Search found 232 matches

by Happy2BeFree
Sun Oct 28, 2018 6:43 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

retiredjg wrote:
Sun Oct 28, 2018 6:07 pm
The Wizard wrote:
Sun Oct 28, 2018 5:56 pm
Threads have a way of taking on a life of their own as people read them and diverge in their own directions...
Yes they do. :happy
It's been an awesome trip!! :mrgreen:
by Happy2BeFree
Sun Oct 28, 2018 6:34 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

Oh, my apologies about the confusion, guys...I was playing loose with my words. The market hasn't actually taken me down to 30% stocks (thankfully). I should have written "began to comply" instead of "complied." (I mentioned this in a response upthread but will now edit my original post.) So I'm no...
by Happy2BeFree
Sun Oct 28, 2018 6:25 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

Oh, my apologies about the confusion, guys...I was playing loose with my words. The market hasn't actually taken me down to 30% stocks (thankfully). I should have written "began to comply" instead of "complied." (I mentioned this in a response upthread but will now edit my original post.) So I'm no...
by Happy2BeFree
Sun Oct 28, 2018 6:18 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

Re-investing dividends kind of takes decision/control out of your hands. I prefer to take the dividends in cash, then treat it like any other cash. During accumulation phase, I invested it into which ever asset class was below my target allocation (which could end up just being re-invested, but it ...
by Happy2BeFree
Sun Oct 28, 2018 3:29 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

I don't even think this thread is about rebalancing or withdrawal. Go back to the original post. This is about a poster who made the decision to re-allocate, not rebalance, and is having trouble pulling the trigger because the market is down. I beg to differ, the original post question was about wi...
by Happy2BeFree
Sat Oct 27, 2018 4:50 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

<snip...> There really isn't much difference between the two methods. I like spending the dividends because it feels like income. Because I DON'T have to feel the pain of "selling" anything or "pulling" from my accounts. I think you are causing yourself a lot more distress than you need to. The who...
by Happy2BeFree
Sat Oct 27, 2018 4:35 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

It's funny, when I read about the 4% "rule" then hear that almost nobody actually follows it in practice, that makes me wonder, does anybody ever precisely follow anything in practice? I know at least one person who follows VPW perfectly. He was influencial in its design. He is the author of the fa...
by Happy2BeFree
Sat Oct 27, 2018 2:43 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

Another way to examine the basic topic of this thread is look at what happens with an investor who has the bulk of his portfolio in a 60/40 Balanced Fund in tax deferred, where such a fund makes most sense. So then, yes indeed, each monthly withdrawal comes 60% from stock index funds no matter what...
by Happy2BeFree
Sat Oct 27, 2018 2:24 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

The best thing I can do is just point you to McClung's book mentioned above. He has a chapter on "harvesting" methods. And if you search around topics on this forum and the web you can find a few topics of interest. McClung likes what he calls "Prime Harvesting" though the ERN website often referen...
by Happy2BeFree
Sat Oct 27, 2018 1:54 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

I think your "anything more is false precision" may have been a bit of a breakthrough. :D People expect investing to be precise but, in real life, it is anything but precise. :happy You know, I appropriated that phrase from Bill Bernstein. I'd read it a while ago, as he was using it in another cont...
by Happy2BeFree
Sat Oct 27, 2018 10:44 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

At times, though, I wonder if this strategy might be good enough: "Take from whatever's reasonably up and try to maintain an approximate AA you can live with throughout your life. Anything more is false precision." But that might be my overanalysis paralysis (and exhaustion) talking. :mrgreen: You ...
by Happy2BeFree
Sat Oct 27, 2018 9:51 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

..... In practice, I'd always have stock dividends in a taxable account redirected into my choice of cash instrument. The question is what to do with the amount of the stock dividend in a year where stocks are down. A number of responses on this thread seem to have said "its easy, just rebalance in...
by Happy2BeFree
Sat Oct 27, 2018 9:39 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

Re: principal decline, I don't even know what my principal is. All I see is my total, and that's why it's hard for me to pull from it when it's down. Your total is your principal. There's no "pulling" from the total when the dividends go straight into your bank account. That's why it's easy. I unde...
by Happy2BeFree
Sat Oct 27, 2018 9:02 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

stuff deleted I've read a number of those threads and see the merits of both ways, as long as I'm clear that taking dividends = selling stocks. Many people take dividends because they're paying taxes on them anyway, so it's that much less they have to sell from the rest of their investments. Do the...
by Happy2BeFree
Sat Oct 27, 2018 8:49 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

If stocks crashed, I would re-invest dividends and pull money from bonds. The idea is to let the stocks recover. Spending the dividends is pulling money from stocks while they are down. Agreed: Taking divs in cash = selling stocks. I disagree... I see dividends as my salary, my income in retirement...
by Happy2BeFree
Sat Oct 27, 2018 8:40 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

Do you see what I'm saying? Do we actually disagree on the facts or on how we look at them? I totally see what you're saying. We just look at it differently. Accumulating, I reinvest everything. In RETIREMENT, I buy a CD so I can spend the interest. I'm all about the interest. It's my new salary. S...
by Happy2BeFree
Fri Oct 26, 2018 8:48 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

If stocks crashed, I would re-invest dividends and pull money from bonds. The idea is to let the stocks recover. Spending the dividends is pulling money from stocks while they are down. Agreed: Taking divs in cash = selling stocks. I disagree... I see dividends as my salary, my income in retirement...
by Happy2BeFree
Fri Oct 26, 2018 8:01 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

I do not look at market downturns as a trigger for withdrawing or not-withdrawing from stocks. A market downturn is an event that may or may not change your metrics that try to achieve a "safe withdrawal rate". You metrics might be your asset allocation, tolerance and need for taking risk, the amou...
by Happy2BeFree
Fri Oct 26, 2018 6:23 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: When do you stop withdrawing from stocks in a downturn?

The thing to withdraw from is the portfolio. To keep it in the planned balance by drawing from it is mathematically the same as keeping it in balance by adding to it, but with a negative sign, not a positive one. I think the conceptual problem is looking at pieces of a portfolio separately. What's ...
by Happy2BeFree
Fri Oct 26, 2018 6:14 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: When do you stop withdrawing from stocks in a downturn?

To be honest, even at peak I hesitated to sell because I wondered if my AA was fine as is and I was just getting scared. I would say if you were getting scared then your AA actually was too aggressive and your decision to cut back was the right decision. If you were comfortable where you are, you w...
by Happy2BeFree
Fri Oct 26, 2018 5:44 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

If stocks crashed, I would re-invest dividends and pull money from bonds. The idea is to let the stocks recover. Spending the dividends is pulling money from stocks while they are down. Agreed: Taking divs in cash = selling stocks. Then one would have to decide when to reinvest...when stocks are do...
by Happy2BeFree
Fri Oct 26, 2018 5:17 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: When do you stop withdrawing from stocks in a downturn?

longinvest wrote:
Fri Oct 26, 2018 1:12 pm

My second link specifically addresses one-way rebalancing. Good luck!
I see that now! I actually bookmarked this thread but hadn't gotten through it yet. Will check these parts out. Thanks again! :D
by Happy2BeFree
Fri Oct 26, 2018 5:14 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: When do you stop withdrawing from stocks in a downturn?

Fair enough, but for those not following a bucket strategy, how would you answer the question?* Your answer, to pull from cash, only works if you have a bucket strategy with cash. Any AA is basically a bucket strategy. You have a bucket of stocks, and a bucket of bonds. I have an additional bucket ...
by Happy2BeFree
Fri Oct 26, 2018 5:03 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

I continued taking dividends,cap gains but do not sell shares. :happy Thanks, Toons! Curious: Do you consider Q distributions a sort-of reverse DCA, where sometimes you're up, sometimes down, and it all evens out? But you wouldn't sell shares unless stocks were up? I ask because taking distribution...
by Happy2BeFree
Fri Oct 26, 2018 1:47 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

Yes, I will keep taking dividends. It's really not that difficult. I consider that income. 2.5% of my 4% just shows up in my account. Pretty easy. That other 1.5% I generate by selling shares from the side that did better that year. Usually, that will be from the stock side. During a stock downturn...
by Happy2BeFree
Fri Oct 26, 2018 1:26 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

Re-investing dividends kind of takes decision/control out of your hands. I prefer to take the dividends in cash, then treat it like any other cash. During accumulation phase, I invested it into which ever asset class was below my target allocation (which could end up just being re-invested, but it ...
by Happy2BeFree
Fri Oct 26, 2018 1:14 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

I continued taking dividends,cap gains but do not sell shares. :happy Thanks, Toons! Curious: Do you consider Q distributions a sort-of reverse DCA, where sometimes you're up, sometimes down, and it all evens out? But you wouldn't sell shares unless stocks were up? I ask because taking distribution...
by Happy2BeFree
Fri Oct 26, 2018 1:05 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: When do you stop withdrawing from stocks in a downturn?

If it can help, here are two posts I've recently written about asset allocation and rebalancing: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=262077&p=4182112#p4179086 https://www.bogleheads.org/forum/viewtopic.php?f=10&t=262077&p=4182112#p4181007 The main conclusion of the analysis is thi...
by Happy2BeFree
Fri Oct 26, 2018 12:55 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

Happy2BeFree- Based on reading your posts in this thread I think you have a different idea about what "taking the dividends" means to most investors. People are talking about taking dividends in cash as they are distributed. The opportunity to "take the dividends" won't occur again in stock funds u...
by Happy2BeFree
Fri Oct 26, 2018 11:01 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

I plan to be 50/50 in stocks/bonds. I'll get 2% dividends from stocks and 3% dividends from bonds. That's 2.5% of my 4% withdrawals. The other 1.5% I'll pull from whichever side has more money. So basically, I would probably stop withdrawing from stocks immediately in a downturn, even a small downt...
by Happy2BeFree
Fri Oct 26, 2018 10:42 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

I think it's important that you're comfortable with what you have to do. It might be that you'd be better off having a significant cash cushion. Some people don't like to do that because you're giving up yield and (when interest rates are more within the historical average, price appreciation), but...
by Happy2BeFree
Fri Oct 26, 2018 10:16 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

Okay, so you'd still be withdrawing from stocks in both a correction and a crash; I know there is no way I could do that. Psychologically it'd be too painful. Though I do like the concept of constant AA, I think I'd be happier not touching stocks when they're doing poorly. Which means that I'll nee...
by Happy2BeFree
Fri Oct 26, 2018 9:57 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: When do you stop withdrawing from stocks in a downturn?

Yes, part of my query is a reallocation issue, and the problem is that before I was able to do so, stocks took a dive so I decided to wait for them to recover before I sold. This is a behavior pitfall called "anchoring". So what you're suggesting is sell now anyway? Yes. See this Wiki article about...
by Happy2BeFree
Thu Oct 25, 2018 9:38 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

My recent high percentage allocation to stocks was in the high 59.x% range, call it 60%. As of yesterday's close, my stocks are 56.5% of my allocation. So if a monthly withdrawal was scheduled for today it would be a slightly lower amount from stocks and slightly more from my stable value and real ...
by Happy2BeFree
Thu Oct 25, 2018 8:27 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

Thank you to everyone who took the time to respond to my somewhat confusing query! I'll think about what you've all said, and see if any more questions come up. :happy Happy, When in doubt, play it out on paper. Let's say your AA is 35/65 and that you have $100,000. As the market turns downward, yo...
by Happy2BeFree
Thu Oct 25, 2018 11:06 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

I should say that prior to this correction, I wanted to reduce my equity exposure by 7% (down to 30% equities) as a permanent change to my AA. Well, the market heard that and complied! The math does not add up there. Say, if you have $37 in stocks, and $63 in bonds, stocks would have to go to $27 (...
by Happy2BeFree
Thu Oct 25, 2018 10:49 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: When do you stop withdrawing from stocks in a downturn?

In withdrawal, you should take your money from the asset class you have too much of. In a market downturn, this will be the bond side of your portfolio, not the stock side. So there is no decision about when to stop. Your portfolio will tell you where to withdraw from. Thanks, retiredjg, I think I ...
by Happy2BeFree
Thu Oct 25, 2018 10:24 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

I withdraw a certain amount each month pro rata from my tax deferred portfolio. So when stocks go down a few percent, I automatically withdraw a bit less from the stock side. Rebalancing I need to do manually, when and if I get close to a rebalancing threshold... So to be clear, you still withdraw ...
by Happy2BeFree
Wed Oct 24, 2018 9:47 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

Thank you to everyone who took the time to respond to my somewhat confusing query! I'll think about what you've all said, and see if any more questions come up. :happy
by Happy2BeFree
Wed Oct 24, 2018 7:32 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: When do you stop withdrawing from stocks in a downturn?

In withdrawal, you should take your money from the asset class you have too much of. In a market downturn, this will be the bond side of your portfolio, not the stock side. So there is no decision about when to stop. Your portfolio will tell you where to withdraw from. Bonds are down more than stoc...
by Happy2BeFree
Wed Oct 24, 2018 7:28 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: When do you stop withdrawing from stocks in a downturn?

In withdrawal, you should take your money from the asset class you have too much of. In a market downturn, this will be the bond side of your portfolio, not the stock side. So there is no decision about when to stop. Your portfolio will tell you where to withdraw from. Thanks, retiredjg, I think I ...
by Happy2BeFree
Wed Oct 24, 2018 7:03 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: When do you stop withdrawing from stocks in a downturn?

In withdrawal, you should take your money from the asset class you have too much of. In a market downturn, this will be the bond side of your portfolio, not the stock side. So there is no decision about when to stop. Your portfolio will tell you where to withdraw from. Thanks, retiredjg, I think I ...
by Happy2BeFree
Wed Oct 24, 2018 6:54 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

Re: When do you stop withdrawing from stocks in a downturn?

Why would you be taking money out of stocks? Why wouldn't you be taking money out of bonds to rebalance back to your AA? Hmm. Prior to a few weeks ago, stocks were way up, so I was taking dividends from stock funds. Plus, I was hoping to shave about 7% from my stock funds so I could achieve a perma...
by Happy2BeFree
Wed Oct 24, 2018 6:46 pm
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 9442

In retirement, when do you stop withdrawing from stocks in a downturn?

Hi, all. When withdrawing from your portfolio, at what point do you stop taking from your stock funds when they're losing ground? I'm taking dividends from taxable funds, and this year's been fine so far, but now with a near-correction and possibly more, I'm wondering how to gauge when it makes sens...
by Happy2BeFree
Mon Oct 22, 2018 11:52 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 484
Views: 73811

Re: 2-year CDs at Vanguard and Fidelity Today

Kevin is a great help to us all when negotiating this stuff. If it is any consolation, unless you are investing large amounts of money, the amount of additional profit you will gain from the secondary market is rather trivial. And if you are investing large amounts, learning about the secondary mar...
by Happy2BeFree
Mon Oct 22, 2018 3:36 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 484
Views: 73811

Re: 2-year CDs at Vanguard and Fidelity Today

Your calculation is correct. Be sure you are using marginal tax rates, and not tax brackets. My federal tax bracket will be 12%, but my federal marginal tax rate will be 27%, due to marginal ordinary income pushing an equal amount of qualified dividends from 0% to 15% tax rate. There many other fac...
by Happy2BeFree
Sun Oct 21, 2018 8:20 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 484
Views: 73811

Re: 2-year CDs at Vanguard and Fidelity Today

Kevin, first, thanks so much for sharing your in-depth knowledge on this forum and your blog. I've learned a ton from you and appreciate your time and efforts on our behalf. Just wonder, does TEY apply if there's no state or local income tax, but there's a state dividends and interest tax? Say that...
by Happy2BeFree
Sun Oct 21, 2018 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Time To Reinvest or Time to Hold Cash
Replies: 5
Views: 932

Re: Time To Reinvest or Time to Hold Cash

I’d put the cash in vanguard prime money market fund for now. At least it will earn 2.2% while you are determining a course of action. +1 That's what I'm doing. Plus, taking advantage of Ally's 1% bonus cash back, which, if you have an Ally account and cash at another institution, you could get int...
by Happy2BeFree
Sun Oct 21, 2018 1:29 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 484
Views: 73811

Re: 2-year CDs at Vanguard and Fidelity Today

<snip> Consider holding some of each, but perhaps use a 1-year Treasury instead of a 1-year CD. The 1-year Treasury yield is a little higher than 2.60%, so with same as or higher than yield of 1-year CD, but more liquid (much lower bid/ask spread). This is for IRAs or no/low state income tax. In ta...
by Happy2BeFree
Sat Oct 20, 2018 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: What if your risk tolerance is lower than what's best for your portfolio?
Replies: 51
Views: 3967

Re: What if your risk tolerance is lower than what's best for your portfolio?

OP when we retired, we built a three year CD ladder (above three years didn’t make sense with the rates) and had a 45/55 allocation for the rest. {... but, unlike you, we have a pension and are much closer to SS}. you might feel the need for up to five years, but we still haven’t seen CD rates that...