that in some cases only made folk back what they lost in the crashes)

We sleep very soundly and do not worry about a thing (Except Healthcare, but that is another story)

We keep 4 years living expenses in cash. We both retired once in 2003 for 5 years to go sailing, and then finally again in 2012. While we worked we saved as much as possible.

The moral of this story is you do what fits your own lifestyle and tolerance, and as long as you get a good nights sleep and do not want for anything, you Won!


Some people can just not put their feet in another persons shoes, to understand no matter "what the math may say" a simple conservative strategy of money can be all one wants or needs. Good for you, Shok! You saved and accumulated enough in your lifetime to "invest" your money on your own terms as you see fit. That is enough of a reward in itself.


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Old 06-20-2016, 07:20 PM   #42
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In addition to what I already have? VTI.
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Old 06-20-2016, 07:24 PM   #43
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Wine, women and song.

Hookers and blow.

Or just invest it. Ugh, so boring -
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Old 06-20-2016, 07:25 PM   #44
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Wine, women and song.

Hookers and blow.

Or just invest it. Ugh, so boring -


Uhm, Robbie, I think you forgot one thing on your spending list....Solar Panels!


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Old 06-20-2016, 07:55 PM   #45
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Well, that works for me, but I have high cost juice.

On the other hand I did go for the one quote highest cost option I could find.

And I bought an ounce of pot today for $350.

But I got 2 free joints!

Life is good -
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Old 06-21-2016, 11:26 AM   #46
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I'm in similar situation to OP, having sold property and need to do something with proceeds. However, at 62 years old, different time frame.

I just put bulk of $ into Barclays 5 year CD @ 2.05%. Six month interest penalty to get out early and you can do partial redemptions.

Overall Equity allocation is still above 50%.
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Old 06-21-2016, 12:40 PM   #47
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One Day, my bias admittedly is toward your viewpoint. I do not own CDs anymore, but up until a few years ago that was where my money was at. It is now not in common stocks either, but preferred utility stocks that yield 6% or so. Not recommending that to you, just admitting by bias leans your way.
I suspect some people glanced over your key points you mentioned later.... 1) Rental Income (mostly inflation protected income) 2) Frugality 3) Limited needs 4) Flexibility to cut spending.
Any decision has upsides and downsides to choices... But being a low cost of living rural person myself, and being around people like you I would make a substantial wager with anyone I could that the next 40 years you would do just fine doing what your initial thoughts are.
That doesn't mean of course that maybe you should not consider equities at some point. Its just I know "your type", been around them my entire life. And none of them are heading for homelessness under a bridge.
Its the ones that head into retirement NEEDING 7% market returns the rest of their life to make their retirement work are the ones I worry about.


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lol, naw we read all that but Op last sentence was asking an opinion? I love post that ask for opinions then when you give opinions opposite to what they plan on doing all along seem baffled.

I think op, had already made up his/her mind to invest in cd's all along and just wanted some sort of validation not opinions.

Her/his last sentence was "your thoughts"? If some one else ask me what to do with 3/4 of a million bucks they won't need for quite a number of years my answer will probably never be stick it in a cd.
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Old 06-21-2016, 02:25 PM   #48
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lol, naw we read all that but Op last sentence was asking an opinion? I love post that ask for opinions then when you give opinions opposite to what they plan on doing all along seem baffled.

I think op, had already made up his/her mind to invest in cd's all along and just wanted some sort of validation not opinions.

Her/his last sentence was "your thoughts"? If some one else ask me what to do with 3/4 of a million bucks they won't need for quite a number of years my answer will probably never be stick it in a cd.


True, and no argument from me... You answered in the literal context of the question. After having read and knowing people like OP, I used the context of their situation and desire, to change the question more to... "Am I wrong to invest in CD's". Generally when asking for opinions, many usually have a general mindset, but will read to see if something can move them off their initial thoughts. Nothing wrong with that. I do it all the time. I ask for opinions with my mind mostly made up. If someones idea blows me away, I will change. If not, I stick with my initial inclination. Nothing wrong with thinking and then deciding to "stick with the plan".
But that also isn't an insult to other ideas that may be presented before final decision is ever made.


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Old 06-21-2016, 04:34 PM   #49
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lol, naw we read all that but Op last sentence was asking an opinion? I love post that ask for opinions then when you give opinions opposite to what they plan on doing all along seem baffled.

I think op, had already made up his/her mind to invest in cd's all along and just wanted some sort of validation not opinions.

Her/his last sentence was "your thoughts"? If some one else ask me what to do with 3/4 of a million bucks they won't need for quite a number of years my answer will probably never be stick it in a cd.
I've acknowledged that I had my mind made up, sorry you didn't catch that. But I did change my mind, I posted earlier that I plan on putting $500k of it in CDs and $100k in to a vanguard utility fund and $100k in to Vanguard bond fund. So I did take some advice and as I've said before, thank you all for your input and yes I should have worded it different, have a good day.
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Old 06-26-2016, 07:23 PM   #50
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Wine, women and song.
I can't sing and I don't drink wine. Considering what is left on your list, one out of three is okay with me.
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Old 06-26-2016, 08:53 PM   #51
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I've acknowledged that I had my mind made up, sorry you didn't catch that. But I did change my mind, I posted earlier that I plan on putting $500k of it in CDs and $100k in to a vanguard utility fund and $100k in to Vanguard bond fund. So I did take some advice and as I've said before, thank you all for your input and yes I should have worded it different, have a good day.
In the current environment this makes great sense to me.
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Old 06-27-2016, 02:52 PM   #52
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Right now I have $700k that I need to invest, I plan on retiring in the next 5 years and will have another $5-700k by that time. I'm in my mid 40s, I'll also have about $20k a year in rental income and my family and I can live fairly well here in rural Ky off of $50-60k a year. Very seriously thinking about CDs, local bank has a 2.1 % cd. Your thoughts ?
Hmm.

I don't care too much about what you do with the money you currently have other than I wouldn't want you to lose it.

I will assume that you will retire at age 50 and with $1.2 million at that point.

I would put 80% of that in stocks within mutual funds and 20% in CDs (since you seem to like them) and/or bonds.

At age 50, you potentially have a long time to live yet, so I would take 3% ($36,000) from that pile and add to it the $20,000 from the rental and live on that $56,000 (yes I know there will be taxes). Even being debt free and growing your own food, you won't be living large on that, but you can manage assuming you don't have other big money drains that you haven't mentioned. I wouldn't take any more than 3% unless there's a big stock uptick, and I would plan to try not to deplete your pile until age 60 minimum. Then, if you want to plan for 30 more years of life, figure out if you can or need to take out more. Once you hit 62, you can take early SS if you like.
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Old 06-27-2016, 04:20 PM   #53
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Oneday, We all know investing is not a 2 day proposition... But if you have felt tremendous relief not being caught in the recent downdraft, and not concerned you may be losing out on a "bargain", then you have just reinforced to yourself you have made a wise decision.



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Old 07-06-2016, 05:46 AM   #54
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I'd fund a 'bucket' with several years of living expenses, CD's or whatever vehicle you prefer. The rest invested at your desired/selected asset allocation.

I understand the caution heading into retirement. We went conservative a few years ago and are over-weighted in T_bills compared to our target allocation. This in addition to 3-4 years of living expenses sitting in two different savings accounts. It just helped me sleep better at night.
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Old 07-06-2016, 12:04 PM   #55
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Oneday, We all know investing is not a 2 day proposition... But if you have felt tremendous relief not being caught in the recent downdraft, and not concerned you may be losing out on a "bargain", then you have just reinforced to yourself you have made a wise decision.



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Reinforced, indeed. I don't seem to have a lot of faith in our markets at this time. Thank you all for your input.
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Old 07-06-2016, 12:52 PM   #56
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Reinforced, indeed. I don't seem to have a lot of faith in our markets at this time. Thank you all for your input.


You do not have to feel bad for being conservative. I have a friend whose dad is very wealthy (though you cant tell by his house or clothes he wears). If he couldn't put all his money in the local banks, his second and only other option would be building a huge safe to put in his house...Online banking CDs? Thats crazy talk to him...Where is my money at and how do I know I can ever get it? So see, you are way more of an aggressive investor than him!


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Old 07-26-2016, 10:35 AM   #57
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Right now I have $700k that I need to invest, I plan on retiring in the next 5 years and will have another $5-700k by that time. I'm in my mid 40s, I'll also have about $20k a year in rental income and my family and I can live fairly well here in rural Ky off of $50-60k a year. Very seriously thinking about CDs, local bank has a 2.1 % cd. Your thoughts ?
I can't tell you what I would do, I can tell you what I'am doing.
In 2012 I picked up 100 share of $BRK/B at $80.00 p/s I picked up a little more during the BRIXIT event. At the moment it is value at $144.40 p/s.

My thinking can't beat Warren Buffet, and so far it's been true for me. He is making me wealth.

The other Item I hold is $PGX an ETF from Power Shares. it pays $0.07 per share/per mont at the current price of $15.30...about a 5.73% annual yield. the Divi is payed monthly. With Schwab $PGX has no commission so that is $8.95 more to invest.

I hope this helps...just my 2cents.
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Old 07-26-2016, 12:41 PM   #58
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You can make a complete diversified portfolio with that amount. You mentioned having rental property. How about more real estate?
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Old 08-06-2016, 11:17 PM   #59
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If you don't the heart for the stock market then bonds is your next best. I have about 500K in insured A rated MUNI bonds, very safe bet with average 4.5% return annually with no federal tax and some with no state tax. My goal is to protect my money from inflation.
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Old 08-07-2016, 07:28 AM   #60
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If you don't the heart for the stock market then bonds is your next best. I have about 500K in insured A rated MUNI bonds, very safe bet with average 4.5% return annually with no federal tax and some with no state tax. My goal is to protect my money from inflation.
How many years out do you need to commit to in order to get 4.5% return on an A rated munibond? Are you sure that this is protecting from inflation 10, 20 ... years from now?
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