[Portfolio help - deferring] Suggestions Following Election

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woodedareas
Posts: 40
Joined: Mon Aug 20, 2012 6:55 pm

[Portfolio help - deferring] Suggestions Following Election

Post by woodedareas » Sat Oct 06, 2012 9:26 am

I am rather heavy in cash and over 70. I have selected a asset allocation of about 70% and 30% but am to conservative to jump into it. II am doing nothing until after the election , but I have decided that I would like to invest in what i would refer to as fixed income with a goal of between 2% an 4%. What suggestions are there for my fixed income side of the portfolio that are considered the most conservative (least risk) that I could purchase and let sit for 12 months? All of the fixed income vehicles thatI previously had have all but disappeared but I am not compelled to take any risk at his time as I am still employed. It is for this reason that i am looking for a very conservative approach as I do not need to take on risk and my first objective is not to loose principal. That objective has guided me for years, but then I could rely on a vibrant economy with reasonable rates. I do like Vanguard and their fee structure but I also am not adverse to a corporate bond with at least a AA rating even though it may lock me into a rate for the next 10 years or more. These bonds also are about gone and are callable in 12 months. I would appreciate any suggestions for my 70% side of my portfolio.
Thanks

xerty24
Posts: 4827
Joined: Tue May 15, 2007 3:43 pm

Re: Suggestions Following Election

Post by xerty24 » Sat Oct 06, 2012 9:48 am

woodedareas wrote:...most conservative (least risk) that I could purchase and let sit for 12 months?
... I do not need to take on risk and my first objective is not to loose principal.
Sounds like you want a 1 year CD. Getting 1% on them would be decent, Ally Bank for example.
No excuses, no regrets.

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BL
Posts: 7951
Joined: Sun Mar 01, 2009 2:28 pm

Re: [Portfolio help - deferring] Suggestions Following Elect

Post by BL » Sat Oct 06, 2012 10:35 am

Another risk-free choice would be up to $10,000 per person in I-Bonds at treasurydirect.gov. Currently it is 2.2 % per year for 6 months and later this month you can find out what it would be for the next 6 months as it is based on a CPI number.

xerty24
Posts: 4827
Joined: Tue May 15, 2007 3:43 pm

Re: [Portfolio help - deferring] Suggestions Following Elect

Post by xerty24 » Mon Oct 08, 2012 10:53 am

BL wrote:Another risk-free choice would be up to $10,000 per person in I-Bonds at treasurydirect.gov. Currently it is 2.2 % per year for 6 months and later this month you can find out what it would be for the next 6 months as it is based on a CPI number.
Remember those you have to hold for 5 years or you lose 1/4 of a year of interest.
No excuses, no regrets.

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