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Old 08-10-2016, 10:15   #61
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Re: Best investment while we travel

If not real estate... just buy an S&P500 fund, Spider, etc. Most managers and advisors can't match the results of the S&P500... in fact a study was done not long ago and @80% plus of all prime money mangers did not best the returns of the S&P500 for a rolling 10 years.
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Old 03-11-2016, 06:48   #62
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Re: Best investment while we travel

I will be doing this in the next 3.5 years and will plan on having about the same amount. I cannot tell you what to do, but tell you what I am planning on doing and let you make the choice if it sounds good to you as well.

Estimate out one year of expenses and keep that in a Money Market account or online savings (should generate 1% ish)

Then take about 12-18 months and place it into the highest % CD you can get.

Take the rest and park it in a mixture of Funds, preferably Vanguard. Try something like 50% Total US, 20% International, 10% REIT, 20% Bonds.

You have the cash to last you a year. The CD is there in case there happens to be another recession and you wont have to remove your money from the market when it is down low. Almost all recessions in the past have not lasted more than 12-18 months. The funds you can choose at Vanguard should have fees below .5% down to .05%.

Good luck and Enjoy!
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Old 03-11-2016, 07:18   #63
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Re: Best investment while we travel

Read most recent news on UK inflation forecast for 2017 (to quadruple) to understand how easily any plan based on financial instruments (esp. bonds and bond related instruments).

I mentioned this somewhere up the thread. US inflation indexed bonds at negative yields already (you are losing money). Non-indexed at mickey mouse positive yields (to be wiped out as soon as inflation picks up).

So plan accordingly. See the consequences of artificially low interest rates induced by money printing in the US and the EU. Act (invest, save, keep) accordingly.

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Old 03-11-2016, 17:31   #64
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Re: Best investment while we travel

Quote:
Originally Posted by Crazcarl View Post
I will be doing this in the next 3.5 years and will plan on having about the same amount. I cannot tell you what to do, but tell you what I am planning on doing and let you make the choice if it sounds good to you as well.



Estimate out one year of expenses and keep that in a Money Market account or online savings (should generate 1% ish)



Then take about 12-18 months and place it into the highest % CD you can get.



Take the rest and park it in a mixture of Funds, preferably Vanguard. Try something like 50% Total US, 20% International, 10% REIT, 20% Bonds.



You have the cash to last you a year. The CD is there in case there happens to be another recession and you wont have to remove your money from the market when it is down low. Almost all recessions in the past have not lasted more than 12-18 months. The funds you can choose at Vanguard should have fees below .5% down to .05%.



Good luck and Enjoy!

Great advice. Love my Vanguard!
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Old 04-11-2016, 05:23   #65
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Re: Best investment while we travel

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Originally Posted by Crazcarl View Post
The CD is there in case there happens to be another recession and you wont have to remove your money from the market when it is down low. Almost all recessions in the past have not lasted more than 12-18 months.
The recession itself may only last 12-18 months, but the market can take a lot longer to rebound.

The recession of 2008 is a perfect example. Yes, the recession itself lasted less than 2 years. Look at the S&P 500 index, though, and you will see that after the precipitous drop in March of 2008, it took four years for it to get back up to that same level again.

Hence, even if you had two years worth of expenses in a CD, you would still have had to remove money from your other investments when the market was "down low."

What you have to do is find an appropriate mix of different types of investments that fit your tolerance for risk. This is called "asset allocation," and the subject of asset allocation is way too involved for a forum posting. Nonetheless, if you want to live off of your investments, asset allocation is something that you absolutely must understand.
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