Ask Terry Questions Safe Investment

Safe Investment

By Terry Savage on October 09, 2023 | Chicken Money

We have $2 million in retirement savings at age 70, and only need some income from this, along with our social security income. We are very conservative, and now that interest rates are higher, were thinking of putting some portion (maybe 30%) in a very safe place, such as CDs, fixed annuity, or treasuries. I see that 30 yr treasuries are at 4.7%, 10 yr treasuries at 4.6%, and CDs and fixed annuities above 5%. We will not likely want the income from whatever we choose because once we start RMDs there will be enough from SS and RMDs for our needs. What would you suggest as far as these guaranteed ultra-safe securities, and how should we monitor conditions to act now or wait until a certain time to act? I’d like to have a plan so as to be ready to pull the trigger at the right time either now or later, which would give us some time to think about it and become comfortable with the plan especially if we are locking up money for an extended period of time, such as 10 years.

Terry Says

I’d start with these:

The time to “extend maturities” is when interest rates are at their peak. Of course, we will only know that in hindsight. Since your only goal is safety, I’d advise keeping at least half in 6-mo T-bills, and purchasing them on a staggered basis.



a personal
finance question