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Retirement Income — no risk

By Terry Savage on April 19, 2021 | Chicken Money

I have a million in savings mostly in CDs making nothing now. I’m 62 and ready to retire and would be happy to make 3 percent. I have no risk tolerance whatsoever. What are my options if any? Thank you for your time.

Terry Says

If you have absolutely NO risk tolerance, then you cannot earn more than 1% these days, because the FED is purposely keeping interest rates low (punishing savers) to keep the economy growing.
But consider this. At only 3% inflation, the value of your spending power is cut in half in less than 25 years! And the actuarial tables suggest you’ll live at least that long!
AND — consider this: There has never been a 20-yer period where you would have lost money in a diversified large cap American stock portfolio (S&P 500) with dividends reinvested — even adjusted for inflation.

So those are risks you must balance! I suggest you consult a fee-only FIDUCIARY financial advisor who promises to put your interests first. You can find them through a link to Wealthramp.com (or go there directly) in a box on the top right corner of my website.



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