UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: Rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76390  
Subject: Re: T-Bills and IRA Date: 8/25/1998 11:48 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<<Hi fools. Looking for some advise. As I near retirement, I'm becoming interested in protecting part of a sizable IRA. The wife is insistant that she wants zero risk of loss of principal. She wouldn't listen to T-bill funds. So the question is: Can I somehow purchase T-bills at auction with IRA funds in such a way as to not run afoul of the IRA regulations? Lacking that, does anyone have any suggestions on how I might satisfy the lovely lady? TIA>>

No such thing as "zero risk loss of principal". Not when you consider inflation. Read O'Shaughnessey's latest book "How to Retire Rich", for some excellent information.

Try this link: http://www.superstats.com look for actuarial tables. (Sorry, I don't have the full URL.)
At age 65, the unisex life expectancy (50/50 chance of survival) is another 20 years. Look back 20 years in the past and see how prices have increased. A new car that cost $5000 in 1978 costs you $20,000 now. Project that into the future. And consider that with the huge advances in modern medicine, that there is a very good chance that you both will blow out the candles on your 95'th birthday cake.

People that retired in 1978 with a [very generous] $20,000 annual T-Bill income still get the same $20,000. But today that is nearly poverty level. Dunno about you, but I'd hate to see my wife have to become a waitress at age 85, in order to eat. (Alpo at $25 a can in 2025??!!)

Regards,
Ray
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread

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:
Dividend Growth Investing

Good Time for Dividend Champions?
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