Author Topic: Retirees, how are your dollars working for you?  (Read 2164 times)

KBecks

  • Handlebar Stache
  • *****
  • Posts: 2354
Retirees, how are your dollars working for you?
« on: January 24, 2014, 06:31:48 AM »
I'm curious to ask retirees how your dollars are working for you?  Do you focus on income investing?  Dividends?  Growth?   Just want to hear about people's strategies.  Thanks!

Nords

  • Magnum Stache
  • ******
  • Posts: 3290
  • Age: 59
  • Location: Oahu
    • Military Retirement & Financial Independence blog
Re: Retirees, how are your dollars working for you?
« Reply #1 on: January 25, 2014, 08:42:46 PM »
I'm curious to ask retirees how your dollars are working for you?  Do you focus on income investing?  Dividends?  Growth?   Just want to hear about people's strategies.  Thanks!
This sounds like a question on asset allocation.  It's probably more productive to analyze your own preferences and develop your own AA than it would be to follow any particular member of the herd.

Here's one way to do it:  http://the-military-guide.com/2014/01/23/im-a-boring-investment-competitor/

EscapeVelocity2020

  • Magnum Stache
  • ******
  • Posts: 3111
  • Age: 46
  • Location: Houston
    • EscapeVelocity2020
Re: Retirees, how are your dollars working for you?
« Reply #2 on: January 26, 2014, 03:16:40 PM »
I am not retired yet, but running the last mile in that long race.  I look at my equities investment as a total return.  I will not lean toward dividends because last year capital gains did the heavy lifting.  Since I'm still working, I'm in municipal bonds for the tax free income, and that was pretty significant (despite, and encouragingly in light of, Detroit).  I have a hefty balance in a Norwegian bank account yielding 3%, but that is a long story (carrying a US 2.875% mortgage as arbitrage, and more heavy in equities than I otherwise would be.)  I have had luck with emerging markets funds in the past, but looks like dead money now and going forward.  This is my X-factor.  It's always funny that the investment that I wrote off for dead last year suddenly becomes the darling.  Never follow the hot money.  Finally, I would love to leave it all behind and get a simple annuity, but bonds have been in the dumps and will not be the 90's and early '00 high school hero they once were.  Can you imagine, in the late 90's, you could buy an utterly safe and boring 30 year bond yielding 8 - 9%!  I still kick myself for being young and foolish, I don't think that will ever happen again, unless the echo boom really steps it up...  My 2 cents