cd's bonds other

retireed 80 yrs old lokking for suggestions of safe investments and duration?
Thanks in a advance.

retireed 80 yrs old lokking for suggestions of safe investments and duration?

Look into Ibonds. Can only buy $10K/SS/year but a good inflation hedge. Must hold for at least one year and if you cash in before 5 years you lose 3 months interest. Principal is not at risk and interest rate goes up and admittedly down with inflation. Currently earning 9.62%. Earnings paid out when redeemed.

https://www.treasurydirect.gov/indiv/products/prod_ibonds_gl…

IP

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Look into Ibonds. Can only buy $10K/SS/year but a good inflation hedge.

IP - This question has come up once in a while previously, but I don’t think it has been answered yet: since you’re familiar with I-Bonds, maybe you know additional info about treasuries/bonds available at Treasury Direct? Have you ever purchased instruments other than I-Bonds at TD?

Thanks,
Pete

retireed 80 yrs old lokking for suggestions of safe investments and duration?

What type of account (taxable, IRA, Roth IRA, etc.) are the investments in?

What is your purpose for the money? For instance, do you need it to produce income? Or are you planning on leaving it to heirs? Something else?

The appropriate suggestions depend a lot on what your answers to the questions are. For instance, if all of the funds are in an IRA or Roth IRA, then the prior suggestion to look into I-bonds is irrelevant, since you can’t own I-bonds in an IRA.

AJ

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Have you ever purchased instruments other than I-Bonds at TD?

No, but I am not typically a holder of bonds or bond funds, other than Ibonds.

Treasury Direct was super easy to use, and I can’t see why they wouldn’t sell all the gov’t bonds that way.

IP

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"IP - This question has come up once in a while previously, but I don’t think it has been answered yet: since you’re familiar with I-Bonds, maybe you know additional info about treasuries/bonds available at Treasury Direct? Have you ever purchased instruments other than I-Bonds at TD?

Thanks,
Pete"


not IP, but I have purchased short term T-notes a couple of times. Very easy to do. The money for the purchase came electronically directly from CU, and when duration date was reached, the money was
deposited directly into my chosen account,which is how I chose to handle it. Can set it up so money can just be left in Treasury Direct account if you’re going to buy again.

in cash account
interested in cds bonds not ibonds because of limit
suggested instrument and duration?

in cash account
interested in cds bonds not ibonds because of limit
suggested instrument and duration?

You still haven’t answered what function you want the cash to fill. Are you just looking for income from the cash? Do/will you need the principal for living expenses? Do you want to leave the principal and earnings to your heirs? Something else?

If you want income and expect rates to keep increasing, you could look at floating rate instruments, or short term CDs until you reach what you expect the high point to be, when you could lock in longer term CDs or bonds.

If you want income and expect rates to stop increasing and/or drop, you could lock in longer term CDs or bonds that have recently been issued at higher rates.

If you are going to need the principal for living expenses, you might want to look at laddering CDs to come due in the year that you need them, or using target date bond ETFs like these https://www.ishares.com/us/products/etf-investments#/?produc…

If you want to leave the principal and earnings to heirs, I would recommend stock investments, rather than bonds/CDs

AJ

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You still haven’t answered what function you want the cash to fill. Are you just looking for income from the cash? Do/will you need the principal for living expenses? Do you want to leave the principal and earnings to your heirs? Something else?

want income
do not need for living expense
do not want to leave for heirs

when my wife or I am gone, the one still living will buy an imeediate annuity for life with “zero” being left when the second one goes

when my wife or I am gone, the one still living will buy an imeediate annuity for life with “zero” being left when the second one goes

If that’s the plan, then I would suggest looking into a 100% joint and survivor annuity now.

AJ

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With that information, I suggest

https://tinyurl.com/5bde2924

This will pay more than corporate bonds and way more than government bonds. The common name “Junk Bonds” may bother you. If you investigate this fund vs. others in the category, you will see the rate of bond default is much lower (because the individual bonds have less risk).

On a personal note – I am also 80 and held this fund exclusively for my bond holdings since the mid 90s. Given your goals and age this is a good fit. Have all the distributions in cash - not reinvested.

If you want higher returns, go with
https://tinyurl.com/mr29rcx5

Again spend rather than reinvest distributions. This fund has out performed the often mentioned 60% S&P plus 40% all bond index fund over the last 50 plus years.

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If that’s the plan, then I would suggest looking into a 100% joint and survivor annuity now.

The plan is fine – execution another matter. Once a person is over 80 there are few people willing to sell annuities. When I was investing for my MIL, Vanguard said they will not even quote for people age 85 and older.

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when my wife or I am gone, the one still living will buy an imeediate annuity for life with “zero” being left when the second one goes

If that’s the plan, then I would suggest looking into a 100% joint and survivor annuity now.

AJ

You get so much less for joint.

https://tinyurl.com/5bde2924

This will pay more than corporate bonds and way more than government bonds. The common name “Junk Bonds” may bother you. If you investigate this fund vs. others in the category, you will see the rate of bond default is much lower (because the individual bonds have less risk).

On a personal note – I am also 80 and held this fund exclusively for my bond holdings since the mid 90s. Given your goals and age this is a good fit. Have all the distributions in cash - not reinvested.

If you want higher returns, go with
https://tinyurl.com/mr29rcx5

Again spend rather than reinvest distributions. This fund has out performed the often mentioned 60% S&P plus 40% all bond index fund over the last 50 plus years.--------
------------------------------------------------------------------------------------------------------even the first one VWEAX had a 28% drawdown in 2008 —ouch not many would 80 yr olds would feel that is safe

wan123m wrote even the first one VWEAX had a 28% drawdown in 2008 —ouch not many would 80 yr olds would feel that is safe

OP said he was after income. Last time I checked bond income was not affected much in 2008/2009. Our last pay check was dated May 1, 2008.

OP said he was after income.

I will point out that the OP is also the one who was replying to your comment. My guess is that his concern is that there would be less left to purchase the annuity if there was a significant drawdown, even if the income doesn’t get reduced, so it would mess up his plan.

That said, it seems like he doesn’t like any of the options suggested. So @wan123 - what do you plan to do, since none of the suggestions made seem to be acceptable to you?

AJ

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OP said he was after income.

I will point out that the OP is also the one who was replying to your comment. My guess is that his concern is that there would be less left to purchase the annuity if there was a significant drawdown, even if the income doesn’t get reduced, so it would mess up his plan.

That said, it seems like he doesn’t like any of the options suggested. So @wan123 - what do you plan to do, since none of the suggestions made seem to be acceptable to you?

AJ

rolling cds or bonds 3 mo 6 mo 1y

but am still loooking for iseas