Where to put $37K retirement check

[MJ]

After being laid off recently, I finally got the paper work to release $37k from my old profit sharing retirement plan. I don't plan to touch this money until reqired in 13 years so I want it to grow 7 to 9% within moderate/conservative investments.

Any suggestions?
My mattress is already much too firm to add more paper.

MJ

 

[GTM]

MJ although the returns would not be what you're hoping to get I would consider $30,000 in US Series I bonds.

This period the fixed portion is 1.2% plus the inflation rate totaling 4.8% tax deferred and as safe as any investment can be.

May be worth considering.

 

[Mr._johngalt]

Buy a big boat or a sports car. You might be dead in 13 years.

JG

 

[MJ]

Buy a big boat or a sports car. You might be dead in 13 years.
JG

Hey JG, I might also be alive for another 35 years like my dad is. Don't feel like eating dog food in my twilight years. Although according to some movies I have seen, dog biscuits might be satisfying.

MJ

 

[Spanky]

I like GTM's idea about IBond. It's safe, tax deferred and exempt from federal tax despite its return is less than 7 to 9% that you are seeking. To get that kind of return, you may consider the health care, biotech or consumer sectors. These sectors should do well according to the experts.

Spanky

 

[MJ]

Since this retirement money will be rolled into a tax deferred IRA account, will I be able to buy IBonds within that account?

 

[preben]

A good balanced fund like Dodge and Cox or Wellington - or simply DIY with a couple of index funds or ETFs. With ETFs something like:
VTI+EFA+AGG. (and then add EM/reits/commodities for taste!) Cheers!

 

[Mr._johngalt]

Hey JG, I might also be alive for another 35 years like my dad is. Don't feel like eating dog food in my twilight years. Although according to some movies I have seen, dog biscuits might be satisfying.

MJ

Live like you may die tomorrow, but also allow for the possibility that
you might make 100. It's good advice, but very difficult to achieve.

I promised REW that I would try to avoid morbidity today. But,
yeaterday I had Mothers Day dinner with Mom, Dad and my only
first cousin. I used to hunt with her husband and his best friend;
both died at about 45. They never got a chance to even think
about ER. The other side of the coin is my parents; 87 and 85
and still quite independent with no major health problems.
We covered the whole gamut yesterday, including wills,
assisted living, distribution of personal property, etc. I explained
that at some point I would be meeting with an "eldercare"
attorney. My parents are pretty clueless about all of the nuances
and it's a very touchy area.

JG

 

[Spanky]

Since this retirement money will be rolled into a tax deferred IRA account, will I be able to buy IBonds within that account?

MJ,

For tax deferred account, I would choose a TIPS fund (Vangaurd has one).

Spanky

 

[Eagle43]

Why not Vanguard Target Retirement 2015 Fund (VTXVX)? An expense ratio of 0.22%, and holdings in bonds, domestic and international stock indexes, plus inflation-protected securities, you cover the bases conservatively.

 

[laurence]

That or Wellesly. Don't buy the sportscar, it screams, "I have shortcomings!"

 

[Mr._johngalt]

That or Wellesly.  Don't buy the sportscar, it screams, "I have shortcomings!" 

Ah, sports cars. Don't own any now but I'd like to. Lots of memories.

1970s Triumph TR4 and Corvette T-top
1980s Fiat Spyder (gave it to my daughter)
1990s Mazda Miatas (2) gave one to my youngest daughter

Had a blast with all except the Fiat. It was in the shop more often than not.

JG

 

[unclemick]

Bad bad boys - some of us never grow up!

1960's Datsun 2000 rag top roadster.
1970's used XKE 2+2 coupe(1967)
1980's Camaro SS (1969)
1990's GEO Storm GSI

I have a 'free' GEO Storm(1992) sitting in the yard - just begging for a 12 valve plus turbo Isuzu drop in engine.

My neighbor to the right -  Nova and Camaro sitting not ready for prime time(he's a trucker) - big wide tires and big V8's waiting to taste the dirt oval.

Neighbor to left - goes to meets with his 'baby' - 1955 restored Thunderbird.

Both in their 50's - NOT ER'd - still working.

Hmmmm?

 

[MJ]

Thanks for the suggestions.
I was wondering if PFCU 5% CD would be a better alternative to Wellesley or TR 2015 over the next 2 years. As you may know PFCU allows you to close out IRA cds without penalty after the age 59 1/2.

MJ

 

[Spanky]

My sport cars memory:
1965 MGB
1969 Olds 442


Spanky

 

[cute fuzzy bunny]

I can confirm that dog biscuits, at least the good ones I get, dont taste too bad.

 

[MJ]

But are they cheaper than people food?

 

[cute fuzzy bunny]

Way cheaper. I get a very good quality biscuit for about $10 for 15lbs and very good quality dog food for $16 for a 40lb bag. Either would be more nutritionally balanced than what I usually eat...

I can get back to you with an actual study (admittedly small) in a couple of years. There are no shortage of dog biscuits and bowls of food lying around. Baby is on the cusp of learning to crawl. Draw your own likely conclusions...

 

[unclemick]

Hmmm

Reminds me of my brother in law mining engineer - a couple of energy crises ago - bumber sticker - Let the bastards freeze in the dark - the - and eat dog food part was left off for brevity.

BTY - Wellesley is good or one of the Target Retirement Series. The other forum mentioned a 'whole world ETF' coming soon - I forget whose.

Or just park and wait to make up your mind.

 

[MJ]

The main problem I see eating dog biscuits during my twilight years will be the dull condition (or lack) of my canine teeth. I guess I can soak the biscuits in warm milk to soften them up.

Yummy

MJ

 

[cute fuzzy bunny]

I can get you a heck of a deal on baby formula to soak those biscuits in...

 

[Calgary_Girl]

My sport cars memory:
1965 MGB
1969 Olds 442


Spanky

Hi Spanky.

The '69 Olds 442 (W-30 preferred) is my husband's dream car. He's always on the prowl to find one in good condition. He's currently restoring a '71 Cutlass and biding his time until the 442 comes along.

 

[laurence]

Man, now everybody is going to think I'm a fuddy duddy. When I read "sports car" I was thinking a red Nissan ZX with a guy in a members only jacket behind the wheel. You guys are all talking about works of art, that's different! My buddy owns a perfectly restored 65 T-bird, I feel like a million bucks riding shotgun in that!

 

[Mr._johngalt]

Re. the dog food thng, my buddy and I used to sample the
Gravy Train on our way to feed his Dad's hunting dogs
(this was 45 years ago). Don't think we suffered any ill effects
as a result, although I do sometimes get the urge to mark the shrubbery

JG

 

[cute fuzzy bunny]

Hmmm...I think i've detected some ill effects, but I wasnt aware that dog food consumption could cause loss of blood flow to the brain...