Can I get some serious advise here on this board ?? I just won a law suit for the wrongful death of my wife and will Net 4.2MM. Life for me has not been fun but now its over, it lasted 7 years . I was thinking about putting half in CVY and the other half in PFF, equal amounts and maybe some in TIPS. I've never been in a situation like this before. I was mostly a day trader with no regards to income. I am 65 and will retire in a few years.
Serious postings only..
That JPMorgan bond I have no problem if I was in your position putting $500K in, that's over $20K/yr in interest. But even then, you realize you might be in it til 2026 earning 6.5%.
You'll need a living trust too if you have kids, as you probably know, put all the assets in there and no probate.
Thank you everyone. I was given the jury award last Friday and they may appeal it here in Cook County ( Chicago ) which they tell me is very hard to over turn a jury trial here. While in appeal they need to post a bond for 9.5% so I say take your time. Once I get my hands on the money I may post again and see what you experts think but I agree no more than 10% in one asset. I hit it big early on with AAPL but I was very lucky. So far its cost me 125K for expenses ( experts and such ) and the law firm has in it 700K billable hours. But for them so far no money so they are hungry.
The CPI tracks what we spend money on. That's all.
The poorest countries (and people) of the world are the ones taking the brunt of our inflationary efforts. They spend far more on raw commodities than we do.
It's a shame but that's just how it is.
As a video game addict, my dollars tend to go towards things that have fallen in price (like electronics).
Take a look at this research out of MIT. It backs the government's CPI and it was done independently. No grand conpsiracy theory here in my opinion.
"The Billion Prices Project is an academic initiative that collects prices from hundreds of online retailers around the world on a daily basis to conduct economic research. We currently monitor daily price fluctuations of ~5 million items sold by ~300 online retailers in more than 70 countries."
"The results have very closely matched the government statistics in the United States over the last three years, which gives the researchers confidence the project is working."
I could offer plenty of personal anecdotal evidence to support it as well, since I've kept every receipt since 2000. No joke.
Check out candy bar inflation over the years. You'd think with a bull market in sugar that we'd certainly be seeing it in sugar packed candy bars. Right?
oil- here's a good preferred, ConEd utility.
I'd buy near $90, that would be a 6%ish yield, look how they pay dividends like clockwork.
Another I own and scalp 200 shares from time to time is Prudential preferred, they are printing money, symbol is PUK-A, buy under 24 over 7% yield, it got close to 23 recently, use quantumonline for research on preferreds, use the lists on there.
I'm in GYB, it's Goldman Asset-backed paper, search on quantumonline. Pays 4.4%
HSBC interbank notes 2014 pay 2.5%
others pay 3% or so, see JPM notes, these are rated investment grade.
under new issues on Fidelity/AMTD
don't overload in PFF or any other ETF, only 10% of your assets MAX in any investment.
"don't overload in PFF or any other ETF, only 10% of your assets MAX in any investment."
I would qualify that. I don't see anything wrong with overloading in relatively safe investments. I certainly do and I have no complaints.
If it was good enough for Bush and Cheney, then it is certainly good enough for me.
Both Bush and Cheney were almost entirely in bonds, counter to every asset allocation model theory. Not a bad plan in hindsight.
I'm sorry for your loss.
I can tell you from experience what I would do.
I had an investment pay off and it retired me in 1999. Right now I have about half of the nest egg you have and I need to make it last longer than you do. It's been 12 years so far and I'm doing fine.
All I care about is capital preservation. That's why I have the bulk of my nest egg sitting in treasury inflation protected securities (TIPS) and I-Bonds.
The stock market has nearly doubled off the bottom so in the short-term entering now is risky.
The stock market hasn't gone anywhere in the last decade though and I'm in the camp that believes it will continue to do poorly into the future (much like Japan did when its housing bubble popped).
Check out Robert Shiller's prediction. I have a lot of respect for him. He called both the dotcom bubble and the housing bubble.
Save yourself the heartache. Build a relatively safe TIPS bond ladder and it will allow you to sleep well at night under anything but hyperinflationary conditions.
You are 65 and you have a nice nest egg. Don't try to hit the ball out of the park. There's no need.
I might alter this advice some if you have a large family and wish to leave something to them. I plan to die broke at age 100 as I burn through principal. It's not like I can take it with me.
If you wish to leave more as inheritance, then you will need to take on more risk. Is that risk worth it? Only you can know.
Just opinions of course.