freedom2022
Recycles dryer sheets
- Joined
- Sep 24, 2021
- Messages
- 134
Hi all,
I will receive a lump sum payment for my Defined Benefit Pension Plan, which will amount to half of my investment assets. I need to decide where to invest it. I aim for a 50/50 asset allocation. While I understand the wisdom of not attempting to time the market, the impact of near-zero interest rates is becoming increasingly apparent. This unprecedented monetary policy leaves us uncertain about its consequences, as history offers no guidance. Two years ago, the Fed claimed inflation was transitory, but now they suggest interest rates may decrease further, with no clear timeline. My intuition suggests interest rates will remain high for some time, indicating the market may be overvalued presently.
My options are as follows:
Thanks.
I will receive a lump sum payment for my Defined Benefit Pension Plan, which will amount to half of my investment assets. I need to decide where to invest it. I aim for a 50/50 asset allocation. While I understand the wisdom of not attempting to time the market, the impact of near-zero interest rates is becoming increasingly apparent. This unprecedented monetary policy leaves us uncertain about its consequences, as history offers no guidance. Two years ago, the Fed claimed inflation was transitory, but now they suggest interest rates may decrease further, with no clear timeline. My intuition suggests interest rates will remain high for some time, indicating the market may be overvalued presently.
My options are as follows:
- Place the money in a one-year GIC and make a decision next year.
- Invest the money in a money market fund and make decisions as circumstances evolve.
- Allocate some funds to stocks and the remainder to a money market fund or GIC.
Thanks.