Quote:
Originally Posted by melpetezrinski
Oh, there are so many variables that go into that decision but I will say that a majority of investors will agree with your “hardly a good investment” stance but there are many investors that are extremely conservative when they reach certain stages of life or don’t invest in the stock market. For those investors, 4% can be “a good investment” (Interest rate of change * investment portfolio exceeds inflation rate of change * expenses).
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Careful planning has allowed us to ladder CDs from 4.00%-4:50%-4:75% through credit unions and banks, no fees. We have a reserve amount in a money market fund and a small balance CD at a lower rate which we will apply to this year’s RMD. With the social security increase, we are able to manage the raging, current inflation with the planned principle attrition. Everyone has different needs and requirements, as we know.