| Post Retirement Investments |
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jereece
New Member
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Joined: 28 Dec 2012
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| Post Retirement Investments |
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I am about 8 years from retirement but my older brother plans to retire soon. I am looking for post retirement investment ideas and why. For example, I know there are annuities, CDs, high dividend stocks, etc. Currently CDs don't pay much. I have never been a big fan of annuities. With stocks there's always a risk. So what are your thoughts and recommendations for investing post retirement?
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Wed Jan 09, 2013 5:10 pm |
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oldguy
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quote:
So what are your thoughts and recommendations for investing post retirement?
I avoid the annuities, CDs, and other "guaranteed" products. I use bond funds for my safe investing And I avoid individual stocks and ETFs for my equity investing and use index funds. (Individaul stocks carry the market risk, PLUS sector risk, PLUS the risk of company failure - the second two are mostly incompensated risk).
And then I use the top-down number to adjust risk - eg, if I want to increase risk I might move from 60/40 to 40/60 - and so on.
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Wed Jan 09, 2013 5:33 pm |
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jereece
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Thanks oldguy. As a followup question, you said "And I avoid individual stocks and ETFs for my equity investing and use index funds." Why do you prefer index mutual funds over index ETFs? I like Vanguard and used to invest in their range of mutual funds but lately have been investing in their index ETF (e.g. VB, VO, VV, etc.).
Thanks...
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Wed Jan 09, 2013 6:36 pm |
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oldguy
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quote:
Why do you prefer index mutual funds over index ETFs? I like Vanguard and used to invest in their range of mutual funds but lately have been investing in their index ETF (e.g. VB, VO, VV, etc.).
I don't prefer Index Funds over ETFs - I sometimes use SPY. I was making the distinction between the broad market (index), a market sector (sector ETFs), and an individual stocks. When you narrow the scope from market to sector to stock, you add risk that is uncompensated. Ie, all 3 categories get about an 11%/yr longterm average return, but the narrowed ones carry the risk of that company or that sector crashing.
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Wed Jan 09, 2013 9:08 pm |
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jonathan321
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This is the key to a happy and wealthy retired life. *Have a concrete plan:* You must have a plan as how much you need post retirement keeping inflatio
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Mon Jan 21, 2013 12:53 pm |
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Destiny
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Location: Utah
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I believe retirement can pretended to be most ugly word if we have not planned it properly. There are many option being available in the market where investment can secure our post retirement. Traditional IRA, Roth IRA, 401k and Annuties are some of the option. Each of them has there own advantage. Depending upon your needs, you can choose any of them to secure your future.
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Tue Feb 12, 2013 5:28 am |
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oldguy
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quote:
it has a fixed rate of interest, which means you're guaranteed at least that much growth over the life of the bond.
No - it means that you are guaranteed to lose purchasing power for the remainder of your life. Many people live into their 90s, ie, they have 35 year retirements to fund. They need to protect themselves against inflation. (2%/year inflation cuts your funds in half in 35 yrs.)
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Tue Feb 12, 2013 3:22 pm |
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Anton Martin
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| Hire Certified Financial Advisor |
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I would like to suggest you to hire Certified Financial Advisor who can help you to make retirement planning for you and he/she will give you lot of other options too. That will make you to manage your retirement perfectly and accordingly.
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Mon Feb 18, 2013 12:19 pm |
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No-Brainer
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Joined: 29 Dec 2005
Location: Oregon USA
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My experience was to take advantage of the increased time available and invest in your mind, then you have an asset that never loses value and can be applied toward a more comfortable life no matter how long you live (or what happens to the markets).
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Tue Feb 19, 2013 3:06 am |
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