savings

Terry, My husband and I are 62. We are self employed. He will be able to receive social security. I am receiving about $18000 in Teachers Retirement annully. We have about $500000 in his SEP which we max out each year. Where would be a good place to put an additional $100000 cash to keep for retirement?. Right now it is in a savings account. Thank you

Terry Says:  Well, I don’t know how your SEP is invested — whether it is diversified in stocks across categories, or more conservatively invested.  You do have time on your side, so if you don’t have enough stock market exposure you might want to try an Equity-Income fund.  (My favorite — I’ve owned it for years — is the T. Rowe Price Equity Income fund, but Vanguard and Fidelity offer them too.)  Just remember that you are exposing some of this money to the risk of loss.   And you’ll need self-discipline to ride out a market decline when one comes.  There is no sin to keeping a significant amount of “chicken money” (see my recent column on my website) safely in the bank.  You won’t make any money — but then again, you won’t lose any!