Little introduction as I'm new Mr. Money Mustache. The articles brought me here as they match my finanically conservative thinking.
I've dabbled in investing but not a skilled investor. Mostly conservative buy and hold companies like BRK in my personal trading. And index funds in my 401K. It has worked out pretty well, much better than holding cash. I have maxed out my 401K contributions and minimized spending to prepare for the future as much as possible.
I'm 57 and debt free and keep talking myself out of the new car purchase thanks to Mr. MM columns talking me away from the ledge, lol.
Preparing for retirement is my next step and the steps I take over the next couple of years will greatly determine where I'm at at 65 (8 years OMG). I don't want to take a mistep in the final innings...
My company offered to buy out our pensions and I took the offer, and rolled it into a Fidelity IRA. I lost the guarantee of annunity for as long as I live, but gained an immediate balance increase of almost 100K. Now my challenge is how to invest it. I selected to initiallut y roll it into a sweep cash account so that I don't pay any fees while I figure out where to invest. My thinking was to wait for a covid impact market correction and then put it into index funds and let it ride until needed (probably 15-20 years). But my personallity will probably sit on cash too long and let it start to loose value.
I'm not sure if covid will be a short term situation or if we will enter a long period of major shifts in the economy. At this time the shifts appears to clear winners (online retailers like amazon and streaming services like netfilx) and losers (restaurants/crusie ships/airlines) due to the current world reality. I do fear sticking with my index approach will result in subpar long term performance, but picking winners seems to be a short term approach, as winners typically don't win for too long. Index fund approach removes my thinking I know where the world, companies and market is headed. But also the world is changing and not investing in innovative companies might be a lost opportunity of a lifetime as the economy shifts.
I also have retirement funds in Fidelity 401K that is almost 100% stock index (international index and U.S. large cap index). Probaby need to adjust this into more of a balanced approach as I approach retirement. I've never invested in bonds but might be time to move towards the tradition stock/bond/cash balanced approach.
I have spoken to several professionals that want to manage my retirement investments for a fee. I've always been fee adverse and paying someone over 1% to manage my money while saving interest rates are currently only 1% seems excessive.
Looking for thoughts on how best to invest my IRA ~$200K with moderate risk with the goal of acheiving 5% annually over the next 15-20 years. I'm okay with the market roller coaster as long as the long term results in historical average performance. Since I have my 401K and now IRA at fidelity, looking for recomendations on their best long term stock funds, EFT's and cash account options.
Thanks in advance to anyone that reads this and shares their thoughts.