Mulligan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 3, 2009
- Messages
- 9,343
Wanted input on how to maximize yield on $50,000. Here is the background.
1. I live off my monthly pension and thats it.
2. I have $65,000 and that's it. I will keep $12K in savings account (pays 0.05%, nothing basically) for my emergencies, house expeditures, etc.
3. I am monthly cash flow positive about $700 a month on my pension, so I plan on putting 3K in an index fund to start it, then dollar cost average $300 out of my monthly pension to build that up. That is as far as I'm willing to go with equities.
4. This leaves 50K, which I only want to maximize yield, yet dont want to get ambushed in a bond fund if rates jump.
5. Currently 20K of that 50K is in that savings account, and the other 30K is in a CD earning 5.12% that will expire this September.
6. What would you do to maximize yield on this money? Long CD? Ladder them? Would TIPS be of any value? Other options?
7. As you can tell I am risk averse, but I know I can do better than 1/10th of a percent in my savings account. I complained about the 5% CD I got 3 years ago, now I would be in heaven if I had it. I have gotten tired of waiting for rates to go up. Any suggestions would be appreciated.
1. I live off my monthly pension and thats it.
2. I have $65,000 and that's it. I will keep $12K in savings account (pays 0.05%, nothing basically) for my emergencies, house expeditures, etc.
3. I am monthly cash flow positive about $700 a month on my pension, so I plan on putting 3K in an index fund to start it, then dollar cost average $300 out of my monthly pension to build that up. That is as far as I'm willing to go with equities.
4. This leaves 50K, which I only want to maximize yield, yet dont want to get ambushed in a bond fund if rates jump.
5. Currently 20K of that 50K is in that savings account, and the other 30K is in a CD earning 5.12% that will expire this September.
6. What would you do to maximize yield on this money? Long CD? Ladder them? Would TIPS be of any value? Other options?
7. As you can tell I am risk averse, but I know I can do better than 1/10th of a percent in my savings account. I complained about the 5% CD I got 3 years ago, now I would be in heaven if I had it. I have gotten tired of waiting for rates to go up. Any suggestions would be appreciated.