Ask Terry Questions Treasury notes or CDs

Treasury notes or CDs

By Terry Savage on July 20, 2019 | Chicken Money

Long term? Don’t need the money vs index funds 87 years old ..must I go to a bank for rates? Are they variable or locked in?

Terry Says

Oh, my.  If you’re 87 years old, I think you don’t need to be in the stock market –unless you have money in a retirement account and have named a young beneficiary to receive the account after your death.  But I’m assuming this is not an Individual Retirement Account, but just your savings.

Even if you don’t currently “need” the money, you need to keep it safe for future use, especially if you need someone to care for you in your later years.  That means it belongs safely in the bank in insured CDs.

Please let me ask another question:  Do you have an”estate plan” — perhaps a will, or better a Revocable Living Trust?  If you have a RLT you should put your CDs in the name of the trust — so your successor trustee can handle any needed payments if you are incapacitated.  And you need a healthcare power of attorney and living will (pull the plug document!).  If you haven’t done this, please write back letting me know where you live (what state) and I can point you in the right direction to find an attorney for this purpose.

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