[Shimpy]

Originally Posted by billethkid

If one can have a mortgage with interest rates 2-5 points below what can be earned in the market why work to pay cash for anything?

While it is a persoanl choice, it seems there are many retirees who "feel" more comfortable paying off the house. And if the "feel" is that important so be it. Or it may be one's goal to not have a mortgage...that is another choice.
btk

I agree 100%. I was going to pay cash for my home, then realized I'd rather pay cash one month at a time and keep the balance in investments. I'm way ahead now and have the good feeling of having available funds for emergencys.
Money tied up in your home isn't readily available.

[Steve Gawdun]

REITS..Such as AGNC, NLY, and PSEC. They've bottomed out and will start to recover. Yields are the best and that's what it's all about. Some would say it's to risky, then take all the cash and put it in a safety Deposit Box. No Risk and Principal amount is safe. CD's yielding 2 to 3% if your lucky then taxed then 2% inflation, well...You end up losing principal and tax liability stinks. Good Luck anyway.

[DonH57]

I wished I saw this thread at page one. My money would be on canned goods and shotguns especially before the next tremendous weather event.

[rubicon]

Thank the Fed for the over the top double digit increases in equity funds be it individual index, etc and it may well continue as wall street continues on this sugar high and brokers/advisors sit back on automatic pilot collecting their high fees.

The only exceptions bonds, CD's money markets because of the Fed's QE's

S&P Index appreciably over 25% this year.....be ready for the bubble if Fed tapering continues. Also possible if economy does not continue its upward trend the Fed will ease off the tapering.

[Happy Snowbird]

Why would anyone give up double digit returns by paying cash or paying off their house rather than taking a single digit mortage? I don't like payments but my theory is "always use somebody elses money and watch mine grow". I never owe more than I can pay off.

[rubicon]

Originally Posted by Happy Snowbird

Why would anyone give up double digit returns by paying cash or paying off their house rather than taking a single digit mortage? I don't like payments but my theory is "always use somebody elses money and watch mine grow". I never owe more than I can pay off.

the proper application of leverage is what makes rich people even richer. it is Warren Buffets so not secret to wealth creation

[manaboutown]

Ever hear the story of the dumbest guy in the class?

He flies to the twentieth class reunion in a Gulfstream IV and at the party emerges from a limo with a young hot blonde on each arm. No one can understand how this fellow got so rich so one classmate finally asks him. The guy responds "I make 4% on everything I do. Puzzled, the classmate asks "What do you mean by 4%?" The guy responds "You know, buy it for a dollar and sell it for four dollars."

Sounds like the way to go to me.

[jimmyson1]

The Pentagon Federal Credit union is now offering a 5 year Certificate of Deposit with a yld at 3.04%.

[JP]

10 year US Treasuries just went over 3%.

Probably a good sign that inflation will be coming back in the next couple of years.

[manaboutown]

Having just read Jim Roger's new book, "Street Smarts", I am going to look into moving some more money out of US stocks into some Asian companies.

[Ecuadog]

Originally Posted by jimmyson1

The Pentagon Federal Credit union is now offering a 5 year Certificate of Deposit with a yld at 3.04%.

By the by... as a member of Pen Fed, you can get a credit card that gives 5% cash back for gasoline purchases at the pump and it has no foreign-transaction fees.

[JP]

I'm big on Canadian companies. Canada has lots of natural resources that they freely mine and lots of energy resources.

[David C]

There are lots of good suggestions here. If you are retiring and haven't paid off your primary home, you may want to consider doing so. I personally don't like to invest in the stock market. I have no control and who knows who is doing what...

I prefer to invest in real estate for a buy-and-hold strategy. Finding properties that are good rentals for good families and having them cash flow. Have you ever thought about doing something like that?

-David

[gardeniagirl]

With a matured IRA in Dec. and new even lower CD rate, the research I've done says bonds may be on the way down with the govt. not pumping them up as they have, interest rates may be heading up, and index funds are most recommended. I'm looking at Vanguard Wellesley and Wellington, and there are several others that look stable with a return of around 8 to 15%. The costs are very low, you can make changes at anytime. Some of the "widow" stocks that have been recommended for safety and dividends(were about 5% quarterly) are Duke Energy, Verizon.
I would NOT invest in annuities....first words out of the mouth of every financial planner...non liquid, they get big commissions, if you withdraw sooner than the term, penalties wipe out gains.
CD's are FDIC insured for every beneficiary you have on the account, so
two beneficiaries would be insured for $250,000 each, or $500,000 total, if I remember correctly. Ask the bank, as some are not even well informed about it.
I negotiated a CD with a local bank for 1.45% (not much, but better than me paying them) that is a 5 yr., but they waived the term if I want to withdraw all of it at anytime, I can without penalty and can deposit or withdraw at any time, but not use it as a checking account. Some banks WILL negotiate CD rates. Be sure there's no fees if you move it to another bank at maturity (Wells Fargo does, I think).

[kittygilchrist]

Originally Posted by spk7951

The FDIC insuring up to $250,000 of deposits is set to return back to $100,000 at the end of this year.

I can't find any info to confirm this. anybody?

edited...nevermind. someone already posted the answer. It is not happening...