Requesting some advice

[Jack Deuce]

Some background: Married, 61 yo, partially retired living on savings
and want to stay conservative in my retirement investments.

I consolidated my IRA/401 with a large brokerage house 8 years ago and
moved 2/3 to cash (CD's and MM) within the last couple years. When
the last CD matured the cash went to their CASH/MM account that is
only paying 1/10 of 1%. My financial consultant wants me to buy US
Treasuries which, if I understood him correctly, would cost 1/2
percent?? I've had bonds in the past but have never made any money
with them so I have resisted going there.

He now has suggested some bond funds and a couple of dividend funds,
PTTDX, ACITX, and BULIX. The rate of return is between 3.5 and 5.5
depending on which fund I were to purchase. The best CD I can find is
at MetLife paying 2.00.

I really need some independent and impartial advice as to what
direction to proceed. I plan on leaving my IRA alone for several more
years so can take on some risk but at the same time I want to protect
as much of the "cash" as I can. The other 1/3 of my IRA is in stocks
and Mutual Funds (no bonds or bond funds) heavily weighted in
financials.

Buy US Treasuries, bonds or bond funds, mutual funds with good
dividends or CD's? Any input is appreciated.

 

[Douglas Johnson]

Some background: Married, 61 yo, partially retired living on savings
and want to stay conservative in my retirement investments.

Buy US Treasuries, bonds or bond funds, mutual funds with good
dividends or CD's? Any input is appreciated.

It is hard to give specific advice without understand a whole lot more about
your situation than you probably want to put in a public forum. I think the
answer is "all of the above."

Here is a really good article that suggests a portfolio for a conservative
retiree. http://news.morningstar.com/articlenet/article.aspx?id=308814
It might give you a starting point.

-- Doug

 

[anoop]

He now has suggested some bond funds and a couple of dividend funds,
PTTDX, ACITX, and BULIX. The rate of return is between 3.5 and 5.5
depending on which fund I were to purchase.  The best CD I can find is
at MetLife paying 2.00.

While the yields may be higher, they do come with additional risk.

I really need some independent and impartial advice as to what
direction to proceed.  I plan on leaving my IRA alone for several more
years so can take on some risk but at the same time I want to protect
as much of the "cash" as I can.  The other 1/3 of my IRA is in stocks
and Mutual Funds (no bonds or bond funds) heavily weighted in
financials.

I don't know that time horizon helps with risk in any
comprehensible/practical way. We can't trust the ratings
agencies and we can trust what's on the balance sheets
of companies.

Buy US Treasuries, bonds or bond funds, mutual funds with good
dividends or CD's? Any input is appreciated.

The closest thing that I've seen to planning a retirement in a
near risk-free way is Zvi Bodie's Worry Free Investing.
http://zvibodie.com/Worry_Free_Investing
At the bottom of that page he has a link to another
page where there are some videos that essentially
describe the approach in his book.

Anoop