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Originally Posted by Skillet83
Saw a current thread regarding investing, thought I would ask. Assuming a small 7 figure cash amount, what to do? Real estate is covered. Preservation of capital with some return is goal. My thought is we have a correction coming. Stay in treasuries, bond funds? Opinions please.
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A lot depends on time horizon, other current sources of income relative to needs and how strong a stomach you have.
Trying to predict the future isn't something many of us do well, best to have a diversified plan and then dollar cost average into low cost index funds and invest for the long haul riding out the intervening ups and downs, trying to time the market is a fools game.
Currently an S&P500 index returns ~2% in dividends per year + what ever capital gains the market allows, better than most bond funds, you can expect that to vary in the future, hence diversify into the total market and bonds, the % of each depends on time horizon and stomach for risk. If you have a reliable source of other current income you can have more % in stocks if your stomach can take the inevitable ups and downs. if this is your primary source of current income you will need to be more conservative, usually this means more low yielding fixed and bond investments