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Very very low risk tolerance

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  • #31
    Originally posted by East coast View Post

    Right - typo. Curious why have you stated that number multiple times?
    8% doesn't sound sexy enough so trying out a number almost double it?

    As for the op. What is the purpose of this money? Is this cash reserves for a emergency fund is this person going to retire? Is this money that is needed in the next few years? If they're income is covered by real estate and other passive means then I don't see the harm in keeping the money in cash or short-term bonds.

    However it is funny that this person is able to invest aggressively into real estate but as fears of the stock market. Real estate can be risky as well especially if in the localized area. But it sounds like as if this person already won the game so passing up some earnings for Capital preservation is not unreasonable.

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    • #32
      Originally posted by jacoavlu View Post

      “safest”

      that’s kinda the point. Some people think a guarantee getting their dollars back at a future date plus some guaranteed fraction of a penny of yield is safe, when it’s not safe at all bc inflation is 15%+
      exactly, you're trading volatility for longevity risk, greatly losing purchasing power over time.

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      • #33
        We're all losing purchasing power right now. Stocks, bonds, real estate, cryptoassets all negative YTD while inflation is pushing 9%. Even TIPS and I Bonds after tax aren't keeping up. There's no guarantee of maintaining purchasing power at all times by investing in risky assets. You're in a race with inflation and sometimes you win, sometimes you lose. Hopefully in the long run you win.
        Helping those who wear the white coat get a fair shake on Wall Street since 2011

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        • #34
          Originally posted by East coast View Post

          Right - typo. Curious why have you stated that number multiple times?
          bc I think that's a fair number of what inflation really is

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