is it a bad idea to invest alot of money in us saveings bonds to retire?
95304
As stated, it depends on your age and your tolerance for risk. Savings bonds are guaranteed by the US Government, but only return about 4-6% per year, depending on the bond type. There are very safe mutual funds that allow you to invest over time (like bonds), but that will return a better percentage than savings bonds, which are the most conservative. Even mature people should not be investing "large" amounts of money in savings bonds, because there is a holding period. If you take the money out too soon, you pay a penalty (lose interest). Plus the returns are not that great.\n\nLastly, expecting that savings bonds will create the money you WILL need in retirement is unrealistic. You need to fund a 401(k) where you work, buy some stocks and mutual funds, then you can add some bonds. Diversification is the secret.
147476
Watch out for some of these answers. 20% return (with no time frame mentioned...hmmm) with little risk is not realistic. A private equipment leasing investment is a huge risk, not only if construction slows and business drops off, but there is zero transparency, who are they?\n\nHigh yield (junk) bonds aren't a terrible idea, but only for a portion of your money, not all. What you have to ask yourself is:\n\nDo I already have a sufficient emergency fund (3 months worht of expenses, min) set aside NOT counting the 9Gs? If so, you can invest for the longer term. If not, find a good money market account (INGDirect or HSBC Direct) and plug enough of the $9,000 in there to make up the 3 months. Depending on your expenses you may need to add money to $9,000.\n\nOnce your emergency fund is taken care of, you can invest the rest. You now have to ask yourself (or have a financial planner ask you) what am I saving this money for? Is it ok to lock it up for retirement or do I expect to use these funds to buy a house in 5 years or send someone to school 16 years from now? Your time horizon(how long you have to stay invested) is the single largest determinant of how much risk can be built into your portfolio through asset allocation. Your attitudes towards risk will fine tune your allocations. A competent financial planner can help you through this process.\n\nALSO, AVOID these spammers talking about Daily12 or Swisscash or any other pyramid scheme. They're garbage.
401858
eh, waste of time and money if you plan ahead for such a global disaster. We're all going to die someday. What you should be planning is your financial future, do you want to retire broke or retire wealthy?
143087
The government has already made it clear that the burden of responsibility for your financial future is on you. This started back with the creation of the 401k and other defined contribution plans.\n\nAmericans need to wake up! We have a pitiful savings rate as a country. It just turned Negative!! Social Security should be privatized and saved, but no-one should make the mistake of thinking that their social security retirement benefits will be enough.
785943
A very difficult question to answer. I see that you have a previous response that said yes and one that said no.   The problem is that no one knows for sure what the future might hold.  Here is what I suggest that you consider doing.  Take the amount that you considered investing in mutual funds and split it into 4 equal parts.  Invest one part now into a mutual fund that you think is good.  The other 3 parts place into a guarnteed account, bank account or short term government bonds.  Six months from now, invest the 2nd part in the mutual fund if the fund has increased in value.  If it has not, do not do anything.  Six months later go through the same exercise.  That way you are not risking more than 1/4 of your funds initiially.    And always keep 1/4 in reserve in case there is a terrible stock market crash.  That is the time that you can invest and make a lot of money so save for that event.  Crashes come more often than most people want.
1076510
As long as you have the savings bonds and they have your name on them, you only have to take them to a bank.  With you proper ID they will be able to cash them in for you and will be able to give you the proper interest.  They stop earning interest after a certain amount of time, so don't let them hang on for say 25 year thinking you'll earn lots of money, you do better investing them or putting them in a mutual fund.
842365
Everyone must create his own retirement savings.  You need to save about 15% of every dollar you'll ever make to expect a reasonable retirement.  You need to deversify your investment and maintain a good rate of return (about 8% per annum). Avoid any mutual funds with annual fees exceeding .2%.  Direct investment in stocks and bonds will greatly reduce the expense drain on your portfolio.\nPut 10% of your money into foreign investments.
581413
That's insane.  Why would you want to lose 2% on every dollar you save?  Even a passbook savings account would net you a gain rather than a loss.\n\nThe best way to retire with money is to invest in a 401(k) or Roth IRA for tax referral.  The assets you invest in will be determined by your age (the younger you are the more risk you can take on in return for higher gains) and overall risk tolerance.
32313
Yes, especially in Brazil. But be aware that the risk of international investing is higher than investing in US equities, although the reward can be higher. There are several options- mutual funds, individual securities (riskier), and several ETF's, such as ILF or EWZ.
539106
I actually do finance and asset management for families.  If you were to retire TODAY... 1 million dollars at a modest 5% return would pay you $50,000 a year.  MOST could live pretty well off of that.  Depending on your age, you might need to save a little more just to battle inflation.  (essentially   $50,000 a year will not be worth as much each year)  And, if you do not own your home, this has to be taken into consideration as well.  I just read an article that predicts in the next 20-30 years their will be significant advancements in medicine allowing us to live well into our hundreds!  So be sure your prepared to go the distance!
121220
No, alot of older conservitives don't want social security messed with, It really is a bad idea to invest in a stock market with its ups and downs. There must be an answer between that and the way it is going.
246852
It doesn't matter on a free to purchase investment such as a bond bond, but it can matter on stocks.\nIf you put down $100 once a week to purchase stock at a $15 buy fee, that a loss of 15% purchase power each week.  If you put in $1,000 every 10 weeks, you loose 1.5% purchase power, but the volitility on stocks can move that much in one or two days.  You might miss on the run up if you wait, but you take a big loss if your buy fee eats up a good percentage of what you want to put in.
450896
I heard if you put 1 mil in a savings account, you get a much higher interest rate, like 10%.  So I would put it in the bank and live off the interest.
197635
invest in a diversified portfolio of stocks and bonds for my retirement.
1147648
Stay away from Edward Jones and other neighborhood brokers.  They will fleece you completely with their 6% load fees and 5% / stock transaction.  \n\nFidelity is an excellent company.  Look into the 2040, if this is the year you want to retire or 2035.  These funds have been around for a long time and have no loads or fees associated with purchasing.  If you purchase 10K of the 2035 fund in your Roth, you get 10K worth of assets, dollar for dollar.\nExcellent website: www.fidelity.com
475214
It can be done, but take a good hard look at the situation first.. are you close to retirement?  Will you invest that $400,00 in such a way that that will not need to work any more?  that kind of money won't go far in this day and age.  Don't forget you'd also be giving up medical, commissary and exchange bennies as well as access to MWR facilities.
453308
I just spoke to the principal of an international school about this last week.  His school has worked out a Roth with an office that is in a U.S. territory nearby.  The tax is prepaid so there's no tax or penalty paid at retirement.  Email a investor in the Mainland to see what they can offer.  Some offices are just ignorant of the law, as most folks are for most things like voting, taxes, shipping things to people who are abroad.  You may want to email an investment group someplace like the Virgin Islands, Guam, Puerto Rico...  They're more familiar with policies and retirement programs for Americans living outside the Mainland.