Hi all,
Love reading all the comments and advice from the members on this website. There seems to be a high level of wisdom that this site has compared to most of other sites that I've perused. Also the people on this site seem more genuine and sincere, where other sites are rampant with ego maniacs and bitter hostile comments.
Here's my question today. Under my traditional IRA, which makes up my portfolio, I have a mix of 68% diverisified stock funds, 15% bond funds, and 17% in a money market cash account. I annually draw about 4% from the cash account each year to supplement my pension. I usually replenish the 4% with gains acheived from my equities. So each year, that leaves about 13% that's sitting idle not really earning anything. That cash cushion gives me a little piece of mind that even if the whole market crashed, I would have something left in reserve. The counter to that, of course, is the fact that the cash is not earning anything.
Would I be better off trying to put some of that into a 5 year CD, where I could earn an extra 2% on the cash portion ? Or simply leave it, and have money available to buy stock when(if) there's a correction (which everyone believes is coming at some point in the next year or two).
Appreciate to hear your thoughts.
Love reading all the comments and advice from the members on this website. There seems to be a high level of wisdom that this site has compared to most of other sites that I've perused. Also the people on this site seem more genuine and sincere, where other sites are rampant with ego maniacs and bitter hostile comments.
Here's my question today. Under my traditional IRA, which makes up my portfolio, I have a mix of 68% diverisified stock funds, 15% bond funds, and 17% in a money market cash account. I annually draw about 4% from the cash account each year to supplement my pension. I usually replenish the 4% with gains acheived from my equities. So each year, that leaves about 13% that's sitting idle not really earning anything. That cash cushion gives me a little piece of mind that even if the whole market crashed, I would have something left in reserve. The counter to that, of course, is the fact that the cash is not earning anything.
Would I be better off trying to put some of that into a 5 year CD, where I could earn an extra 2% on the cash portion ? Or simply leave it, and have money available to buy stock when(if) there's a correction (which everyone believes is coming at some point in the next year or two).
Appreciate to hear your thoughts.