Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: alfonsop Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 294  
Subject: Re: lock in long term Date: 1/13/2000 1:02 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
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.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

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