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    should I invest savings?

    I am a retired 78y senior citizen. I have a large savings account in a bank, not sure whether to keep it there for safety or find some low risk investment? My monthly income is sufficient for my needs. Too old to take chances however. TIA hette

    #2
    Originally posted by Hette1 View Post
    I am a retired 78y senior citizen. I have a large savings account in a bank, not sure whether to keep it there for safety or find some low risk investment? My monthly income is sufficient for my needs. Too old to take chances however. TIA hette


    At 78 I'm spending money like there's no tomorrow, have some fun and don't worry about low risk or chances, let loose and let it rip
    retired in 2009 at the age of 39 with less than 300K total net worth

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      #3
      Don't get me wrong, I'm not saying blow the whole wad but have some fun. My dad always wanted a 2 seater sports car and it never came to be, he left with an estate worth a dozen little sports cars
      retired in 2009 at the age of 39 with less than 300K total net worth

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        #4
        Vanguard LifeStrategy Income Fund (VASIX). Expense Rate is 0.12%

        https://investor.vanguard.com/mutual.../overview/0723

        20%stocks/80%bonds

        do your research on that suggestion...

        or online account like CapitalOne360 where you can get 1%
        Last edited by Jluke; 05-11-2017, 08:58 AM.

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          #5
          A mutual fund or even staggered CD's are pretty tame and would get the job done. Have you thought about doing anything else with your money, like adding to grandkids' college funds or starting a charity fund for the tax benefits?

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            #6
            Welcome to the site.

            What is this money for? Is it money you expect to need for yourself at some point? Do you want to leave it as an inheritance to family? Would you like to support some charities that are meaningful to you?

            Knowing the purpose of the money will help answer the question of what to do with it.
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

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              #7
              thnx to everyone for your input It is money that I want to have available for my care should that be needed as I get older and/or leave money to my children. I did get a couple of 2% 17month CDs thru NFCU and put money in their 0.65% savings account. Will look into Capitol One's 1% online too. My CPA suggested that my savings may run out with yearly inflation because its not earning much. I consulted with a financial adviser thru NFCU and decided on very conservative $100K investment thru S&P investments but when I read the fine print and realized I could lose some of it I wasn't sure if it was a good idea and haven't signed anything. Btw I also have some good solid stocks that bring in small dividends every month.I don't get a big income every month but it covers my needs. hette

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                #8
                You seem to have it under control - just be very careful of using a financial advisor (they are more like salesman).

                Always check to see if they are charging you 1% of AUM (Assets Under Management). That adds up quickly and will reduce your return. Because even if your funds lose value, the salesman is still going to take the 1%.

                And check the ER (Expense Rate) for each fund and whether they are no load or charge yet another fee.

                You really are better off investing on your own - we can help

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                  #9
                  Originally posted by Hette1 View Post
                  I consulted with a financial adviser thru NFCU and decided on very conservative $100K investment thru S&P investments but when I read the fine print and realized I could lose some of it I wasn't sure if it was a good idea and haven't signed anything.
                  You were right not to go through with that. Stay far away from financial advisers. Most are no more than slick salespeople akin to used car peddlers. They do what is in their best interest, not yours.

                  There are plenty of simple and inexpensive ways to invest if you are interested in doing so. Plenty of folks here can help guide you in how to go about that.
                  Steve

                  * Despite the high cost of living, it remains very popular.
                  * Why should I pay for my daughter's education when she already knows everything?
                  * There are no shortcuts to anywhere worth going.

                  Comment


                    #10
                    at 78 and large amount of savings, have you thought about wealth transition + savings? e.g. a whole life insurance policy?

                    Comment


                      #11
                      Originally posted by Kaoru View Post
                      at 78 and large amount of savings, have you thought about wealth transition + savings? e.g. a whole life insurance policy?
                      Whole life is a rip off. Stay far, far away from anyone telling you that it's a good idea.
                      Steve

                      * Despite the high cost of living, it remains very popular.
                      * Why should I pay for my daughter's education when she already knows everything?
                      * There are no shortcuts to anywhere worth going.

                      Comment


                        #12
                        Hette, Pretty much any investment that isn't paying out at least 3-4% isn't a safe investment because your money is literally losing value by way of inflation even if it isn't much. So by trying to stay 'safe', you are doing yourself a disservice. You seem to be happy with your stocks and the dividends they are paying out. Have you considered spreading the money out and investing more in each of the same stocks? Or through Capital One 360 (everything is on line), you can buy the same stocks and have it set up that the dividends are reinvested into the stocks and so they will grow. Did you pick out the stocks yourself or did someone else? Since you seem to be currently happy with them, no reason to go looking for different ones.If you need the money for your care, it can be tapped little by little, but it still has a chance to grow more than what it is now. if you never need 'care', I'm sure your family will appreciate the money that is left behind.

                        You also might want to think of something you have always wanted for yourself or a charity you really believe in and give some of the money so you can see the good it is doing.

                        The also have things like family trusts that can be set up, but I can't explain it all or know if it is really good for someone in your situation. But it would make it easier to transfer money to your care and then to family members.

                        If you are still living in your own home, are there any fix it things that if done now will save money down the road and help make the house more attractive to potential buyers later on? If so do them. If your furnace or hot water heater, etc. are over 20-25 years old, you may want to think about getting new ones that will be more energy efficient and won't be dying on you and leaving you cold in the middle winter. At least in my area, that is when furnaces bite the bullet!

                        Hope some of these will help, but please do remember that 1% interest isn't safe as it isn't really keeping up with inflation. It is just one step removed from keeping it in under the mattress.
                        Gailete
                        http://www.MoonwishesSewingandCrafts.com

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                          #13
                          Welcome to SA. I agree with Gailete, your savings are losing considerable value to inflation. Have you researched the escalating cost of future 'assisted living' care? Understand there is risk involved in every choice. I hope you'll read some of our discussions on investment choices. Disney Steve often participates and points out pros and cons of various ideas.

                          We used to balance allocation by subtracting our age from 100 but time has overtaken that standard.

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                            #14
                            You can invest in mutual funds of your choice based on your financial planning, goals, investment horizon and risk tolerance. you can look at liquid funds to park your money for a short term. In the meanwhile, you can invest via SIP in mutual funds, either in debt funds, equity funds or to keep a balanced portfolio.

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                              #15
                              There are many options out there and it can be overwhelming only you can decide what you feel comfortable with.

                              I have to put my 2 cents in on advisors, yes some are slick sales people only looking for commission......... however to assume ALL are is very short sighted. I do NOT think the stereotypes help. In almost ANY profession there are People to avoid but how does that make ALL in that profession that way? I only say that because the responses the minute the word "advisors" is added seem to jump to that conclusion.

                              Yes if you have an advisor you there may be fees but only the investor can decide if that is a fair trade for them. Seeking out professional advice on any subject that you are interested in is NOT all bad ...

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