Ask Terry Questions Investing at age 72

Investing at age 72

By Terry Savage on May 10, 2024 |

I’m 72 and have been in a fidelity balance fund for the last 10 years. Is there something else I should be looking at. It seems to be doing well.

Terry Says

That all depends on whether you have other investments that are more liquid.  And whether this investment is inside an IRA.  If it is in an IRA, you will have to start taking RMDs next year.  So I’d advise taking about 1/3 of the money and putting it into a money market account. That way, if the market falls in the next couple of years you’ll have cash for those required withdrawals –instead of having to sell fund shares at a loss.


If the money is NOT inside an IRA, you should calculate how much liquidity you have in savings.  A balanced fund is a good investment –but you still need some liquid cash for emergencies.  And you need a strong discipline to stick with it through the next bear market.  Ihave no idea when that will come, but one WILL come in the future!

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