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Originally Posted by Gigi3000
I have $250,000 to invest for income. I'm 63, keeping lots of cash on hand, own my home, not working and have no income currently. My expenses are minimal, around $1800 month. What would you invest in? can play with $75000 in high risk, the rest medium risk.
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If I were you, I would sit on that cash for a while longer. I think we are going to see some buying opportunities (euphemism) maybe before the end of the year.
That does not mean that longterm, seasoned investors will be selling. It just means that, in my opinion, it is not the time to jump into the market. Seasoned investors tend to keep some sideline cash, and maybe even a watchlist, because they are waiting for “buying opportunities.” But seasoned investors know what they own and why they own it and have seen a lot of markets and most importantly, they know themselves.
Advisors, and probably anybody who talks about it, have been having a fine time in the market since it started to climb back in 2008 — after the idiotic lending practices of the early part of this century collapsed the housing market (with those drive-by appraisals and stated assets loans) — and took the stock market with it.
During that time, there were seasoned investors who continued to hold their backbone stocks and then started buying in with some of their sideline cash when things got cheap enough. That kind of investor probably has no regrets. They know what kind of losses they can stomach.
At this time, the market is coming under a broader kind of pressure with Russia and oil and inflation and mortgage rates beginning to inch up already. (I do not think we will see CD rates moving much though. That would take a really long time and would have to mean inflation gone wild, really wild.)
There is so much coming to bear on the market right now that being new to investing and jumping in might really hurt.
You’ll get there, eventually. Meanwhile, keep learning. You’ll get your chance.
Even though you might feel like you have to put that money to work right now, if I were you, I would do what a couple of others in this thread have suggested — I would get a job. I am not talking about a career type job — just a job to cover some of your expenses so that you do not have to live totally off your cash. Build a moat around around that cash by working — even part-time would help.
I do not see how the next few months are going to be anything but rough for the market. (I have not been having the most pleasant couple of weeks.) But I found my sea legs a long time ago. It sounds like you are very new at this. . .so when you do go in, do not dive — just wade a little — as with dollar-cost averaging. And wear a life jacket.
Boomer (just talking about what
I would do if I were the OP. I am not claiming to actually know anything about where the market is going. Nobody does. But some will pretend they do.)