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I'm retired and manage my qualified fund. I worked thru a retirement model on Quicken's web site, based on the results I can take out 150k anualy in present dollars ( which is satifactory)for 35 years and still have funds left; the asumption was an 8% return and 3% inflation.

My question is: 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?

Thank you for any responses I may get!

jjft
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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.
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The beaty of a retirement account is that you can go in and out of invstments without tax penalty. You have the flexibility to sell stocks, mutual funds, and treasury bonds with little or no cost but CDs usually have an early withdrawl penatly.

Regards,

Longtermguy
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