Senior investment — instead of low rates in the bank
Hi Terry, I have $100k sitting in money market account gaining less than 1%.
I always left it for liquidity but not I’m 60 and looking to invest with higher return.
I do have 401k funds but never opened an IRA traditional or Roth. Looking for suggestions to invest. Plan to retire at 67. Thanks
Terry Says
So let me ask you: How much of that $100,000 are you willing to risk losing???
Hmm — I thought not!!
The Fed is punishing savers like you and me by keeping interest rates artificially low these days. But “chicken money” demands you be more concerned about the return OF your money than the return ON your money!
If you are still working, it might be a good idea to put the allowed $7,000 into a Roth IRA this year, assuming you qualify. Any gains on investments inside it will grow tax-free. But be very careful about keeping your remaining money safe vs getting a slightly higher return. And take a close look at your investment allocations inside your existing retirement account. You can afford to stick with stocks for the long run, and having money on the side will keep you from panicking if the market does take a tumble.
