UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: TwoCybers Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: Investing $ needed over the next 10 years Date: 1/10/2013 10:08 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 5
With all respect, everybody was return without taking much risk. Reality is higher returns have more risk. Today a 10 year Treasury Bond earns 1.85% -- that is about as close to zero risk as you can get. As has been posted CDs can be laddered, but those are not going to pay 2%.

One thing you need to consider is how mandatory your withdraws over the next 10 year are. It you really need to $20K per year and can't get funds from elsewhere, you are in a no risk or very risk intolerant situation - that will limit your return.

I am not in favor of annuities. These things make money for the insurance company and the sales force. Clearly you are not at the front of the line for returns.

If you can tolerate some risk one option might be putting in the range of $40 in a bank - that will cover two years. Then put the rest is a mutual fund that limits itself to large cap dividend paying stocks. This area will pay over your 2% target. Companies like AT&T, Merck and Procter & Gamble are not going out of business and they will pay dividends. Maybe in 18 months the market will be up 10% and these stocks up 8% -- so take another $40K out and move it too the bank. More risk but more return than CDs.

Gordon
Atlanta
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
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