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Retirement Discussions / Retirement
|Subject: Re: lock in long term||Date: 1/13/2000 1:02 PM|
|Author: alfonsop||Number: 7 of 297|
if I can capture an 8% return on a long term insturement like a CD or Treasury Bond why would I want to be in the market?
To get 8% on a CD usually requires a pretty long term maturity. You would have to buy them so that the maturities would stagger every year for the 35 years you were planning on drawing. Personally, I think that's too much of a pain.
Treasury Bonds I am not familiar with, so I won't comment there.
If it were me, and I didn't want to take a ton of risk, I would keep it in some sort of index device (either a fund (like Vanguard) or trust (like SPY)).
If I wanted even less risk than that, I would find a way to live with a smaller draw. One that would allow you to put it all in a Money Market Fund, and live with barely beating inflation. That way, it is very liquid.
Just my $.02.
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