[TommyJefferson]

Is this a good diversification mix? I just cashed out a large inheritance of stock and this is what my A.G. Edwards guy is telling me:

----------------------

Objective: Availability of Money and Some Long-term Conservative Growth

Mix - Investment - Objective - Potential Total Return - Potential Allocation - Rationale

25% in Cash Money Mkt. Liquidity 4% currently Good return with free check writing ability; always available

25% in CD’s No risk 4.95% 1 year Next source of liquid money; better rates

25% in Balanced Fund Growth & Income 11% Conservative 70 year track record with a stock/bond split; no guarantee; no penalty to sell at any time

25% in Nationwide Annuity Guaranteed principal return 8%+ or - For a 5 year time period, invest 60% of your money in stock mutual funds, but at worst get your principal back in 5 years

I'm thinking I should go more with cash if the stock market is at all time highs and the real estate market is peaking.

But will those CD's beat inflation for a year?

Right now the money is just sitting in my checking account. I'm about to cash out some more AT&T stock.

Any thoughts appreciated!

[cube]

$this->bbcode_second_pass_quote('TommyJefferson', 'I')s this a good diversification mix?

[Vexed]

put it all on black

no, but seriously

put it all on red

no, but seriously

if it was an inheritance

you have already come out ahead

[bobbyald]

So you’re backing the US$ AND believe the Government!

Wow you’re some gambler – good luck mate.

Same as putting it all on black really.

[topcat]

TJ, Vexed is knda right. We do not know any of what I think are the 'other things.' What is your debt, cash flow, assets, age, dependants, etc.? Home paid off? Two 100 oz gold bars buried in the back yard? Yeah, you hit the Lotto but it also means that you may have lost someone near and dear to you.

Seriously, last question first, can't tell if the CD's will beat inflation unless you believe in the manipulated CPI figures the govt puts out.

We have some CD's, but I opted for a slightly lower return for more liquidity. Have three 91 day CD's paying 4.25% that are 'laddered.' Every month one of them rolls over or is available to be spent/invested in another manner.

Yes, AG has laid out just what you have requested, a conservative mix, 50% in cash. Could be good, could be missing some opportunities, my crystal ball is out being polished.

Do not understand annuities, never took the time but our financial guy always wants to sell them to us. No help here.

Things to think about:
Do you want to 'actively' manage this or rather just let it be run by someone else and not have to worry? Out of sight, out of mind.

Do you have other investments? Are they also long-term conservative growth?

Any exposure to emerging markets? Small caps?

What about precious metals?

Commodities, not the actuals but stock-wise?

If the market is at an all-time, and does head south, not all stocks/funds will.

You said it is in a checking acount now. Hope it is an interest-bearing account. If not, get it into the money market you mentioned until you arrive at your decision(s).

If you lost someone very close, my condolences. Depending on your circumstances, do not make life-altering changes immediately unless well thought out. I know I did once.