$ 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.

[StratBastard]

As a Godfather, my job is to build the runway and see the child gets off it cleanly.

I first met Saren when she was 2. She is the daughter of one of my best friends Celina. She was the surliest, most taciturn child you ever met. I adored her instantly. My God daughter is now 24 and in the Navy. She is E4 and an electronics specialist on a Destroyer. She will be stationed in Japan after a hopefully brief stint in the Strait of Hormuz. She went to an immersion school, so she speaks, reads, and writes Japanese.

She is home on leave, and tonight I was finally able to get her going on her own private sector investment account. She has her FERS of course in the Navy, but it isn't enough to secure her future. Had her open her own Schwab account tonight, to which I transferred $25K from mine to get her started. As a Schwab client, they allow me to contribute to her account whenever I want too, and I plan to frequently. I explained the goal was to get her to $100K before she is 30. That's when the magic starts happening as per compound interest. She now has a full 40 years to learn to grow that portfolio. We went out to BIG steaks at The Outback to celebrate. She goes back tomorrow.

I'm so very pleased I finally got this going I could bust. Had to tell someone.

If you would, keep a good thought for her. She is sailing into a conflict zone soon.

[Slippy]

As a Godfather, my job is to build the runway and see the child gets off it cleanly.

I first met Saren when she was 2. She is the daughter of one of my best friends Celina. She was the surliest, most taciturn child you ever met. I adored her instantly. My God daughter is now 24 and in the Navy. She is E4 and an electronics specialist on a Destroyer. She will be stationed in Japan after a hopefully brief stint in the Strait of Hormuz. She went to an immersion school, so she speaks, reads, and writes Japanese.

She is home on leave, and tonight I was finally able to get her going on her own private sector investment account. She has her FERS of course in the Navy, but it isn't enough to secure her future. Had her open her own Schwab account tonight, to which I transferred $25K from mine to get her started. As a Schwab client, they allow me to contribute to her account whenever I want too, and I plan to frequently. I explained the goal was to get her to $100K before she is 30. That's when the magic starts happening as per compound interest. She now has a full 40 years to learn to grow that portfolio. We went out to BIG steaks at The Outback to celebrate. She goes back tomorrow.

I'm so very pleased I finally got this going I could bust. Had to tell someone.

If you would, keep a good thought for her. She is sailing into a conflict zone soon.

I've said it before and I'll say it again, StratBastard is one good MAN! (You literally did/do ROCK! HA, Get it?)

[T-Man 1066]

Yes sir, Strat is definitely good shit!

BTW, contact me in a PM and I will get you setup to transfer to my Schwab account.

Prayers for Saren's safe tour of duty.

[Texas PO]

All my best for Saren as she sails into harms way. That's a powder keg she is sailing into. May she be safe.

[Sasquatch]

I'm putting all my money in ammo.

[shootbrownelk]

I'm putting all my money in ammo.

I too believe in your investment in lead. That's what I do.

[T-Man 1066]

A month ago I started to screw around with trading stocks. I threw $500 into a Schwab account, figured I can afford to spend that much to learn the system, and see if I can make any money before I put real money into it. As of this morning I am up 17%.

Trying to figure out a strategy, but kinda buy a few shares of something, set a sell order with a GTC stop limit if it drops much at all, and if it goes up much, then I cancel that sell order and sell it at market before I ride the bump back down.

I need to figure out if I can put in an automated order do both.

I will likely pick some minds here as I go along.

[Chiefster23]

A few weeks back I sold all my individual stocks (in my Schwab account) and put everything into bank CDs. I’ve had these stocks for years and made good money on them but at my age I decided it was time to take my profits and go ultra conservative. Even if interest rates go to zero, there’s more than enough cash there to last my lifetime. And CDs are about as risk free as you can get. I know this strategy isn’t for everyone but for this old bastard, well, I like not having to worry anymore about a crash or correction. I’m laddering the CDs so I have one coming due every month. And interest rates are between 3.8 and 4%. May even hit 5% soon.
I’m enjoying the new peace-of-mind. I don’t even bother reading the stock market doom porn anymore😎

[Texas PO]

A few weeks back I sold all my individual stocks (in my Schwab account) and put everything into bank CDs. I’ve had these stocks for years and made good money on them but at my age I decided it was time to take my profits and go ultra conservative. Even if interest rates go to zero, there’s more than enough cash there to last my lifetime. And CDs are about as risk free as you can get. I know this strategy isn’t for everyone but for this old bastard, well, I like not having to worry anymore about a crash or correction. I’m laddering the CDs so I have one coming due every month. And interest rates are between 3.8 and 4%. May even hit 5% soon.
I’m enjoying the new peace-of-mind. I don’t even bother reading the stock market doom porn anymore😎

That's what I have done. The older you get the more your investments belong at the bottom tier of the investment pyramid. I am too old to bet on the come or go prospecting for gold. I want my money safe and accessible.

[Slippy]

A few weeks back I sold all my individual stocks (in my Schwab account) and put everything into bank CDs. I’ve had these stocks for years and made good money on them but at my age I decided it was time to take my profits and go ultra conservative. Even if interest rates go to zero, there’s more than enough cash there to last my lifetime. And CDs are about as risk free as you can get. I know this strategy isn’t for everyone but for this old bastard, well, I like not having to worry anymore about a crash or correction. I’m laddering the CDs so I have one coming due every month. And interest rates are between 3.8 and 4%. May even hit 5% soon.
I’m enjoying the new peace-of-mind. I don’t even bother reading the stock market doom porn anymore😎

Not going to argue with you on your strategy Chiefster! I can't exactly recall your age, but I'm guessing mid 70's?

My Mom is 87 and I manage her money/investments and I have her at about 60% very conservative mutual funds, 20% cash/CD's and 20% still in higher yield mutual funds. She still has about 95% of what Dad left her when he died 23 years or so ago. She is very conservative with her spending and lives mainly off SS and Dad's Pension.

The only "bad money" decision she made (and I allowed) was a few years ago she wanted a new car! And she wanted to buy it on her own, since she NEVER did.

Dad ALWAYS bought the cars and drove them until the wheels fell off. So Mom, at around 84 or 85 went to a dealer, negotiated a deal and I wire transferred the money for her and she drove off with a brand new car! HA (She rarely even drives it now and I doubt it has 2000 miles on it!)

[~MG~]

You're a good son and very blessed to still have her in your life!