Retiring in 15 yrs...$100,000 to invest

[bhc123us]

Hello,

I am a newbe to investing and this is my situation:

I am 40 yrs old and will be retiring at 55.

I have 401k, pension and retirement at my job.

I have a 15 yr mortgage on my home.

I have 100k that I need to get max return (at the same time, safe) so I can

have it as an addition at the time of my retirement.

I was doing some reading and thinking of "ladder cd".

Safe?

thanks!!!

bhc

[jIM_Ohio]

Hello,

I am a newbe to investing and this is my situation:

I am 40 yrs old and will be retiring at 55.

I have 401k, pension and retirement at my job.

I have a 15 yr mortgage on my home.

I have 100k that I need to get max return (at the same time, safe) so I can

have it as an addition at the time of my retirement.

I was doing some reading and thinking of "ladder cd".

Safe?

thanks!!!

bhc

max return and safe will not happen in same investment.

Is your 401k and pension enough to live on? Have you projected expenses to retirement and do you have a retirement plan (both accumulating assets while workng and spending them in retirement).

[Beppington]

Hello,

I am a newbe to investing and this is my situation:

I am 40 yrs old and will be retiring at 55.

I have 401k, pension and retirement at my job.

I have a 15 yr mortgage on my home.

I have 100k that I need to get max return (at the same time, safe) so I can

have it as an addition at the time of my retirement.

I was doing some reading and thinking of "ladder cd".

Safe?

thanks!!!

bhc

Max return compared to what?

Safe compared to what?

[disneysteve]

I have 100k that I need to get max return (at the same time, safe) so I can

have it as an addition at the time of my retirement.

I was doing some reading and thinking of "ladder cd".

I think "max return" and "safe" are opposing goals.

If you won't need this money for 15 years or more, why lock it up in CDs? With that long a timeline, there are probably better options.

[GREENBACK]

Have you looked into an IRA or Roth IRA? Remember, there are tax advantages there and it sounds like you make enough to max an IRA out every year for the rest of your career.

As for the 100k? Even the most conservative investments are going to do better than CD's and with pretty low risk. I assume you don't need access to the money or all of it.

[Beppington]

The better way to say it is, "safe" is at one end of the spectrum & "max return" is at pretty much the opposite end.

You need to do some reading to get educated enough to determine where in between them your money needs to be.

Usually, if you're older, your money should be closer to "safe" ... Younger closer to "max return".

"Safe" = Cash in a safe deposit box; cash in your home safe; CD's; savings account; checking account; money market account; bonds ... generally in order from safest-to-less-safe.

"Max return" = Generally means riskier: Gambling; hedge funds; individual stocks, stock mutual funds, real estate ... generally in order from most-risky-to-less-risky.

Others may have more to add to these lists, or have a slightly different order for them, but this is close.

Research shows most people should own at least some of each of these, in order to be diversified (for safety) & have a good chance at increasing value: Cash (for living expenses plus an 6-month to 1-year emergency fund), CDs &/or MM, bonds, & stock mutual funds.

Gambling should be kept to a minimum ... & for entertainment rather than investing.

[disneysteve]

Beppington, I would say cash in a home safe is less secure than a CD, savings or checking account since the latter 3 are FDIC insured and the cash in your safe is not.

[Beppington]

Beppington, I would say cash in a home safe is less secure than a CD, savings or checking account since the latter 3 are FDIC insured and the cash in your safe is not.

OK ... Of course it's a judgment call. Some gun owners probably think their home safe is the best protected place.

[disneysteve]

OK ... Of course it's a judgment call. Some gun owners probably think their home safe is the best protected place.

Being a gun owner is irrelevant if you aren't home when your house is robbed.

I know people who have had their homes robbed and the entire safe stolen, even ones that were wall or floor-mounted.

[GREENBACK]

I know people who have had their homes robbed and the entire safe stolen, even ones that were wall or floor-mounted.

Yes, this definitely happens. The guns or whatever was in the safe were likely covered by insurance. I wonder what the Ins. co. would say if you told them you had 100k in it. I don't even want to think of going that route.

[snafu]

Keep in mind that you will not be withdrawing your entire investment sum at age 55. Depending on your specific circumstances at that time you will likely want to draw down a specific sum each month. I have the impression that you have a employee defined pension + 401K Investing requires some level of RISK but it is only a four letter word.

Individuals who have more than a 5 yr investment window typically breakdown their portfolio in percentages they find comfortable. Before you take action why not take the time to read/learn your options. Stop by your library for one of the yellow books..."Investing for Dummies," is a fun read.