I need some suggestions please!

[TrixAre4Kids]

I sold my home at the end of 2012, and I've got over 100K from the proceeds sitting a savings account earning .85%.

It's making me nuts that the interest rate is not even keeping up with inflation. So I've been trying to think what to do with it. 

I thought about moving it to a money market, except their rates are even worse! I thought about some kind of inflation protected TIP so I came over here to see if I could find any threads on the subject. I didn't find anything on TIPS but I did start reading the 54 page thread on dividend investing. And now I'm thinking it sure would be nice to make a little interest off this money and not just preserve it, so to speak. And then I think I'm getting greedy, and need to get slapped around alittle so why not ask for advice from you wise folks.

I'm not sure what I want for this money exactly, meaning I dunno if I'll ever buy another house. If I do, I doubt it would be before I turn 65. I'm 57, almost 58 now. I retired in 2012, and I'm living off pension and some rental income. A few extra dollars would certainly be appreciated. I have about 600K in my retirement accounts, but I don't want to touch that for awhile. 

So..let the slapping commence!  Just..be gentle. I'm trying to make the best decision here. 

[justme]

Not personally well versed, but I've been seeing a few articles as of late on how the bond market isn't as safe as people think. Seems like they were saying a sort of bubble is happening there because everyone moved from stocks to bonds during the crash.

[TrixAre4Kids]

Thanks wxyz, I'm currently working my way thru the 54 pages of 'Dividend Stock Investing', I will read 'The Long Term Investor' thread next. 

I appreciate any helpful advice you all can offer me.

[clarkrl2]

TrixAre4Kids, you could look at TreasuryDirect if you haven't already. If you hold an actual 5-year note to maturity you won't have to worry about losing the principal as you would in a bond fund. The current yield is 1.4%. The risks are if you sell the note before maturity you might lose principal or whatever the likelihood that the US government would default.

[bimetalaupt]

Jun 29, 2013 22:59:41 GMT -5 TrixAre4Kids said:

Thanks wxyz, I'm currently working my way thru the 54 pages of 'Dividend Stock Investing', I will read 'The Long Term Investor' thread next. 

I appreciate any helpful advice you all can offer me.

TRIX,
WXYZ BRINGS UP TWO POINTS..INCOME AND RISK..MOST INCOME STOCKS AND UNIT TRUST HAVE LOWER STANDARD DEVIATION IE RISK. MOST NONE DIVIDEND STOCKS HAVE MORE RETURN AND MORE RISK.  LOOK INTO THE EFFICIENT FRONTIER...HOW MUCH CAN YOU RISK..REMEMBER YOU ARE NOW LOOKING AT A MARKET THAT IS UP 100% FROM MARCH 2009!!.

ALSO YOU ,MAY WANT TO VISIT THE QUESTIONS FRANK ASK OF ME..MY ANSWERS ARE FOUND ON SUPER FED-WATCH...
Just a thought,
BiMetalAuPt

#1 I believe you have too many positions with isn't allowing you to capture the return you seek with the model you are using

#2 I believe the deviations you are using as a mean have higher risk valuations than what I would associate them with.

#3 Within your "efficient frontier" model how do you account for your rebalancing moves to capture optimal return?...is it set or random?

,
 

[TrixAre4Kids]

Thanks for your thoughts so far. It does not seem that there is anywhere I can just park this money and expect it to keep up with inflation. To do that, I will need to assume some risk. Is that a fair statement?

I do not mind assuming some risk. 

BiMetalAuPt - Where do I find the Super Fed-Watch?

[ModE98]

There is ALWAYS an element of risk in almost any kinf of investment. It cannot be avoided. There is less risk in high quality, well established stocks such as, MMM, KO, PEP, PG, etc. (see wxyz's model portfolio on long term investor thread for more).

If this market should have a mild 10-15% correction within the coming months, you may be able to acquire a few top dog stocks for a nice discount from recent highs.  No need to rush in where angels fear to tread until the market is more settled.  Or, could buy a small initial "core" position, and dollar cost average on dips to build a handful of top quality stocks over the next year.  Just my two cents.