Quote:
Originally Posted by ZipZap
Good stuff DAB! We will not take SS until later (yes I know it may not be there for us) but will likely need to tap the retirement accounts. Fact is that we could transfer all to savings, go by the 4% rule, and be good.
However, I'm looking for something that does somewhat better than just drawing down on our savings.
So, should we just sink it in "safe" investments, buy a crap load of money products like short/mid/long term CD's, or continue on some other investment strategy?
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generally speaking, individual stocks can be very risky and very rewarding....and all cash in the bank is very safe, but not very rewarding. everything else is somewhere in between those two.
only you, perhaps with the help of an investment advisor, can determine the level of risk you are willing to accept to obtain the results/gains you desire.
without knowing anything, i'd bet the first advisor you asked would suggest something along the lines of 40-60% in diversified stock mutual funds (3-4 funds), with the rest in bond funds and cash (say no more than 10% in cash).
and that's a very common answer you get to the basic question of "how should I invest my money?"
long ago, i mentioned to our advisor that if you needed 50k a year, and you had a time horizon of 40 years, well, if you got to 2M, you'd be done investing. he got a horrified look on his face! my point was, the closer you get to reaching your investing goal, the less risk you have to take.
so go figure out your expenses and work backwards to figure out how much you should have saved/invested.
