Halls of Shrewd'm / US Policy❤
No. of Recommendations: 2
...ask how do we invest in this strange period of time again. I had to sell a chunk of stock because it reached a high and now, looking over what I have, I find myself no knowing what to do. At 74, I want a bit of income, but something that will resist the coming inflationary recession.. I've made some maneuvers, but those are just protective - I don't wanna lose what I got. Unexpectedly, a stock I had reached a high so I sold a third of it. It's too concentrated anyway but now I have no idea what to do. I may try dividends as Mungo talked about, but I'm having trouble finding a way to figure out what's a good ROE on a 175 stocks to narrow it down to 50 or 30. So while it's OT, I usually ask around for ideas.
No. of Recommendations: 2
What's your general tolerance for risk? That will affect where you park cash...
No. of Recommendations: 3
At 74, I want a bit of income, but something that will resist the coming inflationary recession.. I've made some maneuvers, but those are just protective - I don't wanna lose what I got. Unexpectedly, a stock I had reached a high so I sold a third of it.
One suggestion I've heard while waiting to see what happens with the economy in the short to medium term is to buy short duration TIPs. These will provide inflation protection on top of a small return. I have build treasury ladders before when the market is over heated which allows me the option to roll them when they mature or switch back into equities if the market has corrected. I like the flexibility given the uncertainty, but you do risk missing out on a continued bull market.
No. of Recommendations: 1
is to buy short duration TIPs.
Thanks. I now need to figure out how to decipher the Schwab display after reading about it. I like the idea.
No. of Recommendations: 1
What's your general tolerance for risk?
I sold part of what I consider a high risk venture for my age, and want some income with relative safety. How are you protecting yourself from the future environment? You didn't like tariffs.
No. of Recommendations: 4
How are you protecting yourself from the future environment?
We have a Variable Universal Life insurance policy out on me. The way it works is you borrow against the death benefit once it matures - since it’s technically a loan you’re making to yourself, it’s not “income”. So you never pay taxes on any of it.
We also have another insurance annuity that’s contracted to pay out for life at a certain rate.
Both together add up to a base level of cash flow for life that’s protected from taxes/inflation.
