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Registered
Join Date: Apr 2001
Location: Linn County, Oregon
Posts: 48,868
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Quote:
Originally Posted by fintstone
IMHO, 8% is quite unreasonable without risk (other than paying off debt that has an 8% interest rate or more).
History says an S&P index fund will historically return that (close to 12%) over time...but possibly not short term. There is some risk. Treasury bills return over 4% with almost no risk...and one can avoid state and local taxes.
If I were retired and only had $50K...it would be in Treasury bills. It would return a little better than $2150 in a year and no worries. Investing in them is easy and can be done online.
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Gets my vote for best answer so far. Only thing I could add is that if this retiree lives in Florida the tax advantage of treasuries is not a factor.
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