stash ideas

[Mrain240]

63 yr old to retire in 2 weeks . Have 1.2 mil in 401k/sep ira, and need ideas on where to put 300 thousand extra savings cash for safety and 3-5% growth for 12 months. Ny thoughts?

 

[haha]

63 yr old to retire in 2 weeks . Have 1.2 mil in 401k/sep ira, and need ideas on where to put 300 thousand extra savings cash for safety and 3-5% growth for 12 months. Ny thoughts?

Santa Klaus Bank?

 

[gcgang]

Set the flux capacitor for 1998 and buy a one year 5% CD.

barring that, if safety is important settle for 1%.


Sent from my iPhone using Early Retirement Forum

 

[wingfooted]

2200 shares of AAPL - as much as a sure thing as you are going to get in this market.

 

[aja8888]

One word..."plastics"

(Oh, that was 40 years ago)

 

[robertf57]

63 yr old to retire in 2 weeks . Have 1.2 mil in 401k/sep ira, and need ideas on where to put 300 thousand extra savings cash for safety and 3-5% growth for 12 months. Ny thoughts?

Sorry, that was the only thought I had

 

[Fermion]

I can't get you 3% to 5% over 12 months but here is the best I can do:

Open two investment accounts at Capital One. One for you and one for spouse if you have one. Put $125,000 in each and Capital One will give you $600 per.

Now you are at $1200/$250,000 or a 0.48% return (I think you have to leave the money with them 90 days.) Technically that is about a 2% annualized return with zero risk, and you can still put the money in something inside the investment account.

 

[Bamaman]

Congratulations on your retirement.

I'm right with you on your investment dilemma. I kept a year's withdrawals in a money market account and put the rest in medium conservative good ETF's.

 

[travelover]

I'm thinking about the same issue. I plan to sell my house and rent for a year, then re-buy. Having all that cash not even keeping up with inflation is a depressing thought.

 

[MichaelB]

So, am I the only one that thought this thread was about something else?

 

[douglasmfox1]

Purchase nice/new home with cash for $250k. Rent for $1,700+ per month. Profit $17,000+ annually.


Sent from my iPhone using Early Retirement Forum

 

[rbmrtn]

So, am I the only one that thought this thread was about something else?

Not at all

 

[Whisper66]

3-5% seems like a very optimistic return for anything I would personally call a "safe" investment. A safe investment to me would be either CD's or short term bonds, neither even close to 3-5% in today's market. Wingfooted mentions buying Apple stock which got me to wondering about something I've considered doing before but haven't chosen to since I'm a simple longer term investor. The idea is just finding an index that has a recent history of a strong rise (VMVAX is one I own now for example), buy into it and then put a stop order on it such that if it drops 2% (pick your own number), it automatically sells. Certainly wouldn't guarantee 3-5% but would at least have a shot at it while limiting risk.

 

[travelover]

Not at all

Yea, I thought it was about mustaches, too.

 

[frayne]

So, am I the only one that thought this thread was about something else?

I always kept my stash in a cigar box under the coffee table next to my album covers.

 

[Sarah in SC]

Psssst: Altoids tins...

 

[heeyy_joe]

Hold the cash and get a little more aggressive in your 401k. I am in the same boat as you, so I use a self directed brokerage 401k and bought 300k of blue chip dividend stocks averaging 3.5% yield. I hold the cash as a hedge against a big market correction.

 

[pb4uski]

63 yr old to retire in 2 weeks . Have 1.2 mil in 401k/sep ira, and need ideas on where to put 300 thousand extra savings cash for safety and 3-5% growth for 12 months. Ny thoughts?

There is no such thing as a free lunch.

Why 12 months? Are you going to need the money over the next 12 months?

If you want safety and your time horizon is only 12 months then the best you can hope for is about 1% or perhaps a bit less.

If you need 3-5% growth but can take on some risk, then Wellesley might be a good choice.

 

[frank2009]

Would you need the entire 300K in 12 months? If so, a 1 year CD is about your only risk free choice. As many have indicated forget 3-5% gains. Can you split the 300K? Maybe half in a CD, the other half in fund like Vanguard Retirement Income; the fund has averaged over 5% over the past 10 years. It is comprised of 70% fixed income, 30% stock funds. Far from zero risk though. THere's no free lunch here.

 

[Mrain240]

So, am I the only one that thought this thread was about something else?

Sorry to change subject of board. I'm a newbie and finding my way on this retirement site.

 

[Whisper66]

Nah - you didn't change subject of the board...MichaelB's comment was about the possible alternative meanings of title of your post (stash), nothing to do with the content of your question relative to the thread. Good question that several people struggle with.

 

[Hermit]

I had the same issue when I retired about 2 years ago. I had a bunch of cash from selling my house and plans to build another house. I just put the cash in savings accounts earning about 1%. I pull cash out as I need it for construction. I don't make much money, but it is available as I need it.

 

[Mrain240]

Yep

We all seem to wind up in similar situations, whether it's 100 dollars or 100 million. If we're on this board, we trying to make our money grow while we keep a smile on our face. Thanks for the reply, gonna learn to maneuver this board soon.