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- Manlobbi
Halls of Shrewd'm / US Policy❤
No. of Recommendations: 1
I'm retiring from my government job next week. I'm probably going to take another job since I will be in the area for a while (at least until the end of the year) and my skills are still useful. Anyhow to use some example numbers, assume I have $500K put aside to cover my expenses for my next 10 years. This money along with the pension would be all we need. What would you do with the money?
1. Invest all in Treasuries/CDs?
2. Invest all in TIPS?
3. Invest mixture of TIPS/Treasuries CDs?
4. Invest in some mixture of stock and bond ETFs such as maybe 30% stocks/70% bonds?
5. Add stocks to option 3?
I'm leaning towards treasuries for the next 4 years and money in TIPS that would come due in 5 years and reinvest the money at that time.
I'm probably being fairly conservative here. At some point between FRA and 70 we will start collecting social security and likely that money with my pension would cover all of our current expenses. I also have a core account that will be mostly stocks (ETFs) and only used if I've underestimated our expenses (always possible) or used by my wife if I were to pass away early since my pension drops about 40% and obviously she would then only get the one social security check (mine).
I'm guessing some would say just throw all the money in a 60/40 stock/bond boglehead type ETFs and withdraw 3-5% as needed for the first 10 years and after that it may drop to zero.
Since you never know what the market might do, I think I prefer the fixed income approach.
No. of Recommendations: 4
I think I prefer the fixed income approach.
I've been retired for some years since I walked away from a job over company management "ethics." For me, for my fixed income portion (I'm currently in cash-equivalents for my common stock portion), I use preferred stocks.
Fixed income positions will always lose ground to inflation during high inflation excursions of some duration, like the current one, but my bet is that over the long run, the stability of the income is a net good--my preferreds beat inflation during "normal" periods.
I just hold out for preferreds trading in a range between a little below and a little above par at the time I'm willing to buy, having a coupon of at least 6%, aren't callable for at least 2 years and have a Moody's rating of at least Baa3. Then I hold them until they're called. There aren't many of those these days, but there are some, and there'll be more as interest rates keep rising.
Eric Hines
No. of Recommendations: 1
Thanks. About the only preferred I hold is WFC-L. I think we are getting close to the end of rising rates. I'll have to do some searching on them. I think at one time I used quantum.
Thanks
Rich
No. of Recommendations: 0
QuantumOnline (
https://www.quantumonline.com/ ) has a very good database, but it's cumbersome to search.
Best I can do is Copy/Paste into Excel as a text file and then do the adjusting and sorting from there. The...adjustments...are the cumbersome part, since I don't have the programming chops to set up a script.
Eric Hines
No. of Recommendations: 0
QuantumOnline (https://www.quantumonline.com/ ) has a very good database, but it's cumbersome to search.
Best I can do is Copy/Paste into Excel as a text file and then do the adjusting and sorting from there. The...adjustments...are the cumbersome part, since I don't have the programming chops to set up a script.There was an opensource program called "preferred search" which I used to use, it pulled in the data from quantumonline and yahoo (for prices).
It was great, made looking through preferreds very easy.
I was/is written, IIRC, in python. It stopped working when yahoo went to their cookie/crumb thing. There were sites that told how to do that yahoo thing in python, evidently pretty easy once you knew the trick. I emailed the author and asked him to fix it, but he said he was bored with it and declined. Somebody who knows python or who cares to muddle through could fix it.
No. of Recommendations: 0
There was an opensource program called "preferred search" which I used to use....Yeah, I used to use that program, too, and it is, I think, still available in SourceForge (
https://sourceforge.net/ ). The author has said he got tired of Yahoo's constantly altering how to download its stock data. The code itself, being opensource, may well be available on SourceForge for anyone to work with.
It would be good enough for me, at least in the near- and mid-term, if the parts of the code that queried Yahoo's [pricing] data were simply bypassed/eliminated. I can look up my own pricing data once I've culled the preferred stock universe enough to suit me.
Eric Hines
No. of Recommendations: 2
No. of Recommendations: 0
I'll have to check it out. Python is pretty easy as far as programming language go and I've done some work in it. With retirement in sight I might have some free time.
Thanks.
No. of Recommendations: 1
Whether it's for a lifetime, 1 month, or 10 years - I personally feel that if I've "won the game" - why risk.
Winning the game would be defined by people differently whether it's me, the local brain surgeon, the janitor from the school, or Bill Gates.
If my 10-years-from-today stash is enough to meet my expenses - I'd take no risk or at best moderate risk with funds I don't need for 6-7 years. If the home-state is MD I'd be possibly saving 5%+ in state income tax on Treasuries.
My first 6 years money would be laddered into Money Markets, 2 years and under treasuries, Cds. This way, regardless of a black swan (and my goodness there's 50 of those brewing)....I know how much I have, and I know I can live as I please.
The year 7-10 money? The riskiest I'd get is some PFF. Perhaps some XLU with hopes of a 3% div + 5-7% earnings growth perhaps beating my Treasury and CD rates.
The kinkiest I'd get - higher yielding corporates - personally I have some General Motors and Nordstrom corporates, yielding from 6.4% - 7.1%. I'm betting on one, despite not being 'cool'- is wildly profitable. And the latter - where a family holds 30% of their company and if other retails like Macy can be turned around, perhaps Nordstrom will make it too.
I respect Bogle and 60/40-ism. But again, why would I risk 60% of my money - when I really don't need it.
Congratulations on your success.
