The stock market cheered signals that the Federal Reserve will cut interest rates this month. There was no complaint from politicians, who see low interest rates as encouraging economic growth. But what about savers? A decision to cut interest rates will send them on a search for higher yields, and encourage some to take risks […]
Whether you’re trying to decide how to invest or considering the prospects for a better job, the economic outlook has never been more confusing. Yes, the economy is doing well right now, despite the disruptions of tariffs and uncertainty over global growth. And certainly the stock market, hovering at record highs, encourages optimism. But both […]
“Chicken money” is money you can’t afford to lose. It’s that simple. The amount of chicken money you need depends on your overall financial situation, stage in life, and risk tolerance. Just about everyone needs some money that is not intended for ordinary spending and not part of your investment program. Chicken money should be […]
If your retirement funds are invested in the stock market, you simply can’t afford to ignore the signals the market is sending. Any decisions about selling, or buying the dips, must depend on your own risk tolerance, time horizon and overall financial situation. But the time to consider those things is now — at what […]
Dear Terry, Enjoyed your recent piece, thanks for outlining some history of Social Security adjustments. My question: How long can we continue calling/considering treasury bills holding SocialSecurity funds as “assets”? They’re not real estate, commodities or a productive item, they are pure IOU’s. (albeit high class IOU’s) But any IOU, regardless of pedigree, rests on […]
New to your site – What is Chicken Money? Terry Says: Chicken money is money you simply cannot afford to lose! So you don’t take risks with it. These days it’s frustrating, since Chicken Money belongs in bank CDs, Treasury bills (www.TreasuryDirect.gov) and money market funds. None pays very much! But remember the mantra of […]
Hi Terry, as of right now I am heavily invested in stocks and mutual funds. Where would you say is a safe place to put cash if you have concerns about the market? Terry Says: A place where you have no risk — but earn literally nothing! You can use an insured money market deposit […]
HI Terry, I am planning to retire at the end of this year when I will be 68 yrs. old and, if needed, would start Social Security. I am VERY concerned about loosing my money like what happened in 2008. We have attended MANY investment/retirement seminars over the past years and I am still very […]
I need regular withdrawals from my IRA to supplement my social security living expenses. How can I safeguard my IRA funds from the predicted market drop. Terry Says: The only way to completely safeguard your investments from a stock market decline is to be completely out of the market! I’m being serious here. You could […]
I understand all of the hoopla about the billion dollar power ball lottery, the effect of taxes on winnings, etc. but I have a simple question regarding any sizeable lottery winnings. Let’s say you win $10M and want the time to consult with various financial advisors before spending any of your winnings. So, you deposit […]
I have been researching safer (than stocks) investment options such as indexed annuities and commercial mortgage bridge loans. Annuities are safe but the surrender charges and withdrawal limits concern me. There is not much information (or history) on the bridge loans although the investment period is limited to a year and the interest is tempting […]
Having recently retired with no mortgage or outstanding debt, I find myself with a substantial amount of money in two checking accounts. I would like to keep the money available for family emergencies but could use some advise as to where it would earn a better interest than what the banks are now offering. Terry […]
Is this a safe fund to be invested in at this time? I have 95% of my savings invested in this fund , personal money and IRA money. Terry Says: I would never recommend having 95 percent of your money in any one fund! Where is your “chicken money” — the money you can’t afford […]
Received approx. 450,000.00 life insur.benefit and need advice on best way to allocate in financial investments. I am employed and plan to work until I am 65. My husband had 401k. Of 92000.00 which fidelity moved to a beneficiary acct. It is active and I am leaving it for know until I get a better […]
I am 70 years old, unmarried and no children. I have a mutual fund with TRowe Price called Summit cash fund, a money fund preserving capital and liquidity. As you can see I am not a risk taker (stock market). I am not comfortable with this fund since there is no FDIC guarantee of my […]
The stock market has lulled us all into thinking the only way it can go is up! After all, last year the market punched up through 14,000, and 15,000, and then 16,000 without much of a pause. But now that we’ve seen a few weeks of both volatility and downside, it’s time to reconsider both […]
I’m retiring and recently sold my home and downsized to a smaller home in Florida. I picked Florida because of lower property taxes and no state income tax. Tired of paying Illinois high rates on everything. I purchased a town house in a golf community with no mortgage. After purchasing this town home I have […]
Is this a good time to invest in TRowe Price Floating Rate fund (PRFRX) or similar funds? Also should I sell intermediate bond funds and buy short term bond funds as treasury yields seem to be heading higher now (Jun-Jul 2013). I’m mainly investing for income. Am retired and in my 60’s. Thanks. SAVAGE SAYS: […]
Do you have an opinion on investing in Duke Energy’s “Premier Notes”? They are advertised in BetterInvesting Magazine as “an alternative for your short-term funds.” I realize there is risk in investing any funds in a non-insured type investment but the floating rate offered on these notes is certainly attractive for short-term funds, Thanks. SAVAGE […]
What % of stock in a 1.4 million portfolio should I have? I’m retired with an annual income of 40,000. Right now I have only 13% in stocks and know I should have more. Thank You, Greg SAVAGE SAYS: There’s no set percentage, and a lot depends on your age and other income. BUT, where […]
