Where to put my money now
I’m 66, I have $75000 to save for my quickly approaching retirement – maybe 5-7 years. It’s pretty much all I have to invest – I’d like it to grow but can’t afford too much risk. I’m on my own and finances are not my thing???? Obviously thanks for your help
Terry Says
YOu should put that money in a series of bank CDs (certificate of deposit), probably for 6 month maturities, and stagger the purchases every three weeks. You should be earning about 4% on those CDs. Then as they mature in 6 months, you can roll them over.
I don’t think you should be taking ANY risk of loss with this money — and stocks obviously involve risk.
And if you are over 50 still working, and earning money, you can use $8,000 to buy the CD inside an Individual REtirement Account (IRA). If you do it before April 15th, you can consider it a 2024 contribution. Then you can make another %8,000 contribution for 2025 at any time this year. Put that into your IRA account, as a second CD.
That way you won’t owe taxes on the interest you earn, and the whole thing can keep growing tax-deferred for retirement.
