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Investment question for the money-minded


hana
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A good friend just asked me this, and I have absolutely no idea. I wouldn't know what to do with it, but I'm hoping some of you have suggestions.

 

If you had about $25,000 in savings and you wouldn't need it for about ten years, but you were pretty conservative with investments, what would you do with it? Oh, and you're 62 or 63, still working and expect early retirement years to be okay, but are more concerned about later years.

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Last time I checked rates, CD = Certificate of Death.

 

The market has been pretty flaky, but I personally expect a rebound come Nov 2. ;)

 

I think the best thing going for the last year or so is a Money Market account. We have a MM checking which pays more interest than any CD out there, without having to lock it into a time frame.

 

With that amount of cash, I'd look for some expert advice.

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I'd fully fund our ROTH IRAs and invest in good dividend-paying (growth & income) mutual funds. Also, with 10 years on my side I'd pick up some growth mutual funds (maybe even some international?) and put that at the top of my investment pyramid. If I were risk-adverse, I'd stay away from individual stocks. I'd maybe even pick up some Triple A rated, dividend paying bonds.

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Thanks, all! I'll pass along your advice. I think all her IRAS and everything are fully funded this year, and I think at her age she would be hesitant to purchase a rental property (maintenance might be difficult). The mixed reviews of cd's is interesting.

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