What kind of funds at age 70 should an IRA be invested in?
Terry Says: There’s no set rule. That depends on how much money is in the IRA, and how much money you have outside the IRA — and what your spending habits are! In other words, it’s personal. If you have a LOT of money in your IRA and hope to leave most of it to your children except for what you are forced to withdraw, you might want to be more aggressive. But if you are just hoping to make your money last as long as you do, you need to take a more conservative approach. I have long recommended the “monte carlo” modeling process offered by most Certified Financial Planners and by mutual fund companies like Fidelity, Vanguard, and T. Rowe Price. This is not just a “guesswork” deal, nor an online “calcualtor” — but a real, individualized process of inputting your personal information and working with one of their planners to come up with an investment allocation and a withdrawal plan that has the greatest probability that you will not outlive your money.