Where to put 10,000 for some growth
I am a 55 year old woman, with nothing, literally nothing! No 401K, no real estate, no savings. For a number of reasons I am “ starting over” while this may sound incredibly sad, actually it is not, for the first time in many many years I am getting back on my feet! When I do “ something” with this money I am doing it with ALL of my debt paid off and of course a stable career as a respiratory therapist. I do live with my domestic partner of 5 years, I am on his healthcare insurance, 401K and life insurance as an equal with his grown children. He is retiring in 3 years and he would like me to be able to retire with him. Of course this will be with HIS 6000$ a month pension as again I have nothing. But I have finally started a savings account, and I have 10,000 that I want / need to put somewhere! I want growth and I want to be able to add to it and also have some access in case of an emergency!
Again as I said, my “ partner” has stated he will take care of me, but I am not foolish nor do I have blinders on as we are not married as of yet and I know I need to rely on myself. I will continue to work a few days a week when we “ retire” because frankly I like my independence and own money. My employers 401K offers nothing except shelter, they occasionally contribute depending on what kind of year the business has, so I have no money going there!
Please help, what should I do with this money….the 10,0000? I would like aggressive growth but realize that comes with risk, as I have years of a bad marriage, bankruptcy( several years ago), etc to make up for………where can I get a little of both? Sorry I am rambling, HELP!
Thankyou in advance!
Terry Says
Whew, take a deep breath. I am glad you are starting over, and it looks like you have a reasonable outlook about most things.
If I were a financial planner, which you need, I would ask a few things about your future.
First, will you qualify for Social Security in the future? Go to SocialSecurity.gov and create your own “account” there to check on your likely benefits in 12 years when you can retire with full SS benefits. (You never want to take sS early.) SS — and I DO believe it will still be there! — is what will keep you from being a “bag lady” in your old age!
If you “retire” now, you have 10 years to worry about HEALTH INSURANCE if HE retires, before you qualify for Medicare. That will certainly be VERY costly. Go to www.eHealthInsurance.com to find out just how much you will have to pay for health insurance if HE decides to retire and you don’t get his health benefits!
Now I will try to answer your question about growing your money without taking risk. I will do that by asking another question: How much of that $10k are you willing to LOSE?
If your answer is NOTHING, then the money belongs in a bank CD, 1 year maximum, where it will earn almost nothing. If you are willing to leave it in the stock market for at least 10years, go to Fidelity or Vanguard, and open a Roth IRA, and contribute $6,000 and invest it in their equity-income fund. But don’t get scared if the market drops. It will eventually recover and grow. If you don’t have that discipline stick with CD!!
