deadeyedick wrote:Wow! That almost keeps up with inflation.
The current state of inflation is *{cough, cough}* transitional.
If you believe the market will bounce back (it always does eventually) I'd DCA into broad market funds while they are "on sale". Nobody knows when the bottom will happen and when it will turn to corner. I personally believe that we have some more rocky roads ahead before things settle down (just my opinion).
Cash is king so it's a good idea to have a cushion sitting around for mid and near term use. An emergency cushion in case you need tap into it right away. You never know when some hospital bills might come into play, your car needs to be fixed, or if you want to buy golden toilets, a kitchen upgrade, your furnace/AC $hits bed, need to buy stone dust and patio pavers...
In my opinion, Series I bonds is a good place to stash some extra cash
that you don't plan on using for awhile. With a minimum buy in of $25 and a guaranteed return of 9.6% right now (inflation adjusted every 6 months), it's better than a savings account. Again, one should have a cushion and liquid assets that can be tapped into for any immediate or unplanned things (a short term safety net).
Another option is buying TIPS (Treasury Inflation-Protected Securities). These can be bought on the open market within your IRA or 401(k) (however it's rare that an employer sponsored 401 will have a TIPS option in their investment choices). I don't use TIPS, I think they kinda suck and would rather use the money in other equities. That's just me.
https://www.treasurydirect.gov/indiv/products/prod_tipsvsibonds.htmAlso,
never take financial advice from some blockhead on a discount internet cigar forum.