Guaranteed Investment Advice in a Roth IRA

[CRLLS]

Following my thread on my DIY 529: https://www.early-retirement.org/forums/f28/using-a-roth-for-a-diy-529-ish-plan-120458.html

I now have 20K each in 3 separate Roth accounts being used as those DIY 529 accounts. I could use some advice as to the best short-, medium- and long-term investments for each of those accounts. One account might require withdrawals of 25% as early as 6 months, and then every year for 3 years. Alternatively, that might be 4 years for total withdrawal. The other 2 accounts have at least 12 years before any withdrawals would be started. I'll likely keep at least the first year's amount in SPAXX until grandchild +1 decides on which school she will be attending this Fall and if she needs the $$ for that.

I am currently thinking CD's. I can get 1-year CDs at Fido at 5.15%. Should I be looking at other types of investments within the Fido family of offerings? Consider they are in Roth accounts, the various timeframes and trying to keep up with, or outperforming inflation.

I might consider a 50/50 AA, or similar, for the 2 longer term investments, maybe.

 

[OldShooter]

... I might consider a 50/50 AA, or similar, for the 2 longer term investments, maybe.

The general structure ought to be "liability matching" with short-term assets matched to short-term needs, etc.

Within that strategy you can look at an overall AA with, for example, equity assets (aka index funds) matched to long-tern liabilities. IOW, the AA is not per account, it is over the totality of the portfolio. Your matching should lead you to an overall AA or at least a starting point. IMHO anything beyond 5 years, certainly 10, should be 100% in equities.

And, as time moves forward and liabilities get closer, the assets need to be adjusted to suit.

 

[pb4uski]

For the earlier account you could consider high quality corporate bonds selected so maturities match the expected cash needs. Canadian banks like TD, Bank of Montreal and RBC are issuing such bonds as well as some of the too big to fail US banks.

For the longer term money look at investment grade preferreds from the larger, well known and highly rated US banks and insurers paying careful attention to yield-to-call for any callable issues. I've been buying these from 6-8% yields and the prices should be stable in a declining interest rate environment.