I don,t know if the next 30 years in the market will exceed or match the last 30 years but I do know that current CD rates won't keep up with inflation so most of my investment are in the market, invested in stocks, mutual funds, fixed income (preferred stocks and bonds),and variable annuities with guaranteed death benefits and guaranteed living benefits. The annuities do cost more but I feel they are worth it because they DO more. Remember (cost vs benefit). More on the annuities,
cost more / do more, A variable annuities invest with mutual fund companies and tack on the extra cost so that they can provide death benefits and living benefits that last for life. mutual funds can't do this. I don't know about you but I believe this great market we have experienced will correct sometime but who knows when. For me, not everyone, the extra cost of a variable annuity vs mutual fund or stock is worth it, especially with the high market we now have and low interest rates on many fixed income products. why not invest some of your funds into a product that has historically beaten inflation and has the death benefit and living benefits that aren't available in mutual funds. And please don't think that when you die the annuity company keeps your money, the living benefit is just that you do not annuitize it. I am planning on our investments to last for 30 years and protect purchasing power since we might last 30 years. I don't believe older people have lower cost of living, only 2 things i know of that are cheaper today than in the past is electronics and life insurance (due to mortality tables, people are living longer). As we age, health care, nursing homes cost more and in my opinion, need for long term care (nursing home) is much more devastating to portfolio than temporary market correction or increasing interest rates.
Last edited by murphy; 01/31/20 11:48 PM.
