Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: wild4mn Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19380  
Subject: Re: Where to put the $150K? Date: 8/2/2000 2:57 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
It seems a "ladder" of 1 to 5 year fixed income bonds, possibly Treasury bills, as the method.

Your situation seems to be a possible variation on this retirement-spending method I read recently. It proposed one should keep 5 years of assets (the amount to be spent) in a cash account; the likely form suggested is a ladder of fixed investments, possibly Treasury bills (20% would mature in 1 yr, 20% in 2 years, etc.) Each year you assess your other investments' performance. If it is a down year for your "long-term investments", you use the "one-year investment assets" as your 'income' (and replace it 12 months hence, or sooner if the market is up sufficiently). If it is not a "down" year, you liquidate a year's equity to use as 'income'.

This has the positive effect of allowing you to avoid selling the long-term investments when the markets are down. Perahps someone has named this method.
Bob
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

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Berkshire Hathaway

IBM: Is Buffett Wrong, or Brilliant?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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