Ask Terry Questions Asset Allocation for 93 year old widow.

Asset Allocation for 93 year old widow.

By Terry Savage on January 23, 2025 | Financial Planning / Retirement

Hi Terry, What would you recommend for asset allocation for a 93 year old widow. I still live at home, but no longer drive. Right now I have Domestic Stock 28%, Foreign Stock 4%, Bonds and TBILLS 37%, Money market 31%. Looking for a successful asset allocation for my age, and also to preserve my Cook County Senior Freeze ($65,000). Is there a formula where one can determine the level of liquidity? As far as bonds and tbills do you favor longer maturities or shorter or a mix? Thanks and love your show. Louise.

Terry Says

Well, first let me say that I’m impressed that you’ve done so well, and continue to do so well, at this age in managing your own investments.
My immediate thought was to ask you if you have a current estate plan — and if you have healthcare power of attorney, and who would you trust to handle these issues if you are alive but unable to act on your own!

Not knowing the total amount of your assets, or your planning, I’d suggest being mostly “liquid” in money market deposit accounts, or T-bills ranging from 6-months to five years, with staggered maturities. Your question leads me to believe that you understand this advice.

But if your stocks have long-term capital gains (outside an IRA account), then you probably don’t want to take the tax consequences of selling them now. That could impact your Medicare premiums as well as your senior freeze exemption.

If you don’t have an estate plan and both healthcare and financial powers of attorney, please write back to the email you receive notifying you that your question has been answered, and I’ll point you in the correct direction. Include your phone number, and state of residence. If you don’t have this well organized, you might benefit from at least one meeting with a FIDUCIARY fee-only financial planner that you can trust.

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