Ask Terry Questions RMD not needed

RMD not needed

By Terry Savage on February 14, 2019 | Financial Planning / Retirement

My husband and receive about $30,000. each year; right now we have $55,000. in cash and $25000 at Vanguard. Out income taxes run about $7000 a year. I’m wondering how to invest this money, tips, muni bonds, or where? I am 76 and my husband is 80, house and car are paid for.

Terry Says

How “lucky” you are to have extra money in retirement!  It’s a direct reward for all your hard work saving and investing over the years.  There are lots of things you could do with this money, including taking a trip of a lifetime while you are young and healthy enough to enjoy it!  But what you really need is a financial plan — to make sure other issues are covered.  Have you done an estate plan?  Did you buy long term care insurance to cover that expensive possibility?

And what kind of risk are you willing to take with this money.  If it’s just a question of “where to put it”, I would suggest that you take NO risk and buy U.S. Treasury bills — the safest investment. They are currently yielding about 2.5%.  Here’s a link to a recent article I wrote about How to Buy Treasury Bills.

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