Talk of The Villages Florida - View Single Post - Is the market going to crash?
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Old 06-11-2021, 01:05 PM
lindaelane lindaelane is offline
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(1) I am not sure why this portfolio is called "Aggressive" unless asset allocation changed over time and you are quite senior. Something seems wrong here. Aggressive means not conservative. (2) I strongly second the recommendation for Dave Ramsey "Total Money Makeover". (3) If you have $250,000 you can find a professional who is a "fiduciary" to work with. They must be a "ficuciary" of you could be put in products not appropriate for you, which give good commissions to the finance person. (4) There is nothing wrong with a good annuity, but they are very complex and good ones are hard to find. There is, however, a type of annuity called a SPIA - basically, you give then X amount of dollars and they give you X amount of dollars a month for life, no matter what happens. They are insurance products and none has defaulted in over 150 years, so you are safe in a SPIA but your rate of return will not be high and you must hold it for about 20 years, on average, to get back what you put in. Without taking a lower rate, if you die, you do not get back what is left of what you put in. Some conservative investors believe they should have an annuity to cover "basics" (house, utilities, gas, food, etc.) and other investments to purchase beyond basics. (5) Do you have a budget? This is important. Know your basic budget and what you can afford to spend beyond that. (6) You cannot know if the market is going to crash. If I were you, I would assume that half of what I have in stocks, and a third of what I have in bonds, **could** disappear and not come back for 8-10 years or so, but that that dire event is under 50 percent probable. Who actually knows how probable? Then I would decide how much I want to risk in order to get investment returns. (7) I might consider putting the rest of my money in TIPS, but I do not use TIPS so you should consult a professional about them. TIPS stands for Treasury Inflation Protected Securities - they go up with inflation but not more than inflation.