UnThreaded | Threaded | Whole Thread (44) | Ignore Thread Prev | Next
Author: LaraAmber Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: Is my wife smarter than me? Date: 8/25/2006 4:23 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
I was thinking of putting 200K of the lump sum in fixed assets (bonds and money market) for 4 years...withdrawing 50K/yr and managing the 500K in small cap value stocks.I figured 4 years is enough time to ride out stock market bumps. I did the calculation and I think I came up with a 14% return averaged over 4 yrs would beat a 5K/mo pension check. I read Kiplinger's and all the time and they feature investors who have over the period of 4 years averaged returns of greater than 60%...

I'm sure I could start a newsletter tomorrow and do the same thing. I could show you a guy who got 60% last year, and then a month later should you a guy who got 50% last year. What I don't do is come back a year later and show you that the guy who got 60% took a 90% nose dive in year 2.

Small caps are not the magic bullet. In fact the latest Smart Money magazine had an article discussing how in recessions small caps are not what you want to invest in, you want to invest in S&P 500 companies that produce necessities (medicine, food, power) and are on firm footing. Quite a few people are predicting a recession around the corner. If a recession hits hard, you're going to be real glad for that monthly check.

Lara Amber
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (44) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement