$ predictions and investment opinions

[Texas PO]

I’m 75 and the wife is 78. Zero debt. I have no heirs at all to leave anything after death. The wife has one daughter who just retired in much better shape than me. So leaving an inheritance behind is not a factor in my reasoning. My big concern is that the world is a burning pile of shit right now, debt is out of control, and the markets are way overblown and unsustainable. My IRA goals are to generate Safe and sustainable income (if that is even possible!) and to preserve the principal. Currently I have a decent cushion of PMs that will remain untouched. The rest of my IRA is invested in blue chip stocks that pay dividends (around 1 to 2%). Sofar I have only taken dividends and interest, never touching the principal. But even blue chip stocks are at risk in a serious market downturn and I could lose a big chunk of the principal and we are too old to wait years for a market recovery.. I’m thinking that the safest investment (safety is all relative) is CDs (FDIC insurance). And now interest rates are pretty good (3.5% to 4%) and most probably headed down if Trump gets his way. Thinking of converting everything to a CD ladder averaging about 3.85%. This actually increases my current monthly withdrawals and keeps things predictable. The principal is guaranteed by the FDIC as long as the government doesn’t collapse. The downside is there is no possibility of increasing the value of the principal. But at this late stage of our lives, whocares?
Anyone see any obvious holes in my plan?

I don't see any holes at all. I think most people would happy to be in your position. 50 to 60 percent of people won't be able to afford retirement and I am betting those numbers will climb. This economy is unsustainable and war is coming. One way or the other some bad shit coming our way and I think it will get worse before it gets better, if it gets better at all.

MG and I are much like you. We have no heirs to be concerned about, everything is paid for, and can easily cover our small nut. I still have money in the 401K although if the market cratered tomorrow i would be pissed but it's not enough to make me jump off a one story building in total despair. The IRA and our Social Security is more then enough to keep us living fairly well. We don't want for anything and don't really need much. Our fortune making days are over.

In today's wold I would recommend eliminating any debt you you have, keep cash on hand and be very conservative if your in the Market. 401k's are great for the long haul but if your close to retirement I would lean heavier on safer venues. (When I retired I got most of my money out of the market) I don't have any confidence in the stock market and as far as the general economy is concerned I don't believe it's sustainable. Right now, with all that's going on outside the Ten Oaks gate, I would keep my cards very close to the vest.

[Chiefster23]

I appreciate all these replies. Much thanks. I still haven’t made any decision yet. Truth is, I’m a little scared to decide. I’ve made some big mistakes concerning my retirement funds in the past. But not making any decision could be a mistake too. No guarantees in this life!

[SparkyPrep]

I appreciate all these replies. Much thanks. I still haven’t made any decision yet. Truth is, I’m a little scared to decide. I’ve made some big mistakes concerning my retirement funds in the past. But not making any decision could be a mistake too. No guarantees in this life!

No, there are no guarantees. BUT, patience, and no rash decisions usually pay off in the long run.

[StratBastard]

[StratBastard]

Just threw a full ounce of gold into the safe today. For me, that is a VERY good month. Wish I could average that, but I'd have to start robbing gas stations and 7-11's.