UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Author: vjust Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76397  
Subject: Living Off the Market Date: 8/23/1999 5:27 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I am a 72 year old woman whose income depends largely on my mutual funds. In this volitle market, shall I move some money out? If so, where? I need the income. Thanks.
Print the post Back To Top
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13365 of 76397
Subject: Re: Living Off the Market Date: 8/23/1999 2:16 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
If you need to take money out of the market, the safe place to put it now is either money markets or CD's. That is because bonds and bond funds will decline with interest rate increases. Bonds are OK if you plan to hold them to maturity. But the market value of the bonds may be down for a while.

Knowing when to take money out of the market is always difficult. You will lose some gains if too soon. You will lose some capital (at least temporarily on paper) if too late.

Because no one knows how to make these market timing decisions successfully, the Foolish philosophy is to develop a diversified collection of investments and then basically wait for markets to recover rather than try to predict market turns. The fact that managed mutual funds do worse in down markets than do index funds tells you that even the experts have trouble calling the turns correctly.

Print the post Back To Top
Author: zgriner Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13403 of 76397
Subject: Re: Living Off the Market Date: 8/24/1999 11:22 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I need the income.

You didn't say how much income, relative to your investments, you need. Please check my message #13041 describing a 'total return' portfolio for generating a stable income.

Zev

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Advertisement