Dollars in bank + long term care
I am 71 years old and widowed as a four years ago.
I have money in four banks and one credit union in money markets. All FDIC insured.
I have no investments. I used to have CDs but the rates are so low it’s not worth tying the money up for several years.
I am retired & a business owner along with my kids… I am still drawing a paycheck weekly I go in the office once a week to do consulting I also get a substantial pay out at the end of the year.
I have spoken to several Financial planners and they all want me to invest.
I do not want to do that. I feel it is too risky.
I Live in a 55 and over community and own my own home free and clear.
My concern for the future is:
If something were to happen to the business and it closed. I could draw on the dollars I have in the bank along with SS & live comfortably for the next 15 possibly 20 years.
I am worried because I have no long term care insurance also.
I feel very blessed & fortunate to be in the position I am in…
Although foolish that my money is just sitting in banks & not growing ??
I value your opinion. I listen to you on WGN
Radio when I can .
Any ideas ?? Or should I not be worried ??
Thank you,
Terry Says
Well, to me it seems like you have the perfect financial plan! Of course, I’m not trying to sell you anything!
I hope the business keeps paying, and that you can hang on to your savings for as long as possible. Twenty years should really do it!
There is some truth that you need growth to offset the impact of inflation on your cash. BUT, I have a feeling that interest rates will start rising very soon to offset inflation. This is NOT the time to start investing, at your age, stage, and the fact that for the past decade the market has outperformed all of its historical averages.
So sleep well, keep working, and relax.
BUT, I hope these planners also suggested you have a will, or better yet a Revocable Living Trust (search my columns at my website for an explanation). You’ll need a healthcare power of attorney and a living will (pull the plug document) as well. So seek out an estate planning attorney.
I’m sorry you don’t have long term care insurance. that’s the one additional thing that gives peace of mind. But not knowing the total amount of your assets, I hesitate to suggest that you put money into a combined Life/LTC policy now. If you don’t use the care, your beneficiaries get the death benefit. (also search for that column) If you want trusted advice on that subject call Brian Gordon at 800-533-6242.
