2007-06-02 15:46:52 · 8 answers · asked by lstr_jn 1 in Business & Finance ➔ Investing
At this point in your life, the best thing is to protect the value of your savings while having a moderate amount invested in stocks, in case you live a long time. Stocks, over the long term, are likely to provide more gains than other investments. But they are risky, and can saddle you with losses. That's why you don't want more than a moderate amount in stocks.
The easiest thing for you to do is invest in a lifecycle or target date fund for retirees. These funds are managed by financial professionals who allocate your money into a diversified portfolio. If you pick a lifecycle fund for retirees, most of your money will be invested in bond funds, and probably less than half will be invested in stock funds. The fund managers do this for you. You don't have to do any investment strategizing yourself. Vanguard and Fidelity have relatively low cost lifecycle or target date funds. Call them and discuss your situation. They'll probably be able to help you choose an appropriate fund.
Be careful about how quickly you spend your retirement money. If you'll be retiring around 65, it's best not to spend more than about 4% a year. If you're retiring around 60, spend not more than 3.5% a year. These percentages may seem low. But if you live a long time, you could run out of money late in life if you don't spend carefully.
The webpages listed below gives you more information about these funds, and about managing money in retirement.
2007-06-02 19:19:40 · answer #1 · answered by Uncle Leo 5 · 0⤊ 0⤋
It's never too late to learn. Read several books & articles on investing after retirement. Short answers in this forum won't help.
Learn "asset allocation". Even though retiered, some money should be in equities. Think in percentages. Money that you won't need in twenty years can be invested more aggressivly than money you'll need in the next 5 years.
Good luck!
2007-06-02 16:09:21 · answer #2 · answered by Common Sense 7 · 0⤊ 0⤋
If you have only one year left before you retire, you are in the wealth preservation time of life. You cannot afford to lose much, because you have no time to make up a big loss.
2007-06-02 16:01:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
save money for yourself first!
if you have some leftovers, you can begin invest in stock but with certain precaution though. i would suggest not more than 20% in stock market as it offer volatility for you to rake profit or loose money. invest in penny stock is not very bad idea if you want fast money but bare in mind that it come with a lot of risks. invest in bluechip probably is the safest bet but only if it return more than CD though. otherwise, it not worth the risk you been hovering.
2007-06-02 20:40:46 · answer #4 · answered by BigBen 5 · 0⤊ 0⤋
Open a brokerage account at Zecco and hire a Portfolio Manager with over a decade of experience in the Stock Markets like myself.
2007-06-02 16:52:24 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Get to a financial analyst,quick!
There are good ones out there who will not charge you, and will steer you in the right direction.
There is no "one size fits all" answer.
Good luck, Enjoy your retirement,
2007-06-02 15:53:17 · answer #6 · answered by TedEx 7 · 0⤊ 0⤋
Dave Ramsey is on the radio three hours a day in my area. He is a no nonsense, straight shooting, financial adviser. You can find out all about him, where you can listen to and contact him at his web site. www.daveramsey.com
2007-06-02 16:12:32 · answer #7 · answered by bella 3 · 0⤊ 0⤋
getting an education in investing?
2007-06-02 15:51:58 · answer #8 · answered by smiling_freds_biz_info 6 · 0⤊ 0⤋