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Started By
Message
Need advice for investing
Posted on 5/7/19 at 1:56 pm
Posted on 5/7/19 at 1:56 pm
Background: Thinking about retiring at 62 (in 5 years). Have about 110K in checking and savings account combined gaining no interest. High yield savings / money market paying 2.5% (about highest I could find). Is that the way to go, or would something else with low/mod. low risk with higher returns available?
6
Posted on 5/7/19 at 2:00 pm to wildcat3
Well.....there is no hard and fast rules for your situation.
Many times it is recommended to be just about out of volatile market exposures when you are within 5 years of retirement. you need that money. You don't want it to disappear. The thought is you build the nestegg until you are using it and then you are no longer in building mode.
Do you have any other retirement accounts?
Many times it is recommended to be just about out of volatile market exposures when you are within 5 years of retirement. you need that money. You don't want it to disappear. The thought is you build the nestegg until you are using it and then you are no longer in building mode.
Do you have any other retirement accounts?
Posted on 5/7/19 at 2:18 pm to notsince98
thanks, that's what I was thinking, playing it safe, but yes, I do have retirement savings, and fund those regularly. This money is just sitting there. I've been using google to research safe investments, and just saw a Schwab Municipal Money Funds Investor Shares that are both taxable and non-taxable, with the non taxable accounts paying 3 - 3.6% (equivalent). The highest funds are in California and New York Municipal Funds. I would think these would be safe, but not 100% sure.
Posted on 5/7/19 at 2:20 pm to wildcat3
You can get 2.75% in a 5 year CD thru Vanguard
Posted on 5/7/19 at 3:43 pm to wildcat3
The only no-risk options might be a 5 year cd at 3% or even EE or I bonds.
If you are considering low-risk, your schwab idea sounds decent. Other options might be peer-to-peer lending.
If you are considering low-risk, your schwab idea sounds decent. Other options might be peer-to-peer lending.
Posted on 5/7/19 at 7:09 pm to wildcat3
What do you plan to do with this $ when you retire in 5 years? What is the asset mix of your retirement accounts? I'd stay invested in equities for anything you don't plan to spend in next 5 years. Between retirement accounts and taxable I'd only keep enough in very low risk assets to get yourself through a few years of down markets after retirement without selling equities when market is low.
Posted on 5/7/19 at 7:43 pm to wildcat3
I'd be concerned about bond funds losing value when interest rates eventually rise. Demand for older low yield bonds held in the fund goes down and fund may have to sell those bonds below face value to cover redemptions. But I'm no bond expert someone correct me if I've got that wrong.
Posted on 5/7/19 at 8:24 pm to wildcat3
quote:
Have about 110K in checking and savings account combined
Need a little more info.
What do your retirement accounts look like? What are your expenses going to be in 5 years? People often forget about increasing medical expenses. Also, what does your estate planning look like? Do you want to leave anything to kids?
Posted on 5/7/19 at 8:32 pm to wildcat3
You did not provide sufficient info to get adequate advice.
If the question is simply, is the current 2.5% good enough for a savings account, then the answer is yes that's not bad.
If the question is, should the money be in a savings account to begin with, then you'll need to provide more info regarding your other accounts.
If the question is simply, is the current 2.5% good enough for a savings account, then the answer is yes that's not bad.
If the question is, should the money be in a savings account to begin with, then you'll need to provide more info regarding your other accounts.
Posted on 5/8/19 at 8:22 am to wildcat3
Look at one of the large utilities
Posted on 5/8/19 at 11:25 am to AUCE05
Choosing a single stock even a utility is risky. You could pick the next PG&E.
Posted on 5/8/19 at 3:19 pm to wildcat3
I'd probably invest it into an ETF like NOBL or something similar. Maybe start by throwing in 50k and the remaining 50k into the High yield savings account... then if you lose say.. 10% on your initial investment you throw in 25k of that 50 that was in the savings account and repeat if needed.
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