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QUESTION:
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investments | | I am 65, single, no job and only income is from my $600,000 in savings. I have a mortage of $140,000. I would like to know how should my money be split up or not, all in stock, mutual funds, money market or CD's? Thanks. |  | asked by wwhuff, 3/18/2008 |
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Categories:
Financial Planning for Retirement
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| ANSWERS: | | Answered by: grandpa24551, 03/22/08
Overall Rating:  | If possible, find yourself a job that you would enjoy, a job that you know that you would be able to do well. And try to find it as soon as you can.
My reason for beginning with this advice is that Long Term Debt at age 65 is a burden. You will have additional health issues that may be a significant financial burden as you continue to age. Trust me -- I know from personal experience, as well as the experience of others my age and older, that medical expenses can only increase as we get older.
In fact, the most medically expensive month of your life may be the month before you die.
As you know, the financial industry is in turmoil as the Jewels of Wall Street are starting to collapse. Inflation is increasing -- in part because the Fed is reducing the cost of money, again. So we are undergoing a period of transition with turbulence added.
So there are few "safe" places to place your money. I do know that a good principle to follow is to try to preserve your capital vs. trying to get the highest return on your money at this time.
With that in mind, I might look at Inflation indexed funds including U.S. Bonds that are indexed to the CPI or something similar.
Good luck. Login to rate this answer:  | | Answered by: Daddy Paul, 12/29/09
Overall Rating: Be the first to rate it. | I would recommend a 50 – 50 split non stock – stock.
For fixed income I like short term bond funds at this time.
Short term bond funds: In a rising interest rate environment you want to keep your duration on your bonds as short as possible. My recommendations on these funds are as follows:
Janus Short-Term Bond fund symbol JASBX. This fund has never lost money in a given year. Year to date from Jan 1, 2009 to September 30, 2009 this fund was up 7.37%
PIMCO Low Duration bond symbol PLDDX. This fund has lost 1.58 percent in 2008 its worst year. Year to date from Jan 1, 2009 to September 30, 2009 this fund was up 11.44%
http://hubpages.com/hub/highbond
For mutual funds I like a mix of small cap, large cap, and international.
I am inclined to put a little more in small cap and international at this time.
http://hubpages.com/hub/best-global-funds
Best of luck to you.
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