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Posted: 12/14/2018 10:32:55 AM EDT
My folks are retired and living on SS + draw downs from what is left of their retirement, sale of grandparents home. They have about $60k or so that they won't need to touch for about 2-5 years, and would like to put it somewhere that will beat inflation over that period without much risk at all.
Is this doable currently? I'm only familiar with long term investments (still 10-12+ from retirement). My mom has an account @ Fidelity with some other, smaller investments. I'm wondering if I should pay to have an independent financial advisor set up a 5-10 year plan for them, because its probable they will outlive their non-SS retirement income and don't have plans beyond that point. 
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Posted: 12/14/2018 10:36:31 AM EDT
[#1]
I'm interested in this same thing but at say only 25-30K...
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Posted: 12/14/2018 11:55:09 AM EDT
[#2]
2-5 years is sort of an investing "no man's land": 2 years and I'd say TIPS; 5 years and I would say you're at least leaning toward equities (a midcap index ETF (or S&P500 index ETF but I'm not a big fan of the S&P500)).
So do both. |
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Posted: 12/14/2018 1:01:09 PM EDT
[#3]
Honestly, I would look at all of it as a whole. Particularly right now since I think we are on the tipping point of all bad in the market. If they take a hit in the market it will expedite how fast they go through the money. Depending on their age, if they need more income than their assets can provide then you could look at annuities. Sometimes you can get a guaranteed minimum withdrawal amount that is better than what you would take if you were doing it independently.
In my opinion, about the only thing you can do is put together a bond porfolio by buying specific bonds. You want to keep the timelines super short duration because if the fed keeps pumping rates, it hurts the principal value if they need to sell before maturity. If you do it for short durations then you wait until it matures. There is no downside risk if you hold to maturity because they mature at par value. Bond funds would be shit if rates go up. Just make sure that you are getting top rated paper. You don't want to look for higher yields and end up with someone who goes bankrupt. Depending on the fees, it might be easier to ladder a cd portfolio or something. It would help with the inflation thing you mentioned, and CD rates have crept up a little. |
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Posted: 12/14/2018 2:19:45 PM EDT
[#4]
Quote HistoryQuoted:
2-5 years is sort of an investing "no man's land": 2 years and I'd say TIPS; 5 years and I would say you're at least leaning toward equities (a midcap index ETF (or S&P500 index ETF but I'm not a big fan of the S&P500)). So do both. |
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Posted: 12/14/2018 5:26:47 PM EDT
[#5]
Quote HistoryQuoted:
The "safest" way is TIPS. Quote HistoryQuoted:
Quoted:
2-5 years is sort of an investing "no man's land": 2 years and I'd say TIPS; 5 years and I would say you're at least leaning toward equities (a midcap index ETF (or S&P500 index ETF but I'm not a big fan of the S&P500)). So do both. My dad turned 76 last weekend, mom is 72. Dad has a raft of health issues, including early stage alzheimers, type II diabetes, macular degeneration, BP, and lost a toe to gout (ignored it turning black after an injury); Mom is relatively healthy, and has siblings that are 81 and 90, parents passed at 97 and 94. So she has good life expectancy, dad not as good (father passed before 60 due to lung cancer, mother in her 80s). Luckily almost all finances, house are in her name (he has some $ left and an annuity) and I have full POA for both. I'm trying to help them manage what they have left as best I can for as long as I can, but I'm no expert and am more worried about doing the wrong thing than doing nothing.
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Posted: 12/14/2018 7:02:20 PM EDT
[#6]
You would ladder the money, so that a portion of the total portfolio matures every year, or every period that you wanted to mature.
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Posted: 12/14/2018 11:19:17 PM EDT
[#7]
Toyota is doing a callable CD through TD Ameritrade @ 4%.
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Posted: 12/15/2018 3:44:37 PM EDT
[#8]
I’d recommend 3 month and 1 year treasury bonds. Buy them directly from the US treasury online. Safest short term investments imo. Buy the 2 year if you don’t think they will need the cash until then.
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Posted: 12/20/2018 1:02:45 PM EDT
[#9]
buy a zero and write laddered calls on it.
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Posted: 12/20/2018 1:08:16 PM EDT
[#10]
Quote HistoryQuoted:
Toyota is doing a callable CD through TD Ameritrade @ 4%. I have inventory that's much better than that. |
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Posted: 12/20/2018 4:00:32 PM EDT
[#11]
Quote HistoryQuoted:
buy a zero and write laddered calls on it. 
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Posted: 12/20/2018 6:51:57 PM EDT
[#12]
Quote HistoryQuoted:
2-5 years is sort of an investing "no man's land": 2 years and I'd say TIPS; 5 years and I would say you're at least leaning toward equities (a midcap index ETF (or S&P500 index ETF but I'm not a big fan of the S&P500)). So do both. |
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Posted: 12/20/2018 7:30:16 PM EDT
[#13]
Citigroup offered a callable CD through Ameritrade up until today, paid 4.5%.
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Posted: 12/20/2018 10:08:31 PM EDT
[#14]
Quote HistoryQuoted:
Citigroup offered a callable CD through Ameritrade up until today, paid 4.5%. |
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Posted: 12/20/2018 11:09:02 PM EDT
[#15]
Quote HistoryQuoted:
Toyota is doing a callable CD through TD Ameritrade @ 4%. |
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Posted: 12/21/2018 12:37:00 AM EDT
[#16]
Quote HistoryQuoted:
whats a callable CD? does that mean no withdrawl penalty? |
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Posted: 12/21/2018 12:45:45 AM EDT
[#17]
Quote HistoryQuoted:
Local Credit Union is offering a savings account paying 4%. And your money is available whenever you want it instead of being tied up for months/years. 
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Posted: 12/21/2018 4:19:50 AM EDT
[#18]
Quote HistoryQuoted:
Way over my head. And anything I buy I have to be able to explain to my 72 year old mom. Quote HistoryQuoted:
Quoted:
buy a zero and write laddered calls on it. |
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Posted: 12/21/2018 4:20:42 AM EDT
[#19]
Quote HistoryQuoted:
Citigroup offered a callable CD through Ameritrade up until today, paid 4.5%. |
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Posted: 12/21/2018 12:49:49 PM EDT
[#20]
Quote HistoryQuoted:
Which credit union, because I have six figures earning 1.25% Quote HistoryQuoted:
Quoted:
Local Credit Union is offering a savings account paying 4%. And your money is available whenever you want it instead of being tied up for months/years. I’d like that name too |
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Posted: 12/21/2018 12:51:45 PM EDT
[#21]
Quote HistoryQuoted:
They make them pre packaged, all the major banks offer them Quote HistoryQuoted:
Quoted:
Quoted:
buy a zero and write laddered calls on it. 
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Posted: 12/21/2018 1:25:40 PM EDT
[#22]
Quote HistoryQuoted:
Which credit union, because I have six figures earning 1.25% Quote HistoryQuoted:
Quoted:
Local Credit Union is offering a savings account paying 4%. And your money is available whenever you want it instead of being tied up for months/years. https://www.libertyfirstcu.com/ So probably not feasible for someone who just wants to park a large amount of cash. |
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Posted: 12/21/2018 1:52:08 PM EDT
[#23]
Quote HistoryQuoted:
I was wrong...it's a checking account. And there are some restrictions - you need to have a direct deposit set up, and the max balance is $40,000.00 https://www.libertyfirstcu.com/ So probably not feasible for someone who just wants to park a large amount of cash. Quote HistoryQuoted:
Quoted:
Quoted:
Local Credit Union is offering a savings account paying 4%. And your money is available whenever you want it instead of being tied up for months/years. https://www.libertyfirstcu.com/ So probably not feasible for someone who just wants to park a large amount of cash. |
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Posted: 12/21/2018 5:53:12 PM EDT
[#24]
Quote HistoryQuoted:
Which credit union, because I have six figures earning 1.25% Quote HistoryQuoted:
Quoted:
Local Credit Union is offering a savings account paying 4%. And your money is available whenever you want it instead of being tied up for months/years. |
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Posted: 12/21/2018 10:04:45 PM EDT
[#25]
Quote HistoryQuoted: 20 year paper? |
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Posted: 12/22/2018 12:01:49 AM EDT
[#26]
Quote HistoryQuoted:
No, matures on 12/24/20. Quote HistoryQuoted:
Quoted: 20 year paper? |
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Posted: 12/22/2018 9:20:18 AM EDT
[#27]
Quote HistoryQuoted:
@shrimpmoney do you by chance have a link? |
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Posted: 12/22/2018 1:43:12 PM EDT
[#28]
Stopped by Kemba Financial Credit Union today, and they're offering 3.00% on new money market accounts, minimum $25k deposit, but you must also maintain Advantage status.
3% yield is only good for one year. |
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Posted: 12/22/2018 9:40:33 PM EDT
[#29]
CIT bank has a 2.2% savings account. Pretty simple to open and seems to be one of the best rates.
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Posted: 12/23/2018 12:37:21 PM EDT
[#30]
t-bills/t-notes on treasury direct.
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Posted: 12/25/2018 4:16:40 AM EDT
[#31]
Quote HistoryQuoted:
No, matures on 12/24/20. Quote HistoryQuoted:
Quoted: 20 year paper? |
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Posted: 12/25/2018 11:06:44 PM EDT
[#32]
Quote HistoryQuoted: 2yr st 4%? |
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Posted: 12/31/2018 5:55:36 PM EDT
[#33]
Quote HistoryQuoted:
Toyota is doing a callable CD through TD Ameritrade @ 4%. 
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Posted: 1/1/2019 2:39:45 PM EDT
[#34]
Quote HistoryQuoted: Did you get in on that? There was one other that came just after that and both were very tempting but I didn't bite. |
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