Ask Terry Questions How/what to diversify into?

How/what to diversify into?

By Terry Savage on July 18, 2019 | Financial Planning / Retirement

Hi Terry. My husband and I are in our beginning 80’s, both retired. We are actually in an enviable position. We own our city 2-flat and our vacation home no mortgages we have no debts. I have a dB pension, no SS. My husband receives SS. Our monthly income after taxes is approx $8000. We have always lived comfortably, below our standard of living. We are totally invested in the market to the tune of 4 million, good, sound stocks, not too many preferred. I worry that we should be more diversified but nothing looks as profitable as what we have. I bet I know what you’re going to say – “ Meet with a certified fiduciary financial advisor.” Probably will, I guess I’m just airing my concerns and looking for suggestions. PS, we both watch the market closely.

Terry Says

Will you be “watching the market closely” when it starts going down??  Will you panic in a big decline?  Please read my latest column on “Risk Management.”   With that much money invested, I’m not going to worry that you will be in the “poor house” in your old age.  But how will you deal with a bear market emotionally?

What are your alternatives to being fully invested in the stock market at this stage of life? Read my column on How to Buy Treasury Bills.  You won’t get rich, but you won’t get poor in T-bills!

You don’t mention having children or grandchildren.  But they are great little “diversifiers”!  You each can gift $15,000 a year to anyone — or to a 529 college savings plan for your grandchildren, if you have them.   I’m assuming you do have an up-to-date estate plan and everything else is in order.

And if you do want a trusted FIDUCIARY planner to to to find one.  It’s about more than “watching the market”!  I wish you a long life, few money worries, and good health.

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