I have read volumes of web based retirement planning articles during the past ten years. There is no one size that fits all. As a market investor self managing my IRA, the best stategy I have adhered to has been to know my risk aversion, invest cautiously, diversify and periodically reset my asset allocation. My dividend reinvestment plan is also a positive tool. It is an automatic monthly investment program.
When the market crashed in 2008 I was bruised and battered but still in the game because of sage advice I followed.
Recently, I purchased and laddered some investment grade corporate bonds and locked in good yields through 2014. I am 69 now. The broker who assisted me looked at the cash position inside my IRA and strongly suggested I invest some of it in individual TIPS and ladder them out over a few years. Instead, I invested in the Vanguard TIPS Fund. Less complicated and a low fund expense ratio. In spite of the risk and lower expected market returns, I will continue to diversify and invest in index equity funds as well. I can't imagine investing 100% of my retirement plan in TIPS. Safety is important to retirees but growth and yield is important.
Phillip Suhadolnik
of WA
@
Jul 02, 2009 19:06:12 PM
Retirement
I am not an expert by any means but I think it is important to make sure you have money in a variety of venues(some call this diversify). For example, you should be saving in a healthy interest bearing account, have a portion of your money in a pension plan(contribute to the full employer match), real estate(buy a home), stocks in a discount brokerage firm and then insurance policies(if you have children under 18). I would also recommend starting a collection of some sort that might be worth something years down the road(coins, stamps, rare items). Lastly, don't spend to impress neighbors or family. If you need to impress them, then they really aren't worth the effort and you should examine the source of your insecurity. There are other less costly ways to get your self-esteem! Peace . . . .
Phillip Suhadolnik of WA @ Jul 02, 2009 19:06:12 PM
judy mejias of VA @ May 20, 2009 19:23:33 PM
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