Part 6/8:
- Long-Term Bucket: Investments in this category, which won't be needed for many years, can be more aggressive, allowing for maximum growth potential.
Using the example of 529 college savings plans, the importance of not treating all investments the same becomes clear. As funds were designated for education that was not fully utilized, deciding how to invest that money going forward will significantly depend on when it can be accessed and utilized.
Short-Term Investments in a Volatile Market
With current interest rates on safe investment vehicles like money market accounts or treasury bills surpassing 4%, retirees are afforded a unique opportunity to lock in profits while maintaining safety. For instance, strategies might include: