Where would you park $800k?

[qlai]

So can we assume his house is paid off and no debts?

 

[xandman]

Short duration TIPS fund whose potential hit from rising rates will be much smaller than the inflation prints we are getting. Re-evaluate after 1H of 2022.

ex. VTIP

 

[qlai]

I'd suggest a laddered bond portfolio, he can talk to a fixed income specialist at his broker to set one up. Idea is to limit duration in the portfolio with the assumption that interest rates will be higher in the future.

How come I hear about inflation but don’t hear much about TIPs?
Edit: Oh @xandman said it

 

[longandshort]

How come I hear about inflation but don’t hear much about TIPs?
Edit: Oh @xandman said it

tips yields are negative...not sure if you'd want to be a buyer at these prices

 

[zghorner]

So can we assume his house is paid off and no debts?

Yea no debts, he’s good with money…retired firefighter and his wife is some type of nurse manager or something making decent money but wants to retire within the next few years.

 

[qlai]

tips yields are negative...not sure if you'd want to be a buyer at these prices

Looks like they did well this year.

 

[DaveV]

QRMI or XRMI

Or maybe even JEPI

Have you done any basic research before recommending these securities, or are you just guessing that based on the ETF name, they will do for the OP? For example, QRMI (Global X NASDAQ 100 Risk Managed Income ETF) is already down 2.4% YTD and only has a 1.3% dividend yield; for comparison, SPY is up 5.1% YTD.

 

[DaveV]

I can try to make 25% p.a. profit with it, by risking not more than 5%, tell him this...

I am interested to hear your recommendation for how to achieve this.

 

[xandman]

Just for clarification. The guy said he wanted to "park". So, he wants a near cash alternative.

There is no way anyone will make a positive real yield risk free. No way. This gives him a fighting chance to come out with an absolute/nominal positive yield much higher than standard treasuries.

In cash, he will loose by the inflation print (loss in real terms). In VTIP, his REAL loss is locked into about 2.5% currently.

 

[Overnight]

Just for clarification. The guy said he wanted to "park". So, he wants a near cash alternative.

There is no way anyone will make a positive real yield risk free. No way. This gives him a fighting chance to come out with an absolute/nominal positive yield much higher than standard treasuries.

I'd mention the QQQ, but that seems anathema when the age of 60YO is reached. *shrugs*