We're selling our house and anticipate $300k after the dust settles. -- Age 78 and 82.

[3Hotdogs]

The original plan was to put the money into Dow Jones, S & P and Nasdaq index funds. The goal, we want about $10k per year for expenses. The rest, to build up to have some fun and leave $ for the kids.

That was the plan before Orange Anal Fistula and a MAYBE depression or whatever else.

My head now swings towards high yield FDIC accounts for the next four years--- less return but more security.


Thoughts?

[DeeDeeNY]

1. Probably best to avoid the stock market for now

But a lot may depend on the cost of your living arrangements after you sell.

[3Hotdogs]

3. After we sell, we have SS and defined benefit pensions.

We will be short about $700 per month. No matter what we decide, we will not run out of money. Dementia care is the unknown. Spouse has a memory care policy. I do not.

[MLAA]

2. I recently took some money out of the stock market expecting chaos and put it in a 3 year annuity.

NYL SECURE TERM MVA FIX ANN II
NEW YORK LIFE INSURANCE AND ANNUITY CORP

It pays 4.5 percent. You can withdraw 10% a year without penalty if needed. I’m sure there are many similar options, so I don’t mean to recommend this specific one only wanted to give an example. I would do it as soon as you can after selling as interest rates are expected to drop slightly going forward.

Good luck!

[ret5hd]

4. thoughts from anyone on T-Bills???

short term…as short as 4 weeks…so maybe short term enough to get one’s money out if it all goes to hell.

[Hope22]

5. Our credit union, FDIC insured as long as Project 2025 keeps their hands off of that.

Seven months ago the CD special rate was 5.0 % for seven months. It just rolled over at 4.2 %. Still better than most things. Relatively short term and insured.

[EverHopeful]

6. Definitely don't want to be an alarmist but might want to check out Project 2025 on FDIC

p. 705 of the copy I have. There are some of what I call weasle words about "...a more streamlined bank and supervision by supporting legislation to merge the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Federal Reserve's non-monetary supervisory and regulatory functions. "

As we have seen, "Streamlined" might be wisely read as "Gutting" or "Destroying" or "Advantageous for me but not for thee."

[anciano]

7. I am currently doing a government money market fund

and a high yield savings account. I'm 77 and no longer have the "long run" for equity market ups and downs.
Good luck and best wishes!

[usonian]

8. Retirees need zero risk income producing investments.

Old rule 100-age in the stock market.

Maybe 70 these days.

https://myfinancialweekly.com/finance/investment-retirement-tips/

[snowybirdie]

9. We went

to FDIC insured investments totally. Forget leaving to kids, Keep yourselves financially safe. Health care could skyrocket and SS be taken away from those with a little money invested. Lord knows what will happen next. Terrible for those of us who grew up with govt. we thought was stable.

[surfered]

10. CDs yield 4.35% for 1-3 months and down to 4.15% 5 years out.

I’ve divided our nest egg and build a ladder of maturities from 3 months to two years. That way I have access to cash without having to sell one. When one matures, I replace it with a longer maturity.

T-bills are a little less at 4.28~ 4.00%

[Bmoboy]

12. In a similar position

Sold the old house last year. Bought a condo. Split the IRA's to two different banks to stay under FDIC guaranteed level.
Taking out cash every month to keep on hand, just in case.
Cutting back on all but essentials.
Of course everyone has their own ideas about what is essential.

[3Hotdogs]

13. Essentials - $2,800 keeps the lights on, buys groceries, puts gas in the cars,

pays for Netflix and Verizon, garbage bill, tenant' insurance and auto insurance.

Non essentials, birthday and Xmas presents for grandkids, eat out, maybe 3x per month, Grandkids out for lunch/supper/ice cream,

clothes (when something wears out. We don't buy stuff to keep in fashion. I don't need to look like James Bond at the casino. I'm 82 and there ain't too many babes interested in me.)

[GreatGazoo]

14. CLIP is an ETF that indexes 3 and 6-month T-bills. Pays 4.97%

and you can withdraw any time without penalities. Effectively earns interest daily.

There are are solid stocks with real assets that pay 8% annual divs but they are mostly oil and cigarettes, ugh: MO, ET, PAA, etc.

You say $10k on $300K so that is only 3.33%. T-bills and CDs would do that with 100% and peace of mind. Could have some longer term ones in the mix because rates will be cut at some point.

My favorite income investment is still QYLD -- covered calls on NASDAQ stocks. Pays 1% per month (which makes the math super easy, eg $300K = $3,000/mo). The trick on that one is to use a stop loss to avoid dips and then wait for the market to bottom before buying it back cheaper. Degree of difficulty: moderate Risk: moderate Similar ETFs with tax advantages: SPYI, QQQI

Some mix like 30% CLIP, 30% T-bills and 40% QYLD with a stop loss would be my own path in your situation but consult someone you trust and stay within the investments you understand well. Good luck!

[3Hotdogs]

15. Thx. I like the CLIP idea.

Are these available on E-trade or do they require a mutual fund account, something like Fidelity?

[GreatGazoo]

16. E-Trade, Schwab, all the usual ones

Fidelity I think only does their own funds (?)

CLIP is an ETF so it trades live during market hours vs mutual funds transfer after market close. CLIP works for your goal right now but I would think longer term and look for a mix that will guarantee you 5+% as safely as possible. Talk to whoever does your taxes or a relative that is a long term stock investor, eg someone that bought SPY every month for the last 20 years. They can give the best advice for your situation. Ask about qualified versus unqualified dividends if you don't how that affects your taxes.

https://www.globalxetfs.com/funds/clip/