I’m in the process of selling some property and I was interested in the best place to place my money? My husband and I are 69&74 years old so we didn’t want to invest in anything long term. We know nothing about the stock market, which was suggested to us.
Terry Says: Well a lot depends on your total financial picture. Let me ask you this question: How much of the money are you willing to lose?
Yes, that’s a startling thought! But if you want to keep it absolutely safe, I would suggest bank CDs — even though they don’t pay any interest, right now. If the Fed starts raising rates, that will change. Stocks give growth over the long run, but based on your ages I’m thinking that you don’t want to take a lot of risk. If I’m wrong about that, please write back and give me more details (which I don’t necessarily have to post).
By the way, I’m assuming you have no high interest rate debt, such as credit card debt. Paying that down would be an obvious first step.
Also, though you didn’t ask, may I suggest that this would be a great time to do a new “estate plan” — by creating a revocable living trust (if you don’t already have one) and opening the bank accounts for this money in the name of the trust. That way you can be co-trustees, and if either is unable to act the other can take over. You can make your adult child the “successor trustee” if something happens to both of you.
And you might consider the costs of long term care. Depending on the amount of the money, you could buy a combination life/long term care insurance policy to help in that regard. If you don’t need care your beneficiary would get a death benefit. But I’m getting farther down the road here from your original question. Still, give it some thought — depending on your circumstances.