pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Hello, Retired w/working spouse. Have slightly considerable savings / retirement we don't touch (unseen situations ??). We had a talk a cpl days ago and just can not stomach the markets any longer. We feel our nest egg should be sufficient to take us through retirement (health care). Actually when/if we start receiving SS will be like a raise above our current income. We both are thinking a CD type investment will let us quit fretting over our savings decisions. Currently brokered CD 10yr are @ 3.05% and would allow some inflation protection. W/SS, we look very, very good unless something really bad should happen. Without SS, we would be living how we are currently which is comfortable. With the current markets, would it be best to wait a bit to see if interest rates ever rise? Would the rise be so slow it wouldn't make much of a difference anyway? Any other suggestions appreciated. IF, there were a BIG correction, we may be brave enough to put in around 10% possibly.
I would not do a SPIA as it will lock up your money and you will not have access to it if you need a lump sum for some reason.
I helped BIL's mom get out of an underperforming deferred annuity she had and into Wellesley with a monthly automatic redemption that supplements her SS so she is more comfortable... sort of a roll your own SPIA but she has access to the principal if she ever needs it for a new roof or whatever.
Or if you want super-safe, then online savings or CDs are probably the way to go. Another good alternative might be target maturity bond investment grade corporate funds... the 2020 maturities yield about 2.25%.
