Requesting some advice

Sep 20, 2009 2 Replies

Some background: Married, 61 yo, partially retired living on savings and want to stay conservative in my retirement investments.



I consolidated my IRA/401 with a large brokerage house 8 years ago and moved 2/3 to cash (CD's and MM) within the last couple years. When the last CD matured the cash went to their CASH/MM account that is only paying 1/10 of 1%. My financial consultant wants me to buy US Treasuries which, if I understood him correctly, would cost 1/2 percent?? I've had bonds in the past but have never made any money with them so I have resisted going there.



He now has suggested some bond funds and a couple of dividend funds, PTTDX, ACITX, and BULIX. The rate of return is between 3.5 and 5.5 depending on which fund I were to purchase. The best CD I can find is at MetLife paying 2.00.



I really need some independent and impartial advice as to what direction to proceed. I plan on leaving my IRA alone for several more years so can take on some risk but at the same time I want to protect as much of the "cash" as I can. The other 1/3 of my IRA is in stocks and Mutual Funds (no bonds or bond funds) heavily weighted in financials.



Buy US Treasuries, bonds or bond funds, mutual funds with good dividends or CD's? Any input is appreciated.



It is hard to give specific advice without understand a whole lot more about your situation than you probably want to put in a public forum. I think the answer is "all of the above."

Here is a really good article that suggests a portfolio for a conservative retiree.

formatting link
might give you a starting point.

-- Doug

While the yields may be higher, they do come with additional risk.

I don't know that time horizon helps with risk in any comprehensible/practical way. We can't trust the ratings agencies and we can trust what's on the balance sheets of companies.

The closest thing that I've seen to planning a retirement in a near risk-free way is Zvi Bodie's Worry Free Investing.

formatting link
the bottom of that page he has a link to anotherpage where there are some videos that essentiallydescribe the approach in his book. Anoop

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required