| Muni Bonds- Is this the best move with $200K right now? |
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foodeefish
Contributing Member
Cash: $ 6.00
Posts: 26
Joined: 07 Feb 2004
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| Muni Bonds- Is this the best move with $200K right now? |
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Thanks to many people on this forum, I have my House Paid for, No Debt, $350K in 401K plans, $380K in stock Market, and wondering what to do with $200K in Savings and CDs maturing.
Ages - I am 53 and wife is 60 years of age- no Kids.
Both still working and grossing $170K each year- Can't do a Roth IRA and Taxes are around the 30% mark each year.
With this $200K, should I invest in a few Municipal Bonds to reduce the taxman's cut, Build CD ladders??????????????
The less than 1% in checking and savings is ridiculous and I want to get the biggest bang for my liquid assets.
With any extra income being earned right now (which is significant) what should I be doing with the money besides giving 30+% to he TaxMan?
Thnx
Foodeefish
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Fri Dec 12, 2014 6:32 pm |
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littleroc02us
Moderator
Cash: $ 384.35
Posts: 1891
Joined: 09 Feb 2009
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I think it depends on your strategy for retirement. IMO, I don't plan on ever retiring because the actively managed real estate portfolio that I'm growing will most likely produce large cash flows for retirement when they are paid off, along with our 401k's, pension and Roth IRA's. Since I don't plan on retiring fully, I plan on aggressively investing 50% of our investments and the other 50% into a more secure Bond or CD laddering type investment. My biggest concern for people who get to conservative when they retire in their 60's for example is that they may live another 30 years and if they allow inflation to eat into their principles then they may outlive their money. Especially with health care prices and the direction they are heading. I'd rather continue to make 11% on that 50%.
Risk comes from not knowing what you're doing. (Warren Buffet)
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Fri Dec 12, 2014 10:00 pm |
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Wino
Senior Member
Cash: $ 113.80
Posts: 560
Joined: 03 Aug 2012
Location: Dubai
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I put my extra cash into mutual funds, mostly. I don't get any tax advantage, but I get good gains. I also have a few individual stocks I'm currently about to buy, as I've never done individual stocks before. I've "played" some online games with stocks, and I've always done well, so I see no reason not to try my hand at this game as well, with real money.
I plan to diversify into real estate once I get enough saved to purchase a rental house outright. I plan to seriously consider oldguy's method of leveraging the rental house and investing the cash in mutual funds or similar, but I have not yet made that decision. I will NOT be using oldguy's method with my primary residence. That will remain paid for and appreciating (I hope). I don't need to use all of my assets to leverage to build wealth.
Disclaimer: DW will only let me have $5K to play with in stocks, and I'm fully aware of the fact that I could lose most or all of it. I don't think I will, but then again, everyone thinks they'll "win" when they invest in the stock market.
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Mon Dec 15, 2014 12:20 pm |
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